Looking forward to 2024 it may be the case that the temptation to be overly negative about prospects is the one to avoid. This is despite or perhaps because of the way 2023 has been such a car crash.
At least blue chips were up 3%, despite all the negatives of inflation / cost of living crisis, and the massive tax burden. On this basis it is a miracle that we are not in deep recession. Fortunately it is a characteristic of the 2020s economy that its sectoral diversity means that the kind of 1970s style recession some may be fearing is likely to be avoided. There may not be much upside from a largely services based economy, but it does seem that the troughs are not that deep either.
United States Outperformance
The real pain and irritation comes from the way that while the headline performances of the blue chips and small caps were of small percentage gains, in the UK, especially given the S&P 500’s 24% rise, and 45% up for the Nasdaq. On this side of the pond it has been the liquidity issue which has really done at the damage. Investors have used the stock market as their ATM machine, whether or not the shares they are selling likely to be winners or losers. This has severely skewed the landscape, with babies being thrown out with bath water on an industrial scale. Good companies have seen their share prices towards the cash value. Normal / middling companies have seen their shares down by a half or two thirds with little effort. In addition, whereas in the past one could be on a PE of double digits, these days two or three times earnings, if there are any, can feel like a party.
Buy And Hold
Of course what we are supposed to do, like Warren Buffett is to be on the buy and hold strategy. The question is though, which stocks to buy and hold and which to job short term? In the small cap space though, where we are generally looking for growth/ future growth, aspects such as cash in the bank, speed of the journey to profitability, management, and sentiment all play a part. If one had to narrow it down to any of these factors in 2023, the cliche of cash being king had to be the winner given how torturous most of the fundraises looked to be. This point was clearly underlined by the dearth of IPOs. In small caps, one was lucky to raise a couple of million at best for such purposes.
Stocks To Watch
Given what a poor year it has been for the minnows, and given the lay of the land, why there is little reason to expect a sudden improvement, I have waited to see what some of my alleged contemporaries have listed as their stocks to watch for 2024 before taking the plunge. These sources are a mix of those who are clickbaiters, cowboys, used car salesman, sociopaths, holier than thou gurus, nerds, and those with no professional experience of the market, the latter very often from the legacy media. As well as the dubious chance to pick out the best of these picks, there is an advantage that I have always had, to combine the fundamental analysis with the technicals. This is important, as after more than a decade of the daily Bulletin Board Heroes video, it is clear that the charting can very often trump any other way of timing / calling small caps. Even more important, it is there to tell you when you have got it wrong.
80/20
This means that unlike others who may just highlight’s stock to be a winner at say 100 pence, and then leave you in the lurch, I will add in achievable chart based price targets and stop losses, so say 150p and 80p on a 100p share price respectively. This means that the chance of being left holding the baby on a situation which turns out to be a duster is greatly diminished. Indeed, this should mean that most will understand that when I say for instance, above 5 pence a stock could go to 10 pence when currently 6p. This does not mean they are still holding the stock when it is 2 pence. Ironically, I was heckled on this point just the other day by someone on X, who clearly did not read or understand the bit about “above.”
Technicals
It is all about using technicals to manage risk. 80/20 is a ratio which dominates our lives, and it is the case that with the correct money management 20% of a portfolio can still lead you to victory, even if only half the stocks turn out to be winners, Hopefully, with the mid price end of day close targets and stop losses in the 20 stocks below, the overall score will be positive in 2024. But it will not be easy while current stock market conditions prevail.
Types of Setups
It is typical of small caps that in terms of the landscape of the generally sub £100m market cap space that they fall into a few clear categories. The first is the binary bet, usually from a very low base. The BB of the moment is Helium One (HE1), where we are waiting for a couple of billion party balloons worth of gas, or not as the case may be. There are then (alas all too few) companies which have established themselves as growth plays, and are hence momentum situations. The obvious ones this year were biotech duo Hvivo (HVO) and Poolbeg (POLB), something made all the more enjoyable by the fact they are both in the biotech space. Apart from AI stocks, the big laggard in the UK in contrast with the US has been biotech.
2023 IPOs
Explorer / developers have been one of the more high profile situations in the small caps this year, with First Class Metals (FCM), Golden Metal Resources (GMET) and Fulcrum Metals (FMET) IPO’s of note.. In the latter part of the year it was Neo Energy (NEO) and Energy Pathways (EPP), who came to market. They all certainly deserve a round of applause in just being able to get listed, and paying all the costs of getting listed. The key with all of these is for the companies in question need to prove up / be sitting on so much resource, that the market will bid up the shares in anticipation.
Another category of stock which is hard to put one’s finger on, for obvious reasons is a “surprise” win by a company. It can be a discovery in the ground, like Empire Metals (EEE), a license like Celadon (CEL), a contract win such as recently with Filtronic (FTC). The other “surprise” can be a sudden market need, such as Optibiotix (OPTI), in the summer following the Aspartame cancer scare. It rather goes without saying that the main way of getting your stock price up in 2023 was to surprise the market (and perhaps yourself), with news so that even the shorters have to panic cover their positions. A way of not getting your shares up was to keep huffing and puffing regarding potential good news, so that even when it arrives the market has already factored it in.
