{"id":116384,"title":"Trader’s Café With Zak Mir: The Week In Small Caps, Sunday 1st September 2024","publisher":"Share Talk","author":"sharetalk","published":"2024-09-01T10:18:33+00:00","modified":"2024-09-01T10:18:33+00:00","canonical_url":"https://www.share-talk.com/traders-cafe-with-zak-mir-the-week-in-small-caps-sunday-1st-september-2024/","markdown_url":"https://www.share-talk.com/traders-cafe-with-zak-mir-the-week-in-small-caps-sunday-1st-september-2024.md","json_url":"https://www.share-talk.com/traders-cafe-with-zak-mir-the-week-in-small-caps-sunday-1st-september-2024.json","category":"B2B","categories":["B2B","Blogs","Exclusive Interviews","Technology","Technology, Media & Telecoms"],"featured_image":"https://i0.wp.com/www.share-talk.com/wp-content/uploads/2023/11/zak-mir-1-750x406-1.jpg?fit=750%2C406&quality=89&ssl=1","format":"news","language":"en-GB","content":"**Autumn Term**\n\nWith the FTSE 100 within spitting distance of its best levels, and the assumption that the big players will be returning for the autumn term in the next week, we seem primed for a decent return of activity.\n\n[Author @ZaksTradersCafe](https://twitter.com/ZaksTradersCafe)\n\nThis along with the prospect of interest rate cuts on both side of the Atlantic in coming months also backs the idea that the final part of 2024 can end on a high. The only fly in the ointment is of course the promise of “painful” tax rises in the October budget.\n\n**Prosperity**\n\nThe Labour government have clearly chosen to fly in the face of the Churchill quote that “you cannot tax yourself to prosperity.” Of course, you can tax people enough to have dependency on the state. This will work very well, and is a key part of the socialist philosophy. If people are self sufficient the government has no power on them. In addition, we already know that just as in the 1970s, the rich will be leaving the country in their droves. It is difficult to argue against, if not encourage such a move. For the rest of us, a four day working week keeping 2 days pay appears to beckon.  It is no wonder that we have horror statistics regarding the percentage of the workforce who are unwilling or unable to work. There are correct, for most it is simply not worth it.\n\n**Sales And Marketing**\n\nOne of the gripes I have with regard to the PR / IR industry with regard to small cap companies is how much it is simply a sales and marketing exercise preying on CEOs, who usually are not acquainted with who they are dealing with, or what they should be getting as a service. For someone who has been around the block, it can very often be the case one can judge a company by the PR/IR they have chosen. This could be a box ticking service, an outright cheap service that delivers nothing, one that exaggerates its reach / following, or a mix of all of these. There is very little barrier to entry to this business, and it is occupied by cowboys, used car salesman, or of course, the posh City types.\n\nAs someone who has been a champion of small caps since the late 80s, well before I had any financial motivation, the most frustrating aspect is seeing companies not getting over the line because their comms are not up to scratch. Indeed, there are so many I would like to speak to, just to help them get on the right track – even if there was no further relationship after that. Perhaps a PR / IR advice service beckons?\n\nhttps://youtu.be/X6SIuM5h2x4?si=pFttJr1j5T1qILxA\n\n**Weekend Markets**\n\nOne of the things that I have been doing on Fridays with Steve Deacon of Biztech Markets is Weekend Markets. The format is partly two middle aged men trying to deliver banter that will not get them cancelled, but it is also attempting to deliver the kind of dispassionate analysis of stocks and markets that people might find useful. Just as important is the aim not to be boring, or deliver the kind generic plugging of companies one sees on most platforms.\n\n**Filtronic**\n\nAmong the small cap news of the week the highlight that was of mainstream news quality came from **Filtronic (FTC).** The revelation of an $8m order from SpaceX really had a sizzle, and the aerospace infrastructure group, was in turn able to boast that it will beat market expectations. The shares of this £173m market cap company are resting on their highs, with the promise of much more upside to come.\n\n**CyanConnode**\n\nA company which perhaps deserves to be the next Filtronic is** CyanConnode (CYAN). **The narrowband radio frequency mesh networks group, announce its  largest order to date from a global partner. This order nearly doubled its order book for India, increasing it from 6.6 million units to 13.1 million units, and solidifies its position in India’s nationwide smart metering rollout. It seems unfair that the market continues with its flat reaction to the company’s newsflow, given that we know if nothing else, what a massive market India is.\n\n**Eco (Atlantic)**\n\nThere were also a couple of companies that appear to be turning the corner enough for even a stubborn market to acknowledge the improvement, and in turn start to value it appropriately. The first was **Eco (Atlantic) (ECO).** Here the announcement of the completion of Eco’s farm-out agreement with TotalEnergies and QatarEnergy, which will see Eco receive US$8.3 million while still maintaining a material interest in On Block 3B/4B, reminds the market that the company is certainly heading in the right direction.\n\n**Andrada**\n\n**Andrada Mining (ATM),** the African critical raw materials producer revealed a massive improvement within its audited financial results for the 2024 financial year ended 29 February 2024. Revenue increased by 83% and gross profit increased by over 100% to £1.7m (FY 2023: loss £0.7m). Even on its on this marks a pivot point for the underappreciate company, one that has perhaps suffered in its market perception partly because it has not been great at communicating to the market the sprawling yet scalable potential of its business.\n\n**Helix Exploration**\n\nRather gratifyingly, there were a couple of recent stock market entrants who have continued to prove that they are companies in a hurry, and are aware that these days investors do not expect them to hang around. The first was **Helix Exploration (HEX),** a company whose shares have already had a good run, but given the latest news deserve to have an even better one. the helium exploration and development company focused on helium deposits within the ‘Montana Helium Fairway’, reported the completion of drilling activities on the Clink #1 well at the Ingomar Dome Project. The key here is that HEX said it was delighted to report the safe and successful completion of the drilling of its maiden exploration well at Clink #1 delivered ahead of time and below budget. It does not really get better than that at this stage.\n\n**Rome Resources**\n\nAnother company gathering momentum so soon after coming to market, where one can almost smell the tin, is **Rome Resources (RMR). **News here came from the latest diamond core drilling operations on its Kalayi prospect within the Bisie North Projects. The company noted a significant intersection of mineralisation early in the drilling campaign, with drillsite analysis confirming this as being as tin-bearing. The shares appear all the more attractive near the floor of their initial trading range under 0.3p.\n\n**Georgina Energy**\n\nFinally, it is on to** Georgina Energy (GEX), **another newbie, which started off well, but was then hit by unfounded and personal slurs against the company, apparently the only way that bears can successfully attack a small cap company these days. These shares have now stabilised close to the 12.5p initial price, and one would expect them to return to their best levels soon, now that the weak hands have been scared off. Indeed, such situations normally offer a decent opportunity. This week the company announced progress on the evaluation of additional high potential targets for its well re-entry and development program, and an update on its core Hussar and Mt Winter prospects. Such an announcement was a “business as usual” affair, nothing to do with those who wish to shoot down the now all too few companies choosing to list on the London market.\n\n![](https://www.share-talk.com/wp-content/uploads/2023/11/Zak-Mir-@ZaksTradersCafe-_-Twitter-Google-Chrome-2022-09-11-at-11.06.02-AM-291x300.jpeg)\n\n[Author @ZaksTradersCafe](https://twitter.com/ZaksTradersCafe)\n\n**Disclaimer & Declaration of Interest:**\n\nThe 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"}