There was not too much doubt as to what small cap was in the limelight over the course of the session, helped along by no less than three deal RNSs and a TR1 on the day. While some traders were wondering exactly what the logistics regarding a proposed Atomic expected transaction / completion of a transaction plus the conditional suspension and the cancellation of the listing of Canadian Overseas Petroleum (COPL) would pan out – the 8% share price rise suggested that they had given it the goings on at the group the thumbs up. Indeed, Canadian turned over its full 1.5bn shares ahead of the expected Atomic completion after the London stock market close.
Even for those who may not be experts in the mining area, the arrival of Sir Mick “Xstrata” Davis as Chairman at Ferro Alloy Resources (FAR) as announced at the start of the week was something which was always going to be something of a “no brainer” in terms of the impact on the vanadium specialist. Indeed, the analogy would be that Eric Clapton turns up to lend a “slow hand” at your local pub band. This news – regarding Sir Mick – was still permeating the small cap space 24 hours after it was announced, with the result being a further 94% share price hike, and a market cap for FAR approaching £100m.
It is normally somewhat strange when a stock is among the most followed of the day, even when the share price is relatively flat. This was certainly the case at COVID-19 testing kit group MyHealthChecked (MHC), where one might have been forgiven for thinking that some traders were waiting for something positive to happen imminently. Of course, the last time such anticipation surrounded the stock at the start of this month, the excitement was cooled off by a “speeding ticket” RNS in which MHC said that “it has become aware of speculation over the weekend that a significant potential contract is in the pipeline.” The Company then added that, “while it is engaged in commercial discussions with a number of parties for the supply of COVID-19 testing kits, no contracts have been signed to date, nor is there any certainty that any of these discussions will result in commercial agreement.”
Independent oil and gas production, development and exploration company focused on Nigeria, San Leon Energy (SLE), initially saw a dip in its shares, but closed near flat as investors read the detail of its latest operational update. Here it said that despite COVID-19 and OPEC quota related delays, it expected its loan note payments to be brought back up to speed. Indeed, the company said it expects to receive over US$98 million during this year versus a £150m market cap, and according to its dividend policy, to return 50% of our free cashflow to shareholders by way of special dividends.
There was celebration in the air at another cash rich oil and gas group, i3 Energy (I3E) as the shares hit double figures at 10p with a 5% rise. Here, after a strong update last month the company said it would declare its maiden dividend in Q121 – subject to loan note holder, judicial, and shareholder approval – for payment in early 2Q. I3 Energy said it aims to distribute up to 30% of free cash flow as a dividend to shareholders. Clearly, eagle eyed calendar watchers have been noting how long it is until Q1 ends as they look forward to i3E’s forthcoming payout.
Something which happens quite frequently with stocks in the same sector is that once one of them is picked up by investors and gains in share price / market price, then a newer, smaller play comes into focus. This could very well be the case as far as Aquis listed Love Hemp (LIFE) in the wake of the announcement of its exclusive five year, multi-million-dollar global partnership with UFC (Ultimate Fighting Championship), a mixed martial arts organisation and the largest Pay-Per-View event provider in the world. Given that the CBD and Hemp product supplier already has agreements with the likes of Ocado, Boots, and Holland & Barratt, on a national scale, the UFC move is seen as getting it on track to being a world brand. All of this at a market cap which is around a tenth of stock market darling Zoetic (ZOE). Love Hemp shares closed up 12%.
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