AIM On Fire?
Perhaps the most unlikely scenario of the year to date is that the AIM index would be a leading part of the market. I even know of a small cap broker that had a record month last month.
As far as we know none of the plans to de-clog the market of red tape, cost or just inconvenience have actually been implemented. Instead, last week the AIM All Share was up nearly another 4%, while the FTSE 100 barely managed 1%. But it would appear that the junior market is actually been benefitted by the departure of all the “loser” companies, and leaving us with the strongest. This survival of the fittest may not seem intuitive, but while AIM rises one should perhaps not be either complaining or questioning.
Hydrogen Utopia
To end the week Hydrogen Utopia (HUI) announced the very sad news that its Non Executive Chairman Simon Mann has died. Having first interviewed him for the company, and then met him on many occasions, he was not only someone in a leading corporate role, but also someone who was a Boys’ Own hero. Perhaps the best tribute to him will be HUI getting waste plastic to hydrogen technology over the line as quickly as possible. Clearly, from recent corporate statements, it will not be governments who drive solutions to the waste plastic / renewable energy issue, but the private sector. Indeed, away from politicians and their pay to pollute solution, there are certainly innovative companies, who given the right encouragement and finance could drive things forward. With HUI shares now at just a penny, and with the prospect of its Ohrid Organics medical cannabis delivering substantial income from the summer, HUI has the prospect of bouncing back from the passing of Simon Mann.
Stocks Rising On News
It is logical that if the AIM All Share managed a 4% rise this week, it would have come off the back of a decent amount of positive corporate news. This was largely the case, with the biggest surprise being delivered by Symphony Environmental (SYM). Here the global specialist that makes plastic and rubber products “smarter, safer and sustainable”, announced that it has raised £2.5 million pursuant to an equity subscription by Quantum Leap Capital (“Quantum”) based in Vermont, USA. But it was not just a proper amount of money entering its bank account that was well received by the market, but also the way that the subscription price was 20p a share. This would no doubt have upset the bears, who would have thought they could sit back indefinitely on a stock that was heading just one way. Instead, the shares rocketed on the news ending the week at 7.25p, and capitalising the company at £16m, underlining market acceptance of the deal.
CT Automotive (CTA), a designer, developer and supplier of interior components to the global automotive industry, saw its shares jump 55% on the week as it announced its results for the year ended 31 December 2024. This came off the back of profits standing at $7.5 million in 2024, up 26% from 2023, even with lower revenues. Given the slings and arrows of tariffs, the aftermath of COVID, and the international basis of the business, the company has done well to negotiate a lot of moving parts.
Eco Buildings Group (ECO) the modular construction company, provided an operational update on its newly formed Senegalese subsidiary, Eco Buildings Senegal LLC, a joint venture with local partner G2 Invest Group. The company which could be regarded as the Ikea of modular construction, looks as though it is finally getting somewhere after various geographical forays in far flung places. The main problem apparently was that the company had a chicken and egg problem with orders, in that it could not fulfil them without proper financing first. It would appear that this issue has been solved with the Senegalese partnership. The shares rose 40% on the week, and look finally to be on their way.
I released an interview with Andy Carroll of Mosman Oil & Gas (MSMN) on April 30, and the shares closed the day at 0.042p. Since then they have progressed to 0.065p, not only off the back of what was an excellent interview, but also the news that has been delivered since.
This week the helium, hydrogen and hydrocarbon exploration, development and production company, announced the drilling rig has been mobilised on the Vecta project, Colorado, USA, at which Mosman has a 20% working interest. It also revealed the first estimate of helium and hydrocarbon volumes at the Sagebrush Project in Colorado, US. This was maiden C2 net best estimate Contingent Resources of 205 million cubic feet (mmcf) of helium and 1.7 billion cubic feet (bcf) of hydrocarbon gas. The shares ended the week up a solid 39%.
Vast Resources (VAST), the AIM quoted mining company, announced that further to the announcement of 25 April 2025, regarding the successful release of the Historic Parcel, the Company is now in receipt of the final packing list post the Kimberly Process inspection. VAST said that the sorting process has revealed an additional quantity of stones in the sealed historic parcels, the existence of which was previously unknown to the board of directors of Vast. This Additional Parcel contains 6,055.35 carats of gem quality stones, which, together with the rest of the consignment, are currently in Dubai for final sorting in preparation for cleaning and further preparation for their sale. Shares of VAST are up nearly 5x since it was noted in January that the CEO had lent €500k to the company, something that no one would do unless they were very sure of themselves. Of course, the rise in the stock has caught out the bears who are now panicking and will get their lackeys to make up any story they can to get the stock price down. Alas, it looks like the more they beat their heads against the wall, the more VAST shares will go up. It has been an almighty bear squeeze fair and square. Go and make up some negative / defamatory mumbo jumbo for which there is no redress, on a different company.
Smarter Web Company (SWC) is another company which has attracted crackpot / defamatory comments in an attempt to get the share price down, from known failed parties. But rather than get the share price down, SWC ended up over 360% and now has a market cap of some £37m, enough to be above the clouds from much of the psychotic snipes that permeate the small end of the London stock market. The company announced this week it had bought Bitcoin, and good luck to it on its treasury strategy. We need all the winners we can get especially with a Labour government, without them being blighted by 20th century style gutter press comments. Credible analysis please, rather than personal jibes and selective use of fact and fiction.
Stocks Rising On No News
With Bitcoin back above $100k, we have had the pleasure of seeing decent gains for crypto sensitive plays Coinsilium (AQSE:COIN), and KR1 (AQSE:KR1). One would have expected Tap (AQSE:TAP) to be a winner as well, in that it is a crypto trading app. Alas it is still coming to grips with how to communicate its plus points in the listed environment. Although at the end of March Cloudcoco Group (CLCO) a provider of managed IT services and communications solutions announced that group pretax loss has widened to £3.4 million in the year to September 30 from £2.6m, the stock rose 63% on the week. It is the type of rebound we have seen on late when a company says it is going to de-list. Indeed, the group’s mention of “plc costs”, a.k.a. the complete rip off of being listed, one would imagine shareholders are in the brace position on this, as well as how the business will move next.
First Class Metals (FCM) rose a further 60% as it recovers from the stock market’s schoolyard bullying squad (of which there are several), which obviously is not only designed to kick a company when it is down, but also to attempt to prevent it raising finance. In this case FCM assured the market at the beginning of May it was working on the second tranche of funding it was seeking.
Another company rising in the wake of recent news, but no fresh news was TNE (TNE), the energy transition company focused on developing clean energy projects to drive industrial decarbonisation for clients with international business operations, who commenced its first day of dealings at the end of April. While I am not a fan of anything associated with Net Zero, or Woke Energy as I regard it, good luck to TNE with a 56% share price rise on the week.
Although I still have PTSD from hearing about Contango (CGO) and its wash plant a couple of years back, this year we have had positive strategic investor news regarding Muchesu and royalties due to the company. This means that the 29% rise in the stock seems to be in line with the improving fundamentals.
The Question of Pri0r1ty
Finally, a word or two about Pri0r1ty Intelligence Group (PR1). I have a soft spot for the company, as it is in the area that I have a close interest in. The company listed as an artificial intelligence-driven software-as-a-service solution for small and medium enterprises. Its said its ‘Priority Advisor’ platform can be used by businesses to engage investors, customers and other stakeholders via websites, instant messaging and email. Since the RTO at the end of December the company has announced significant partnerships, which from what has already been announced should be enough to deliver decent revenues / growth. While I would not have promoted the company in the way that PR1 has so far, the current market cap and share price is harsh even by cynical London stock market standards.
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.
