One of the problems with the stock market is that one needs to be patient. The other problem is that one needs to be nimble – along the lines of “it never hurts to take a profit.” The final session of the week illustrated how both of these stock market adages can be right and wrong at the same time. In the case of “sexual health” specialist Futural Medical (FUM), its shares rose sharply by 155%. It revealed that the EU Notified Body had completed its review of its Technical Dossier for MED3000 with a recommendation to certificate MED3000 as a Class 2B approved medical device. Perhaps the best aspect of the topical gel for erectile dysfunction is that it does not require a prescription – eliminating at least one of several layers of potential embarrassment for those concerned. Some traders were saying that it could have as much impact as Viagra – although they may have been talking their own book.
There may have been some “smart” traders who, after sitting it out with Ferro Alloy Metals (FAR) over the early months of this year decided that bagging a profit at one year highs above 15p at the start of the week was the thing to do. They may even have decided that taking a profit near to 30p on Thursday was the thing to do. However, it would appear that anyone currently exiting the stock is not fully factoring the presence of Sir Mick “Xstrata” Davis as Chairman. Here shares in the vanadium play closed up another 56% at £131m. This figure is still considerably less that the market cap of his former FTSE 100 company.
Rather closer to earth, literally, was Xtract Resources (XTR) as the mining development specialist unveiled assay results from the first hole at the Racecourse deposit. This confirmed mineralisation for almost a kilometre down-plunge, with some in the market hoping that this could be the tip of the iceberg in terms of what Xtract may be able to prove up. The overall grade of 0.33% CuEq and the grade uniformity over the entire intercept suggested that Xtract’s goal of 2Mt of contained copper are very much on track.
There were a couple of double figure percentage gains for a couple of perennial bear targets, which have spectacularly refused to bow to pressure. For instance, shares of waste plastic to hydrogen play Powerhouse Energy (PHE) rose 11% as the bears apparently initially mistook the latest RNS announcement as not being one that will clear the recent stock overhang. Indeed, the double digit percentage gain for PHE followed a weak start in the wake of the news from the company.
In the case of Palladium specialist Eurasia Mining (EUA), seeds of doubt by the bears being planted regarding the length of time the sale of the company is taking seemed to be being counterproductive, with the stock jumping 10%. Of course, in recent months it has generally been the case for Eurasia that no news has been good news, as it looks to finesse its position in terms of potential M&A.
A company where patience has been rewarded, and where the temptation to exit too early had to be resisted, was Mobile Streams (MOS). Here the AIM quoted mobile content and data intelligence company said it has signed a major contract with Quanta Media Group Holdings (QMGH) for the use of its Streams data platform. The deal will increase monthly Streams revenue from April to an estimated £25,000 per month. Shares of Mobile Streams jumped another 39%.
It may prove to be the case that the latest update from inventory monetisation specialist Supply@Me Capital (SYME) turns out to be both a turning point for the company and the share price. This is said in the wake of the latest inventory “in transit” monetisation, transaction update. This is especially the case if one takes the view that this particular revenue stream is both significant and novel, and it both validates and supports the business model that the company kicked off on the stock market with over the past year. The situation has also been helped by SYME’s return from suspension which is effectively a fresh thumbs up for the company and its modus operandi from the regulator.
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