Rachel’s Bitcoin
Author @ZaksTradersCafe
Unfortunately, there are still not enough people who understand how this Labour Government works. The clue is partly in the name, it is not called New Labour. But the main, and so far highly successful policy to make everyone poorer, and therefore more likely to be a Labour voter, is still one that has not been understood. This point has been underlined by the story that Chancellor Rachel Reeves is looking to sell £5bn worth of Bitcoin (to fill a black hole). Normal logical would be that the BTC would be sold and then this would go to pay for the NHS (for a couple of weeks) or all those people with ADHD claiming sickness benefit. But no. The real reason to sell the BTC is to make sure that a few years down the line the £5bn value does not turn into £50bn or even £500bn. If that were the case then we would all be richer and vote Conservative, or perhaps Reform. Indeed, this is all reminiscent of Reeves’s less tearful predecessor, Gordon Brown, who sold part of our gold reserves at almost the lowest recent historic price. We are all familiar with the phrase, “beggar thy neighbour.” The Labour way is to beggar thyself.
Bitcoin Treasury Strategy Stocks
This week was an interesting head scratch moment for the BTS stocks in that we saw Bitcoin push to record highs at $123k, but no real follow through for the companies who have made it their business to hold the digital currency. In theory, the 20 plus (at a guess) companies who have got on the bandwagon should have seen their shares head back to new peaks. This is especially the case given the way that for many of them in the past couple of months they would be sitting on BTC profits of nearly 20% at best. A perfectly valid explanation would be the way that in order to keep their mNAV at attractive levels they have raised more cash to buy more BTC. The latest and perhaps best example has been Cel AI (CLAI), where under the guidance of Executive Chair, Olivia Edwards, the company raised a chunky £10m via Oak Securities. I interviewed Olivia during the week, and was treated to her goal of creating a £1bn market cap company with just one person. The way things are going for the London stock market, one hopes she can pull this off, we certainly need it.
Stocks Rising On News
The star of the show by some distance was a company not exactly famous for covering itself in glory, Empyrean Energy (EME). But not only did the shares rocket on news of a gas sale agreement, but they even held onto the bulk of their gains at 440%. Oxford BioDynamics (OBD) proved the power of IP, as it revealed that its test method was used in a Pfizer trial. The shares ended the week up 102%. I always enjoy it when crackpot commentators say a company is a zero, either as clickbait to back a short position or because they have a psychotic hatred of the management, or both. Being a zero is the category Technology Minerals (TM1) was to be, and may still have been, if it were not in receipt of £8.1m in funding to accelerate a Lithium-ion battery project. Of course, the crackpot commentator would now not correct their error, but just leave the defamation as its stands knowing that the company does not have the time or the resources to fight back. TM1 shares bounced 68% further away from being worth nothing on the week. Hamak Gold (HAMA) came up with one of the more enigmatic announcements one might be treated to, with the appointment of Dr Arthur Laffer. The man is a legend not only because he has a curve named after him, but also shaping US fiscal policy during the Reagan era and beyond. HAMA shares were up 50% this week.
Also up 50% was Argo Blockchain (ARB) where positive crypto developments in the US seem to have provided a decent read across for the crypto mining company. Can we dare to dream that ARB is back for good? Certainly, the macro environment would appear to be as on side as it could be. Eco Animal Health (EAH) was a winner as the veterinary products group boasted a strong second half to the year on cost reductions and a growing R&D pipeline. The prospect of a maiden MRE at Pepas, and a wider exploration programme boosted Orosur Mining (OMI) by a third. One looks forward to CEO Brad George having the time to talk about these positive developments, now that he has hit the big time. Home testing specialist MyHealthChecked (MHC) jumped 30% on a deal with Boots, while Mkango (MKA) gained another 28% after revealing the production of its first recycled rare earth alloy earlier this month.
ACG Metals Limited (ACG) was up 18% this week as it announced its operations and capital structure update for the first half of 2025. Highlights here included FY2025 production guidance being upgraded from 30-33koz to 36-38koz AuEq, driven by strong operational improvements, including higher gold and silver recoveries. AISC by 13% to $1,060 oz from $1,218/oz in H1 2024. The company remains under the radar with investors so far, but there is every reason to believe it could be as in focus as stock market darling and fellow gold producer Thor Explorations (THX), sooner rather than latter.
Stocks Rising On No New News
It has been since the first week of May that we have heard anything significant from Harena (the old Citius Resources) (HREE), but the shares did jump 22.7% on the week. One presumes fresh news is on its way very soon. Ondo (ONDO) was up 20%, as we are in the run up to preliminary results from the claims prevention technology group on July 30. Investment company GS Chain (GSC) was up a whopping 118% this week on no new news, with the last we heard here being at the beginning of April when the company said it was looking for acquisition targets. Perhaps it has decided BTS is the way forward?
Predator (PRD) with its touchy feely CEO was up a chunky 104% on the week. The last we heard from the company was that it was debt free / fully funded, about 20 times in an RNS: “In Morocco we will update the market this month on the execution of the testing programme for the shallow “A Sand” in MOU-3, for which we are fully-funded.” Yes, definitely fully funded, so the shares can rally as the company will not deliver a placing. “However maintaining a debt-free status and increasing production revenues provides an important financial safety net.” We get the message.
Another company which was / is supposed to be a zero if you have a personal vendetta against management / former management, or have woken up on the wrong side of bed everyday for the past 30 years, is Versarien (VRS). The shares jumped 81% further away from being an alleged zero this week. Earlier this month the company signed a deal for South American graphene plastics. Fusion Antibodies (FAB) rose 31% on the week. The last significant news here was an pdate on the U.S. Patent for OptiMAL®. That was back in May, so presumably there is something new for investors to get their teeth into soon.
Audioboom (BOOM)
One of the few shares I own is Audioboom (BOOM), and judging by the performance of the stock, the nature of the news and the rating of the company, you can perhaps understand why I hardly own any shares. For me the issues here have been the way that the revenues / profits mean that at under £5 a share the company is fairly valued. Unless a big player wants to take it over, that is that. Luckily for me it would appear that BOOM is cognizant that its metrics are under par, hence the Adelicious acquisition. Nevertheless, it will take perhaps years for BOOM to get up there with the big players in its space. Long term hold, then.
Westminster Group (WSG)
I have been lucky enough to interview WSG a few times in the recent past, in fact, on the ever more frequent occasions when the company announces yet more contract wins. While the market seems to have pigeonholed the company as an Africa play, it is much more than this, with the UK government being one of its many and ever-increasing paymasters. The shares are up 47% so far this year, and it was surprising that this was not built upon given the announcement of a £1.15m extension contract.
Interviews:
Finally, just in case you missed them. This week I also interviewed Zenith Energy (ZEN) and Cake Box (CBOX).
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.
