There was something of a game of cat and mouse with reference to Braveheart (BRH) and its investee company Remote Monitored Systems (RMS). The speculative excitement was provided by if / when Braveheart will finally have cleared its position in RMS, with a 7% stake left to be offloaded. Given the way that shares of RMS closed down some 10%, after rallying initially, the best guess was that BRH was close to exiting. However, traders were suggesting that once gone the RMS share price could rebound quite sharply. BRH shares were up 1%, no doubt helped by having made £15m on a £0.5m investment in RMS to date.
Presumably on the basis that COVID-19 has been cured, the NHS and the economy / jobs saved, as well as Brexit done, the Government has decided to focus on the most important issues: Green virtue signalling a.k.a hot air. The result is a Green Industrial Revolution and Boris Johnson’s Ten Point net-zero plan: net-zero presumably referring to what the £12bn spent will achieve. At least on the plus side, renewables, sustainable and green stocks of all shapes and sizes rose well. They included AFC Energy (AFC), Velocys (VLS), Powerhouse Energy (PHE) and ITM Power (ITM), with clean “blue” (low carbon) hydrogen as fuel being the particular angle. Even Vanadium play Ferro-Alloy Resources (FAR) rose 10% as the green hydrogen strategy is one which includes using hydrogen in the ore reduction process, and using hydrogen ammonia byproduct material in vanadium processing.
There was double news for biotech group Tiziana Life Sciences (TILS) where Executive Chairman Gabriele Cerrone topped up his already significant holding via another 45,000 shares at 84p – something which may suggest that the stock is finally near the floor. The latest stakebuilding was in addition to the 1,900,000 stock options exercised at the end of October increasing his total holding by some 2,000,000 shares. Tiziana shares rallied 4% to 88p.
Sticking with the biotech space, and Hemogenyx Pharma (HEMO) was back on the leaderboard with a 8% rise, as the company announced a financing facility of up to £60m. This was quite a significant amount given the £40m market cap of the company at the moment. Hemogenyx said that the proceeds would be used to enhance control over its intellectual property assets, and give it flexibility in terms of choosing strategic partnerships.
Given how much some of the “COVID-19” plays have declined since the Pfizer / Moderna vaccines were unveiled after President Trump lost, it was quite a relief to see Avacta (AVCT) surge by 28%, to close at 134p after a recent bear trap below 100p. Indeed, some were suggesting that the reason for the rebound was a tweet implying that Avacta is somehow involved with the Moderna vaccine. Then again, so apparently is Dolly Parton to the tune of $1m.
As far as stocks which have not been that high profile of late, a new contender was natural gas group Valeura Energy (VLU) which edged up 4%. Here the call amongst traders was to highlight the way the company has a £20m market cap and is trading below the cash level. Given that there are only 87m shares in issue and with a small % free float, Valeura would not need much to get the stock to move. Baillie Gifford own 20%, so there is solid institutional backing. Given the present £26m cash in the bank, soon to be £37m due to the sale of an asset. There is the prospect the shares could soon be trading close to 100% below cash, and with no debt.
Given the way that Kibo Energy (KIBO) shares have seemingly spent an eternity between 0.2p – 0.3p, it appeared that things could finally be on the move for the multi-asset energy company. This was off the back of eagle- eyed traders checking out the Mast Energy Developments latest updated entry at Companies House, and assuming that this means that an IPO is imminent. This would clearly unlock value for Kibo. Indeed, some in the market were suggesting that Kibo is priced at zero when one deducts the value of its 35% holding in Katoro (KAT) and the MED IPO. Shares of Kibo were up 5% to 0.24p.
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