The Trolls
This week I noticed something which I perhaps should have noticed earlier: the difference between the real world and the online world. In the real world I am treated as you might expect someone in late middle age (59) to be treated. People listen, they respond politely, even if they disagree with an opinion. There is a respect that when young I would have given to someone of my age. Overall, it is a good place to be.
However, it would appear that online I verge on being the devil incarnate. All sorts of accusations come in: defamatory, rude, unfounded, and above all, malicious. They are designed to be damaging, and perhaps to get people to question my mild-mannered everyday real world demeanour. What is the purpose of all of this? To prove who is top dog, something very important if you are a keyboard warrior.
Speaking of top dog, I am reminded of my school days as far as all of this is concerned, with bullies in the playground vying for supremacy. But rather than the playground the arena is the small cap end of the London stock market. Alas, this is an ever shrinking playing field, and the runners and riders are ever more keen to maintain their share of the spoils.
Amazing AI
The reason for the first three paragraphs in today’s Week In Small Caps was the aftermath of my tweet regarding Amazing AI (AQSE:AAI) on Friday. At one point the shares were up 75%, quite a feat given the way that Bitcoin (in which it has a trading strategy) was down another 5% on the day. All its Crypto Treasury Strategy peers have also been routed. But AAI was up after falling sharply over the past few weeks. Unfortunately, this little piece of optimism did not go down well with the trolls who pointed out that even after the day’s rebound the shares are still well down on where they were in the summer. Fair point. But the tweet was only referring to the rebound on the day, which was the aberration in the market.
I have been on X for 16 years, and have recently overtaken the Investors Chronicle in the number of followers. Tweeting is kind of something I enjoy and strive to deliver the best information and content. Rather than shooting the messenger, it may be best to see whether AAI continues its rebound, and delivers the kind of Crypto 3.0 strategy it has been promising. Certainly, if it does a £1.2m market cap including a US lending business will appear cheap. And as I have stated before the company is in a far better place than the buy and hold BTC plays, most of whom will be forced to de-list as under stock market rules they do not have proportionate business.
WeCap / WeShop
This week saw the long awaited IPO of WeShop (WSHP) in the US. At one point shares of WSHP were up some 500%. However, the share price performance of WeCap (AQSE:WCAP) not only endured a rug pull down to the 1.7p zone, it is still at 2.4p behaving as if nothing special has really happened. While on X there are lots of back of fag packet see through valuations of what WCAP’s market cap should now be given its WSHP holding, what we do know is that at 2.4p the valuation is a joke. The situation has not been helped by TR1s from our friends at Peel Hunt who have reduced their stake in WCAP from near 20% to under 10%. Clearly, this has depressed the share price, and it will be interesting to see when they have got out whether the valuation of WCAP will rise to what it should be. Certainly, Peel Hunt’s intervention will have let bears in the stock off the hook, and those who believed that WCAP would never IPO, or be a success in terms of its social commerce model. As a footnote one should keep an eye on, if / when WCAP shares in the UK are allowed to take off, Hot Rocks (HRIP) has 37,500 Class A ordinary shares in WeShop.
Aquis Showcase
This week I briefly attended the Aquis Showcase, and was disappointed that there was no merchandise to take back home for my kids, or at least none that I saw other than cupcakes. That said, I was not necessarily in attendance just for any freebies. Indeed, the companies that I happen to like in terms of those who have the best upside are those whose management impress. I had a quick word with Tim McCarthy, Chairman of Incanthera (AQSE:INC) and the prospects for the company’s Skin+CELL’s Vitamin B3 Skincare range. I am hoping that this could make me look 10 years younger. If the product is a winner is it is not factored into the current share price.
I also bumped into Ippolito Cattaneo, CEO of Ajax Resources (AQSE:AJAX). He has proved to be most impressive in acquiring assets for the company at bargain basement prices, even in the current environment. The latest news was an update on the Paguanta Project in Chile on Wednesday, plus progress with its exploration activities at its Eureka Gold and Copper Project in Argentina. Shares of AJAX were up 19% on the week, and one would expect further gains as more canny investors buy into the story.
Another young and thrusting corporate executive on Aquis who attended the showcase is Farzad Peyman of NYCE International PLC (AQUIS: NYCE). This week’s news from the company was the appointment of Alex Crockford as Chief Commercial Officer (CCO). The company said that Alex joined NYCE in September and has since played a key role in driving commercial expansion, supplier partnerships, and marketplace engagement across the global gaming sector. Indeed, there is so much at the marketplace it is worth looking at nyceint.com/marketplace. There is a lot going on at the company for a market cap of less than £1m.
GS Chain
One of the biggest stock risers of the week was GS Chain (GSC), in a week when the cupboard was relatively bare thanks to the run up to the Kamikaze Budget. But of course Reeves and friends hate the stock market, all those who work in it, and invest in it and want to see it fail. If your look at it this way, they are doing a great job. As far as GS Chain is concerned, it is a rare jewel on the London stock market in terms of being a main board listed shell. Clearly, one or two people have noticed this, with director share buying announced this week to the tune of £300,000. One does not buy this amount of stock by accident, and presuming the company will do a deal to give it a market cap of £30m to stay on the main market, the current market cap at £1.8m is on the cheap side. Watch this space.
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.
