Red Maps
It was June 1975, not the following heatwave summer of 1976 that piqued my interest in weather / climate at the age of 8, and I have not looked back since. Indeed, I kept a weather diary, going out to a shaded tree in the garden. Indeed, after some time I would know the temperature before I got to the tree, a skill that subsequently proved to be quite useful when predicting the stock market. Of course, I remember the summer of 1976 very well, and rather than the negativity in the media these day, simply enjoy good weather. Or at the moment, exceptional weather. This is rather important if you live at 52 degrees latitude, where sunlight and warmth are always going to be at a premium. And of course, we are reminded of the statistic that even with all the post industrial revolution warming, we are still not as warm as we were at the time of the Vikings. One wonders how red they would have drawn their maximum temperature maps – perhaps the colour of molten lava. By the way, what have high temperature in Paris got to do with banning drinking? We are in the age of state overreach everyhere.
SunCap Forum
While my enthusiasm for listening and learning about investment and investment opportunities has not changed, it is the case that as time goes by one might be making rather less effort in terms of seeking such things out than in one’s youth. However, I did fly to Lisbon on Tuesday, where close by in Cascais I attended the SunCap Forum. I knew about this event some weeks in advance, and decided it was too good to miss. Pulsar Helium (PLSR), Rift Helium (RIFT), MedPal (MPAL) and Metals One (MET1) were the leading lights in my mind, and it helped that Edmond De Rothschild were one of the event sponsors along with Vox Markets and Pulsar. But perhaps as much as all of this it was the amount of money in the room. Companies presenting did get their shares bought into, sometime as they were speaking, and it was clear that this was not like most of the events in the UK which I used to attend, but no longer bother with (and cannot name!). Of course, as well as investors at the event, many of the leading brokers were at Cascais, including the lads from Clear Capital and Oak Securities. I am not one of the lads, but we all had a good laugh anyway.
This Week’s Risers
The big rebound situation this week was Ondo Insurtech (ONDO). It has transformed itself from being a stock market darling, to being a stock market Keir Starmer. Presumably, given the recovery in the shares in recent days, it has been financing concerns that have caused the shares to slide. This is said on the basis that we have seen a sharp rebound in the stock off the back of this week’s refinancing / equity fundraise. Alas, I have to say that on the way down for the shares as it announced deals with big name counterparties, there was normally a lack of detail on how much these deals would be worth to ONDO. Perhaps now that fresh cash has been raised, and presumably, lessons learned, we could see this week’s rally continue to the right side of 10p.
I do not think that I have ever covered Fletcher King (FLK), either on a fundamental or charting basis before. But the stock is highlighted today after the share price rise of 30% this week, after news the previous week that the company’s founder is to leave the board, and that there will be a special dividend from the property asset management group.
One would not have thought that the current environment would be the best for big ticket consumer goods, but it would appear that when the going gets tough the tough buy kitchenware brands. ProCook (PROC) delivered a 65% pretax profits jump, off the back of new store openings. Indeed, having the mettle to open new stores these days, rather than just relying on online.
The Halo Minerals Effect
One of the things about the stock market that is fascinating is how new companies to the market navigate the first few months of their post IPO life. In the case of MedPal (MPAL), the first print just after 8am at its London Stock Exchange was “up 47%”. This kind of reaction is normally something where a lot of concerted work has been done before hand, with the PR, brokers and of course directly by management. Then once the groundwork is done it can become a self-fuelling machine, whereby the shares are liquid, have a decent turnover, and everyone is happy.
What has been interesting at Halo Minerals (HALO) is the way that with recent interview and social media initiatives, as well as the excellent newsflow such as May’s Beach Mining Permit Application for Playa Verde. The initiation of independent equity research coverage by Equity Development has bolstered the profile of the copper development company focused on extracting critical minerals from legacy mining waste in Chile. The company appears to be sitting on a metaphorical gold mine, something which can be read about in the link: https://halominerals.co.uk/investors/analyst-research/
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.
