There would appear to be a surprisingly small number of people who like the idea of stock market punters making money. This is even though we are still in lockdown, and many are relying on a “multi-bagger” investment to save their finances. Against this background, the financial press over the weekend was perhaps not as helpful as it could have been regarding the debut of Cellular Goods (CBX), with the predictable mix of sour grapes from journalists, and stone throwing regarding the merits of the company. It might be said that if you do not like the concept of the stock market, and those who trade and invest there, do not write about it.
On a happier note, a stock where the “punters” were under water and where the stock is recovering sharply is “specialist” lender Amigo (AMGO). This has been a company where the detractors have said it was beyond redemption, especially in the heat of the boardroom bust up there. However, it may be that those following recent stock buyers such as JP Morgan and Simon Cawkwell a.ka. Evil Knievil. While there are the alleged obstacles of FCA approval and a Court Case regarding compensation to overcome, bulls argue that the shares are so depressed that the run up to such events represents a short squeeze opportunity. This is especially the case given the way the present stock price of 16p, up 35%, is well below 60p plus at the beginning of last year before the present unknowns were known.
Speaking of the punters, there is currently perhaps no small cap with a greater fan club than diagnostics group Genedrive (GDR). Here it would appear that the reason the shares were up by 27% lay in the revelation that the company is set to provide a live presentation to accompany the interim results, presented by CEO, David Budd and CFO, Matthew Fowler, on Friday 26 March at 10.00am. Given that loyal investors in Genedrive have sorely missed their CEO’s pronouncements of late, for there to be only another twenty five sleeps until he reveals all is clearly cause not only for celebration, but also a hefty share price rise.
From someone who has turned into a Howard Hughes in terms of accessibility, relatively speaking, we were once again serenaded by the Executive Chairman of Xtract Resources (XTR) via a RNS regarding the latest at the company’s Bushranger Project. Here it was announced that the mining development group had completed the third hole of the Bushranger programme and commenced the fourth hole from the same pad. Xtract added that after further modelling based on the outcome of hole BRDD-21-003, it was decided to re-position the hole to obtain a better intersection angle across the deposit, and that this hole has encountered traces of copper mineralisation at shallow depths well above the target zone.
One of the characteristics of the small cap market is there are often complaints when companies raise money. This rather misses the point that the main purpose of a company being listed on the stock market is to fund raise when required. Perhaps rather unhelpfully to the complainants regarding placings at the moment, it is that very often the share price does not actually go down / stay down. In the case of Fragrant Prosperity Holdings (FPP), it raised just over £500,000, with the company saying that the placing will help its search to identify appropriate acquisition candidates in the burgeoning Cannabis and Cannabis Therapeutics related sectors. Shares of FPP remained unchanged on the day.
Although it has been a difficult week in the London market, especially since spread betting group IG pulled the plug in terms of margins on stocks, some special situations seem to actually have stretched ahead on the upside. This may be related to the ultimate outcome of the IG move being that it will be more difficult to go short of stocks. In the case of diversified oil & gas producer i3 Energy (I3E), its above expectations production as reported last week, and hopes regarding the company’s maiden dividend announcement by the end of this quarter saw the shares rise another 7%. In the same sector, shares of Canadian Overseas Petroleum (COPL) rose another 5%, helped along by a RNS featuring a TR1 including HSBC, and on expectations regarding its acquisition of Atomic Oil and Gas.
On the Aquis market there were a couple of highlights worth noting. The first, given the current CBD popularity on the market, was Love Hemp group World High Life (AQSE:WHL), one of the UK’s leading CBD and Hemp product suppliers. It has distribution deals with over 1,500 stores in the UK, including leading brands such as Sainsbury’s, Boots, Ocado and Holland & Barrett. Shares of World High Life were up 7%.
Upper Thames Holdings plc (AQSE: UPPT) said that it will be changing the name of the Company to Valereum Blockchain Plc, conditional upon the passing of a resolution by the Shareholders of the Company. Richard Poulden, the Company’s Chairman commented; “The proposed name change to Valereum Blockchain Plc will more accurately reflect the future business of the Company as it moves towards an exciting future in the global Blockchain sector. Last week blockchain rock star, Vinay Gupta was appointed to Chair the company’s advisory committee. It was also revealed that serial entrepreneur David Lenigas has a 10.93% stake in the company.
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