AIM: New Highs For The Year
Although it is as fashionable to complain about the state of the stock market as the weather, the AIM All Share this week did reach a new high for 2025, the best since January.
It was also up another 1%, meaning that the rise since the tariff lows of last month could almost be described as relentless: well over 20%. This is all the more of an achievement as of course, the costs of being listed, and the Kafkaesque red tape continue. The ongoing defamatory blogging from ranting, crackpot counterparties with no one stopping them and no right of reply continue. And I have not seen any great surge in the quality of the other service providers where the used car salesman and cowboys also continue. That said, it is even more of an achievement for the small caps to rocket given such a backdrop, and in the wake of so many de-listings in the recent past.
Trying Harder
One of the reasons behind the rebound, even before the tariff relief of the past month has been the way that companies and their directors have had to up their game or die. Strategies for survival have included lending their companies significant amounts of cash, such as at Vast Resources (VAST) in January, raising significant amounts of cash such as Oxford Biodynamics (OBD) and Metals One (MET1), major reboots such as Gfinity (GFIN), or bringing in a sector rock star such as Coinsilium (AQSE:COIN), Fragrant Prosperity (FPP) and Capai (CPAI). Of course, we are in peak AI buzzword currently, and have been for the past year. But there is the hint from companies like some of the aforementioned and The Smarter Web (SWC), that the Bitcoin Treasury strategy is the flavour of the moment. But perhaps the best strategy is for one company to win from the gains of another, for instance as the big win for 80M (80M) via its 17% holding in MET1 whose current market cap has soared to £21m.
Solvonis Therapeutics
A company which has combined some of the points discussed above and is ready to go after a £2m fundraise this week, is Solvonis (SVNS), the former Graft Polymer. Here we have on the face of it a company which could do for alcohol addiction, what the weight loss jab companies have done for obesity. The key breakthrough for the weight loss brigade was to be a part of pharma that addresses large unmet needs, rather than the so called specific orphan ones. Of course, obesity and alcohol abuse have numbers in the billions of population. A company like SVNS when it cracks Alcohol Abuse Disorder (AUD), with two candidates. One presumes that the late George Best would have been proud of the progress here.
AWKN-001 is a Phase 3 novel investigational combination therapy for severe AUD with targeted regulatory pathways in the UK and EU that may confer up to 10 years of regulatory data and market protection.
AWKN-002 is a proprietary Phase 2b planning sublingual/buccal esketamine formulation under development for moderate to severe AUD.
Riverfort Global / Tooru
Another reboot / refocus situation which could and should flourish is the RTO between Riverfort Global (RGO) and S-Ventures (AQSE:SVEN) portfolio of wellness brands, soon to be named Tooru. If nothing else, the market, while obsessed with AI and Bitcoin Treasury, does actually appreciate a company with a business or businesses, and one that will deliver growth and profitability. The sizzle here is bringing together RGO’s funding capability, as well as SVEN with its distribution channels to the likes of Ocado and Holland & Barratt. Tooru should come to AIM after the GM on May 27th.
Stocks Rising On News
Just for a change there was a stock rising on no news, that released a RNS saying that there was no news, providing news, so to speak, was Belluscura (BELL). Interestingly enough, the shares tripled after being mentioned as a technical buy here at Zakstraderscafe in the Bulletin Board Heroes, with a 1p target on Monday. They peaked at 1.85p the following day. It was clear from the chart there had been an overshoot on the downside below the 0.6p zone. Of course, having to issue a “speeding ticket” RNS is one of the most ridiculous aspects of the London stock market. It is a miracle when a company’s shares rise more than 10% in a day, only for the powers that be to force it to say it knows of no reason why the stock should be rising. The reason is that it is on the stock market, where stocks are supposed to rise. This is all Monty Python meets Alice Wonderland and should be stopped. If nothing else, an explanation when the share price falls does at least make sense for the suffering of shareholders.
Tao Alpha (TAO), said it was changing its name from Streaks AI (STK), with the change of its “strategic vision of developing fully automated revenue generating AI agents.” Of course, we all love AI agents, especially the automated revenue generating ones, as the company moves to “seize emerging opportunities within Bittensor’s AI economy.”
After a rather long gestation period, CAP-XX (CPX) finally hit the big time in the form of a design win with a major Asian-based multinational conglomerate and provider of advanced audio solutions. CPX said this underscores its continued innovation and expanding presence in high-growth technology sectors. It could also be said that the business model / premise of the company has been validated. The shares were up 51% on the week, and one would expect more given the significance of this deal.
It is always good when a company that persistently gets crackpot criticism, and very often on the basis of arbitrary personal dislike, rather than serious analysis. Therefore, the sharp rise in Eden Research (EDEN) shares by 49% was all the more pleasurable. The catalyst here was the developer of biopesticides receiving approval in California for its fungicide Mevalone, which is for the control of powdery mildew in grapes.
Corcel (CRCL) was also up nearly 50% as the energy company announce that, it has conditionally acquired an additional 30% gross interest in its operated Block KON-16 in the Kwanza Basin, onshore Angola and signed a binding heads of terms for a strategic alliance with Sintana Energy. Shares of CRCL have been delivering what looked to be an extended turnaround since last summer, with this week’s double news likely to accelerate the process as the minnow starts to give off larger company vibes.
Metals One (MET1) celebrated notching up a 10x return since the start of the year, with news it has signed an exclusive term sheet for the conditional acquisition of an exploration lease over the Swales Gold Property in Nevada, USA, situated within the prolific Carlin Gold Trend, with an option to purchase Swales. Of course, the shares ended the week at 48p versus the technical analysis call here at Zakstraderscafe at 2p. It is funny how critics of charting forget these kind of calls.
Stocks Rising On No New News
Capai (CPAI) managed a 60% rise this week, with the last significant news coming in the form of the refined operating strategy in April, following the appointment of Professor Ronjon Nag. Europa Oil & Gas (EOG) rose 45% this week, with the last we heard from the company being an award of options on April 9. Traditionally, when good things are about to happen for a company on the market, options are issued at a discreet time distance of a month or two. Data transfer company Cirata (CRTA) delivered a trading statement last month, as well as an options RNS. With the 42% share price rise this week, it looks as though the company may be putting the difficulties of the past behind it, and perhaps is looking forward to fresh bookings news. Cloudbreak (CDL) announced on May 2 that director Andrew Male was saying goodbye. The result this week was a further improvement for the shares by 40%. Cassell Capital (CASS) continued to prove that a name change is as good as a rest in January. The former Guild Esports, announced in October that California-based investment management company DCB Sports LLC has bought all of Guild’s assets for £100,000 and assumed the company’s whole £2 million in liabilities. ASA International Group (ASAI), announced a Q1 2025 Business Update at the end of April. one of the world’s largest international microfinance institutions, noting a robust start to 2025, continuing the strong performance seen in 2024. The shares were up 32% this week.
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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.
