Trump Does Not Do A TACO
It was generally announced that strikes on Iran were supposed to happen on Thursday. But instead there was a delay of some 48 hours. In this case though, there was plenty of time to go short of indices and cryptos, and long of commodities, especially oil. Indeed, if you look at the recent Trump vs the financial markets, he has been a trader’s friend. For instance, he has single handedly lit a fire under explorer / developers, especially in the small cap space. Ironically, the TACO trade (Trump Always Chickens Out) did not happen this weekend, but usually over the past year, and especially with regard to tariffs, any crackpot announcement emanating from The Donald, has actually provided an excellent buy the dip opportunity.
Of course, there are plenty of people who hate democratically elected President Trump more than they hate tyrants, despots, dictators, and probably even more than traffic wardens, but for investors and traders he has been helpful to date. A quick resolution in Iran in coming days, may mean that this continues to be the case. What would be particularly interesting is if the kneejerk reactions on weekend financial spreadbetting markets turn out to be the buy point for the markets marked down, and the sell point for those who rallied. If damage in the wake of the Iranian strike proves to be limited, and internally there is anything less than chaos, all of this could be a military show of strength that does not upset the apple cart too greatly. That said, those who went to Dubai’s tax haven may not feel that the risk / reward of the strategy was worth it given that after all, they are sitting very near to a geopolitical cauldron.
This Week’s Risers
I cover Aquis stocks, largely on the basis that most in the market do not care about the exchange, and that most of the time hardly anything happens. The good news about this state of affairs that no one seems to be bothered about, including Aquis itself, is that when there are highlights, they really stand out. For instance, how could there be a better small cap story than Kwasi “Mini Budget” Kwarteng, the Former Chancellor of the Exchequer, becoming Executive Chairman of Stack BTC Plc (AQSE:STAK), a UK-based company focused on building a portfolio of high-quality, cash-generative businesses, alongside a Bitcoin treasury. Obviously, the Bitcoin treasury part of the strategy is currently about as popular as Keir Starmer, but if nothing else we are all dying to see what businesses Kwasi and friends buy with the £2m fundraise they have just completed.
The other big Aquis riser of the week, has been its riser of the year, Delta Gold (AQSE:DGQ), a company with the right quantum buzzword at the right time. While one is not necessarily sure if the company will in the end live up to the buzzword, or the soaring share price, at the moment it does not matter at all. The shares have already rocketed from under 10p in December, and have hit our best case 50p plus target. Indeed, we could have another burst by the end of this month up to 75p, while we remain on the right side of 50p. The presence of Purebond on the shareholder register, who were in early doors on Guardian Metal (GMET), is certainly an added catalyst. One might consider that DGQ could be the Smarter Web (SWC) of 2026, but without the eventual share price collapse…
Away from the Kalahari of liquidity that is Aquis, we move to perhaps more normal fayre. IQE (IQE) led the way on takeover speculation, despite the way that until recently the advanced compound semiconductor wafer products and material solutions has not exactly been flavour of the month. At least the shares have recently blown the doors off both the 11p and 15p technical targets set here at Zaks Traders Café for them. Although shares of Anglesey Mining (AYM) were up 61% on the week, one might have thought that the UK minerals exploration and development company announcing it has successfully eliminated liabilities totalling approximately £4 million from the Company’s balance sheet might have created an even bigger splash. Perhaps they should review their PR strategy? That said, after being mentioned here today, they will probably soar anyway. Above the latest chart gap at 5.5p we are looking for 11p as soon as the end of this month, versus 7.25p on Friday.
One of the things I like to do with new / cash strapped small cap companies is to help them get an audience, and to do so “on the house”. Sometimes this “don’t forget me when you are famous” gesture works, and sometimes it does not. It is certainly the case that now Altona (REE) is in the limelight, with the company singing its own praises quite rightly in the way of US government funding. The shares have been called up here at Zaks Traders Café from the lowest levels under 1.5p, with 1.9p, 2.7p, and 3.8p targets all hit in recent weeks. I note how every one and their mother has taken the credit for “spotting” this situation, and presumably the same can be said about confirmation of the US funding, but at least from a charting perspective, you heard it here first. Above 3.5p, former summer 2023 resistance at 5p could be on tap by the end of March.
Up nearly 40% this week on no new news was Cindrigo (CINH). Since listing the shares have certainly underperformed, largely on the basis that no one has heard of the company, it has a weird name, and its chosen field of geothermal energy is about as interesting as watching paint dry. That said, this week the shares have delivered a turnaround, helped along by mentions in my Bulletin Board Heroes video. Above the latest broken 50 day moving average level of 7p, we are looking at 13p by the end of March. Who needs a PR company when you have Zaks Trader’s Café talking about you?
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.
