Oil Price Vs The Markets
It would appear that the oil price being over 30% since the start of the year is not enough for some oil bulls, who were clearly buying the stuff from January, off the back of the knowledge that there would be a conflict in the Middle East. They are also long and strong of oil stocks and have made out like bandits. But apparently this is not enough. They want more profit, and hence keep pour oil on Trump’s troubled diplomacy, as well as suggesting that the effect of the oil price and imminent fuel shortages has not been properly factored into the markets. Well, they would say that wouldn’t they. Part of the explanation of why everything, even airline schedules has not gone to hell is that when prices go up, demand falls, or at least can fall. It is a bit like the situation with London tube strikes: people work from home / just do not bother travelling. Plus we have all those electric cars and renewables now. This is not 1973. It is true though that a few more months of Iran could upset the applecart quite severely. But just for a change it may be that those who are the siren voices are jumping the gun on disaster.
Local Elections
Even if Sir Keir Starmer resigns tomorrow, it is interesting that until this day no one has .really given any real importance to the local elections. Indeed, they have historically been a trivial ordeal for the UK democratic process to get though. Therefore, if he resigns it really would be a coup for those who have had enough of his particular brand of “change.” What seems to be more likely is that he will have leadership challenges, be weakened, but soldier on until nearer the General Election. Those who would like Labour to fail are probably hoping that this would happen. However, the same people would be distinctly upset if a competent leader, say Andy Burnham turned up and steadied the ship. This is over and above the threat that Banquo’s Ghosts, a.k.a. Gordon Brown and Harriet Harman back into the fold, as if it were not 2009, but 1999, seems like a comedy move. It is just as well that Peter Mandelson has been comprehensively blown out of the game, or one presumes he would have been brought back in now too. The big takeaway from Thursday remains the rise of Reform and how even though it may be counterintuitive in terms of destroying the Red Wall, being on the right in social policy and on the left elsewhere seems to be a winning formula.
Wildcat Gold
Wildcat (WCAT) is a company which for various reasons I know very well, and have been following for the past few years. Part of the reason for the interest is that I am a great supporter of small cap companies and want them to succeed. Like me it would appear that for some strange reason the powers that be at the company are not exactly at the heart of the City Establishment, or is that City closed shop? Cue some in the market who despite their protestations of goodwill obviously want companies that they do not like for whatever (usually personal reasons) to fail, and will do everything they can to achieve this.
I have been on the receiving end of such wishes for years, and so far the negative contingent have prevailed. It will be interesting to see how long they prevail for. But getting back to WCAT, and of course right on cue as the company’s share price crossed the £2m Aquis listing threshold, the psycho commentary came in.
This is blatant, brutal and made even worse with the pretence of somehow being accurate, fair, or in the public interest. No, it is not. It is purely malevolent, self-serving clickbait. What WCAT is really trying to do is be a gold processor, and a significant one. Gold processing, rather than starting a mine, is the equivalent of falling off a log these days. In the current environment with gold not far off $5,000, it could be a real money spinner, with a market cap rather more than the £2.9m market cap and 46% rise on the week. So bad luck to the mud slingers, on this one, despite your best efforts at slurring a company on a persistent basis, you have failed. For what is left of my writing career, I shall endeavour to make sure you fail in your decades long manipulation, and the manipulation of those that help you, and that you help! After my recent experiences, any pretence of propriety on all of your parts is well and truly over.
Last week I gave Halo Minerals (HALO) a mention, as it was a company that I had missed at the IPO. It seemed to be an under the radar play. This week it became rather more visible as the copper development company focused on extracting critical minerals from legacy mining waste, announced that its 100%-owned subsidiary, Minera Playa Verde SpA, has formally filed an application with the Delegado Provincial de Chañaral for authorisation to conduct mining activities on Playa Grande de Chañaral. As the company said on Thursday, “Playa Verde is a unique opportunity to reprocess metal rich historic tailings to produce LME Grade A copper cathodes and a copper – gold concentrate from an at-surface, low-capex project in a Tier-1 mining jurisdiction whilst delivering meaningful environmental detoxification to the Chañaral Bay area.
Unlike a company which I was very close to, the rebels at Physiomics (PYC) prevailed and now Mike Whitlow and friends have the keys to the castle. To this end we were treated to a strategy update on Friday from the mathematical modelling, data science and biostatistics company supporting the development of new therapeutics and personalised medicine solutions, announced that the newly appointed Board has commenced an extensive review of the business. What was interesting here was the revelation that there is a cash runway up to 2027 and a robust and dependable commercial pipeline with significant scope for growth. So one could ask the question, why was the old board required to leave? Normally a requisition is seen at a company which is on the edge, on the line, and needs immediate remedial action. In the case of PYC, the new board seem to have arrived just when the company is turning the corner. Good news for them, perhaps not so good for the old board having done all the dirty work to get there.
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.
