Going into the home stretch as far as Christmas is concerned, it appeared that many of the year’s best stock market performers were flexing their muscles in terms of underlining the winners they continue to be.
For instance, All Active Asset Capital (AAA) highlighted how it has been a 10 bagger in 2020 by adding another 27%. This came off the back of a third RNS in the same week. The punchline here was that the tech investor had entered into an option agreement with AAQUA B.V. AAA said it is paying a €1 million fee for the grant of the Option to AAQUA, with the Grant Fee fully offset against the exercise price payable by AAA should AAA exercise a tranche of the Option. The Option is valid from 18 December 2020 until 10 December 2021.
It was also a positive end to the week for edtech play Dev Clever (DEV). Here the 11% rise was apparently the result of recent selling between 6p – 8p finally being over and some traders happy to pay 9p plus. This was still shy of the significant institutional subscription level of 10p suggesting the stock is still undervalued. The driver was speculation regarding the next overdue update from the company regarding the model Dev Clever and partner Veative will use to carve up the estimated $10bn edtech market in India. This was highlighted by the recent deal with the NISA schools organisation in India and the 70,000 schools in the country under its umbrella.
The end of 2020 has seen a fresh revival in tech stocks and dealmaking in this space with this point underlined by the rally in shares of Summerway Capital (SWC) and the merits of tech sector specialist Vin Murria. The computer scientist’s arrival has seen shares of Summerway soar from below 100p to 215p in just four sessions, on hopes that the former Advanced Computer Software supremo will bring in a decent deal / acquisition to the table.
It is traditional on the stock market that companies looking to raise cash remain rather tight lipped until the fund raise is done. By contrast, a week before its oversubscribed £5m placing anti-viral face mask specialist Remote Monitored Systems (RMS) went against the grain and flagged it was considering “how best to fund an additional requirement” as a result of a delay of around a month. Happily, the magnitude of the funds raised could most likely fund any further delay for a couple of years. It also underlined the merits of RMS’s particularly honest form of investor relations with regard to raising cash, as well as its uniquely accommodative approach to helping short sellers. Accordingly, shares of the Pharm2farm owner RMS fell 0.34p to 1.36p.
On the plus side shareholders of mining sector investor Gunsynd (GUN) finally had the date of what they are calling “Rinconmas”, when investee company Rincon commences trading on the ASX – 21 December. Gunsynd said it believed Rincon IPO has been priced attractively and expected the listing to unlock significant value in months and years to come, with shares of the company closing up another 21% to close at 2.5p.
Sticking with Australia and with mining, and there was a continuation of the recent sharp rally in Wishbone Gold (WSBN), a company which has this month acquired the tag of being a “potential 100 bagger” by a normally bearish blogger. The latest driver for a 10% gain was speculation regarding 4 clear magnetic targets at the company’s Red Setter asset, and the prospect of warrants kicking in on the stock in the wake of the recent 10p placing.
Continuing its stellar first week of trading was Tirupati Graphite (TGR), the vertically integrated graphite / graphene play. Having started its life on the stock market at 45p, it finished the week at 63p, proving it had been priced to fly to those who regarded the company as potentially following in the footsteps of this year’s leading resource sector IPO’s – Kistos (KIST) and Pensana (PRE).
In a sign that perhaps the COVID-19 plays have been hit too hard by the bears and also been somewhat unlucky in the wake of vaccines conveniently arriving last month, it was the turn of Synairgen (SNG) to wrong foot the shorters. In this case an announcement that there could be shortened COVID-19 treatment timelines via Fast Track status for Synairgen’s SNG001 treatment lead to a sharp 27% rebound in the stock, amounting to a near 50% gain over the week.
If there was a stock in which the more professional investors were joining in with the “punters”, it seemed that Reabold Resources (RBD), the investor in upstream oil and gas projects, was still in focus a week after the announcement that the West Newton discovery would be the largest UK onshore discovery since 1973. While the stock has already risen sharply this week, there was talk of a 1p near term destination for the shares, up from recent sub 0.4p lows and the latest 0.69p close.
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