Who Wants To Be A Trillionaire?
“A poor man’s money is his own. A rich man’s money belongs to everyone.”
I have to admit, anyone becoming a trillionaire in my lifetime was perhaps something that even a few years ago seemed to be a fantasy. Instead, we have Elon Musk achieving this milestone with relative ease via the SpaceX IPO. Given the 20% premium the stock achieved on its first day of trading, Mr Musk has also helped a decent number of investors get a little richer as well. Of course, all the lefty financial journalists (the majority of journalists) we all hoping that the IPO was a failure.
The rest of us are left wondering why we did not buy into it, or of course set up our own spaceflight company. At the same time there is the apparent moral hazard of how someone can be allowed to be that rich? Perhaps the question is how someone can be that intelligent, entrepreneurial, and determined, to deliver such an achievement. Being worth $1tln Musk could of course give away 99% of his wealth and still be rich. At the same time, creating $1tln of wealth makes a decent contribution to the US economy, and perhaps ensures that a fraction of it will trickle down to helping those who are less fortunate, or indeed, less talented.
Kendrick Resources (KEN)
During the week I was asked to host an event at the City of London Club. It focused on Namibia, in which the guest speaker was Colin Bird, the founder of five listed miing companies. He is someone who I have known for over 10 days, and as I said in my introduction, “hasn’t aged a day since then.” I regard him as being something of a stock market uncle, as he has been kind and helpful to me ever since I first met him. That Kendrick (KEN), which is focused on rare earths in Namibia has been the top stock market performing this year on the London market is certainly justice for Colin. Indeed, in Thursday’s presentation he outlined why and how there could be even more upside that the 29x we have seen year to date.
MedPal (MPAL)
Last week I mentioned the idea of trying to identify companies whose shares are likely to go up and stay up. The rule of thumb was said to be a stock that is up over 50% over the past month, but also over 30% in the past week. The idea is that if the shares are able to jump through these similar but slightly skew-whiff parameters, then they have enough strength in them, either fundamental or technical, to keep on going. Coincidentally, a company which I had already forecast could be 4.5p by the end of June managed to hit this level intraday on Friday. It has also risen 64% over the past 30 days, and up 50% in the past week. The driver for the rise on Friday was the announcement of an oral tablet for Wegovy, the GLP-1 treatment for weight loss. MPAL came to market last summer as an online pharmacy, and last week launched New Health, a private weight management clinic. Therefore, the company is right on the zeitgeist as far as the boom in self care. The IPO last year was at 4p, and there have been several key milestones made by the company which justify a valuation rather closer to the implied market cap of the 13p share price peak seen last September.
Halo Minerals (HALO)
Halo came to market at the end of March, and it can be said that the market has not been as generous with the company as it perhaps could have been. This is particularly said on the basis that the stats offered during this week’s Investor Meet presentation underline the disconnect between the current £10m market cap and what the company is sitting on. Of course, being a legacy mine tailings focused group, the timeline and cost to production is going to be far less than the explorer / developers.
Rather gratifyingly, there has been a rebound in the shares in the run up to the presentation, and after mentions here in recent weeks in the wake of news and on a charting basis. That said, one would expect the shares to make the journey back towards the best levels after the IPO at 19p as the summer progresses.
This Week’s Stock Risers
There has been a decent smattering of companies who have followed the +50% 1 month / +30% 1 week risers. They include MedPal, Marechale (MAC), Rc365 (RCGH). However, what was interesting this week is that it may be that the +50%/+30% levels may be too high, or at least, do not need to be so high. For instance, Colin Bird alumni Bezant (BZT) and African Pioneer (AFP) were up 65/21 and 44/24, so even up 20% over a month and 20% during the week could be enough to deliver the goods for bulls looking for potential consistent gainers. We shall see.
Disclaimer & Declaration of Interest:
The information, investment views, and recommendations in this Zaks Traders Cafe interview are provided for general information purposes only. Nothing in this interview should be construed as a promotion or solicitation to buy or sell any financial product relating to any companies under discussion or referred to or to engage in or refrain from doing so or engage in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the commentator but no responsibility is accepted for actions based on such opinions or comments. The commentators may or may not hold investments in the companies under discussion.
