Stocks that (mostly) will not make the grade as far as the papers are concerned
Amigo (AMGO) actually made the papers today, The Times, with the payday lender’s stock managing to gain strength over and above recent gains, with a fresh 29% boost. Indeed, part of the impetus for the rise was the message from the article in which Amigo founder James Benamor said he wishes to return to the company, and will put a plan together on how this might be done. Speculation in this regard surrounded the apparent need for Benamor to be a 10% shareholder in Amigo in order to return to the board, and a previous attempt at coming back to the fray.
It was certainly the case that Power Metals (POW) announced itself as a busy situation, given the way that there was plenty to chew on regarding its Blue Ribbon (Red Rock Australia) JV update. Here it announced two new targets, with recorded Gold production of 112,085oz. The company said it expects to serve up 8 further project report updates over coming weeks. The stock put on 2%.
Wishbone Gold (WSBN) was a massive riser of 78%, as it announced a positive Jekyll and Hyde transformation from its previous incarnation, to a company which is debt free and with cash in the bank. Quite logically, but perhaps belatedly, Wishbone Gold said it intends to commence an active exploration and drilling programme at its eponymous Wishbone II gold project in Queensland, Australia.
Independent power producer Rurelec (RUR) was in the enviable position of having to admit that it knows of “no recent for the share price movement,” which in this case refers to a 78% plus share price rise. This so-called “speeding ticket RNS” – a forced announcement egged on by its Nomad, AIM and perhaps one or two shorters hiding in the wings, is the price companies pay (amongst many other costs and hassle) for being listed on the AIM market of the London Stock Exchange.
Pharmaceutical development company Nuformix (NFX) saw its shares rise over 17%, as it reported results from a Pre-clinical pulmonary fibrosis Pilot Study. The company described the results as “very encouraging,” albeit that they were drawn from a Pilot Study. However, given that the stock remains a relative outlier as compared to many other pharma stocks post Covid, it appeared that some investors were looking to pick up some pharma sector real estate at a relatively low end of the range.
Long dated income play Dukemount Capital (DKE) saw its shares up as much as 25%, as speculation grew regarding ongoing projects, and in the wake of the recent arrival of a new top flight CEO. It was evident that some professional investors were looking for the company to take advantage of the crisis in social care and new, heightened public sector requirements as the pandemic progresses, in terms of driving fresh deal flow at the company.
Catenae Innovation (CTEA), a technology developer specialising in blockchain saw its stock rise 4%, after a weak start to the day, in the wake of news that a former 9% stakeholder had totally exited the shareholder register. This was felt to have been an overhang in the market, and with the seller out a squeeze higher resulted in a stock, where bears have been lurking despite the stock rallying nearly 10 – fold in April. Investors still await contract news, so far treating the company as one that will be a winner in the Covid environment via its Covid status software technology.
Covid tester Avacta (AVCT) returned to bullish form with a 14% rise, as the ongoing pandemic underlined the value of the offering of the group. Investors pointed to the way that its test is the only one to date which has reached the clinical validation stage. On a practical level, the stocks proponents also point out that Avacta’s test is antigen based, quick and self-administered. The implication as far as the bull argument is concerned, is that the company will be amongst the leaders in the testing pack, with the greatest chance of being on the receiving end of large orders
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(The opinions expressed here are those of the author, a columnist for Share Talk.)