There was disappointment for retail investor fans of Remote Monitored Systems (RMS), where its anti-viral face mask subsidiary Pharm2Farm announced a delay to production until January. This compared to previous guidance for the end of November. While this may not be a material or significant play in the long run if contracts continue to accrue, it was enough to take the shares 25% down to 1.9p. However, the stock is still more than double the November 0.9p low, even after the Braveheart (BRH) share sales, something which may explain why the bears are still trying to undermine the company.
There was a 4% rise for shares of Two Shields (TSI) in the wake of its interim results for the 6 months to the end of September. Two Shields, is scheduled later this week to morph into Brandshield Systems, a digital brand protection solutions company. Brandshield, which operates a SaaS model, said that of 30 September 2020 annual recurring revenue was at $2.5m, boosted by extra threats spring up in the wake of the COVID-19 pandemic.
Those looking for a good old fashioned surging stock needed to look no further than Rainbow Rare Earths (RBW), where the clue was rather in the name as far as the explanation for the share price rise of 50%. The driver in the immediate term has been the sharp rise in the price of rare earth elements over recent weeks. Traders pointed to neodymium being a key part of the Rainbow portfolio, and hence adding to the latest bullish momentum. Earlier this month the company offered a technical update on its Phalaborwa Rare Earths Project, in which it said that the proposed treatment of 2Mtpa of gypsum could deliver 10,000tpa of mixed rare earth carbonate containing some 3,100t Neodymium and Praseodymium making Rainbow a significant producer.
Irish eyes were smiling both on Arkle Resources (ARK), and its share price, in the wake of the discovery of a new gold bearing vein in an area near its Tombreen target. The stock was up nearly a third in the wake of the company saying that it continues to explore an area which has had little historic interest in county Wicklow / Wexford, Ireland.
There was good follow through on the previous day’s AGM and Chairman’s Statement from CAP-XX (CPX). Here the focus was on new production lines in Sydney and a 10% increase in the pipeline for the maker of supercapacitor and energy management systems used in electronic devices. Shares in CAP-XX were up another 14%.
Finally, in a generally better day for resources stocks of all shapes and sizes, there was a 6% rebound in mining development specialist Wishbone Gold (WSBN). This has come after a couple of weeks of profit taking after a stellar run to 14p. Traders were apparently looking for imminent news on multiple fronts, including the fast track exploration work at Paterson, White Mountain drilling news, and the commencement of drilling at Wishbone II.
One of the unwritten stock market rules of 2020 to date is that if the market cap is small enough, and the share price is low enough, shares in a company can be regarded as an opportunity. This is with or without either cash in the bank or necessarily a business model. However, in the case of oil sands / oil shale group Tomco (TOM) bulls were not afraid to target a slice of future 10,000 bpd production, revenues of $160m per year and an EBITDA of $50m coming company’s way. Surging trading volume also helped the optimists on a market cap of just £3m.
While there have been many key days in the history of UK Oil & Gas (UKOG), it would appear that November 27 could be one of the more important given that the market is expecting planning application news. In focus, and pushing the stock higher in recent days have been the attractions of the Loxley-1 appraisal well, and the prospect of drilling the largest untested Kimmeridge section.
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