Crackpot Commentary
I was asked during the week who I was referring to when mentioning those who deliver “crackpot” commentary on the stock market. In theory, there could be many candidates. For instance, it could be those that write for the capitalism hating Financial Times. Or the lads and lasses who have risen up the greasy pole of journalism to get to the nationals / broadsheets. They could be writing about anything including the opening of a supermarket, but this week it is the stock market. There are also those who have a finance background (helpful), and then get to write in the mainstream media because the companies they work for are important / advertise. But they are painfully dull, and only talk their own book.
That said, I am not referring to any of the above. I am referring to those who either deliberately move to undermine small companies – for a living, or are negligent as to the consequences of such actions. There’s the puerile name calling, and shameless pretence of moral authority that would make even Don Corleone blush. It also totally undermines any credibility of the source.
They also apparently pick on companies and people on a random basis: bad companies / people ignored, good ones trashed, good ones ignored. They might pick on someone because they are posh, not posh, rich, or just do not engage with them. All the luck of the draw, unless obviously of a high clickbait rating.
Obviously, one cannot name names as such folks are rather less good at taking it rather than giving it, and also apparently are part of the City establishment. This may explain why now more than ever, the London stock market is in crisis, and only those with very thick skins or very deep pockets would consider life on the public markets. I suppose it may have to be reserved for those with a very good concept too.
Fundraises
In the recent past this has included the Bitcoin Treasury brigade a year ago. Then the critical metals, and of late during the Iran debacle, oil and gas, plus helium. As we head into high summer though, it would appear that the London market is looking for a big, new idea. Unfortunately, unlike the US market we do not have the AI / tech angle. That said, MedPal (MPAL), the UK digital health and AI company, is on the zeitgeist as far as its tech, licenses and in the run up to the launch of the oral weight loss table, Wegovy, on Monday. Also in the run up to Wegovy, MPAL has taken advantage of heightened interest in the weight loss area with a £5m raise. This was a canny move in the sense that the last thing a growing company needs is to be underfunded. We now await next week, and presumably massive orders for oral Wegovy as everyone wants to get beach body ready.
There was a lot of fundraising this week, almost as if some companies wanted to make sure they were all cashed up for the summer doldrums. Of particular note was Helix Exploration (HEX). It is perhaps a shame that the company did not raise back in April when the shares were double the level now at 23p. Presumably, the helium producer would suggest that the acquisition opportunity of the Keyes Helium Complex was not available then. I suppose some might say that HEX should have had more than enough to execute with already purchased assets. That said, the concept of a land grab in the helium space is a strong one, and has been underlined of late by sector peer, Pulsar Helium (PLSR).
Finally, in recent sessions I have been getting (almost) excited that the United Oil & Gas (UOG) was rising, albeit against the recent fall in the crude oil price that made the rise all the more impressive. However, I have stopped myself in recent charting coverage in getting too excited in case we get the kind of bolt from the blue placing that our friends at Predator (PRG) tend to serve. However, although the worst happened and UOG did what it does best – raise cash, the shares actually ended up on Friday. So perhaps the run up to the all important farm-out of the Walton-Morant Licence is a good time to buy into the story.
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.