Rabbit Out Of A Hat
A category that played a big role in at least some of the winners of 2023 was the ability of a company to pull a rabbit out of a hat, wrongfooting a cynical / negative market by proving its worth. One could argue that Destiny Pharma (DEST) did this twice in the last year, the first time in July with the return of the former Chairman, and then on positive data regarding its flagship XF-73. Given ongoing stock market conditions, small caps will need to engage in rabbit pulling of Magic Circle proportions during the course of 2024.
Falling Knives
Finally, and something which may be the real challenge for the coming year, is the falling knife. This is clearly related to the ATM issue described above, where shareholders or a shareholder, just want to head for the exit at all cost, no matter what the price is. The trick is obviously to work out whether after the rug pull the shares have got to a level which is just plain silly and from which there should be an appreciable rebound.
24 Stocks For 2024
- Acuity RM: 4.75p Target 12p Stop Loss 3.5p
One of the stumbling blocks that small cap companies have is the “roll out.” They can have the best product in the world, but the cost of sales and marketing, competition, product validation, and the ability to scale, can all be headwinds that only the best can overcome. Enter Acuity, a software group, which supplies the STREAM software platform for the Governance, Risk and Compliance market. As we enter 2024 it is clear that the company has managed to overcome the issues described above, something which suggests that the share price is clear for take off. Recent newsflow has underlined the prospect of this scenario, such as the company’s largest ever contract win, in this case from the UK Government. With such validation and contract size, one can assume that ACRM will be able to scale up internationally, something which at the present market cap of £6m certainly has not factored in.
- African Pioneer: 2.35p Target 4p Stop Loss 1.75p
The junior mining space, with its perennial funding concerns, and the inherent risk of exploration, has not exactly been the most popular in 2023. You had to be a company which discovered something world class that you might not necessarily have been looking for, Empire Metals (EEE), to really blow the lights out. Nevertheless, African Pioneer (AFP) did see its shares slightly up on the year, which in current market conditions represents a 50% plus outperformance. The trigger here, and it was a worthy one, came from news in October that mining giant First Quantum had exercised its license options. This meant that the exploration and resource development company with advanced projects in Namibia, Botswana, and Zambia, has had a serious validation and de-risking event. During the first earn In period First Quantum will prepare a Technical Report demonstrating an Indicated mineral resource of at least 300,000 tonnes of contained copper for First Quantum to earn a 51% shareholding in African Pioneer Zambia. Shares of AFP have risen since the First Quantum news, and one would expect further gains as the latter progresses its earn in work.
- Ananda Developments: 0.34p Target 1p Stop Loss 0.25p
Whether it is the ongoing opiate crisis, or whether enough water has passed under the bridge, it was clear in 2023 via companies like Celadon (CEL) and Ananda (ANA), that this was the year when medical cannabis finally came of age as far as investors were concerned. No one could say that this process has not been a slow burn, but now that the log jam over trepidation has been cleared, one would expect significant momentum to gather. This is especially the case for Ananda, with its “been there, done that” management, and multiple initiatives in the past 12 months to validate and fund its roll out. A highlight at ANA was acquisition of MRX, which has a proprietary method to formulate cannabis medicine. This was then finessed by funding from NHS Scotland for the MRX1 endometriosis trial, and ANA restructuring its debt in September. With all of this under the company’s belt this year, one can anticipate a re-rate for ANA off the back of newsflow such as last month’s drug supply agreement with the University of Edinburgh. The run up to a mainstream medical cannabis rollout appears compelling.
- Cadence Minerals (KDNC): 5.75p Target 12p Stop Loss 3.75p
Another of the flagship project companies, of which we have a few in this selection, it was notable that for Cadence the year began with a bang, with the shares rallying from near 9p through 17p. While the company is known for its flagship Amapa Iron Ore Project in Brazil, what gives it an advantage over many of its peers is the way that it is certainly not a one trick pony. We were reminded of this within the latest update from investee company European Metals, of which KDNC has 5.3%, something which actually led to a decent 16% rise in the share price on the last session of the year. But the big prize is certainly Amapa of which Cadence now owns 32.6% on a NPV of $949m. The last key event here came in the form of a MOU with Sinoma Tianjin Cement Industry Design & Research Institute Co Ltd. Sinoma is set to deliver a final proposal complete the definitive feasibility study on Amapa, and then a fixed price engineering procurement and construction contract for the project. At close to the low of the 2023 range, but with fundamental momentum here, one seems justified in regarding KDNC near their a base.
- CleanTech Lithium: 19.75p Target 40p Stop Loss 14.5p
Given the way that nearly a fifth of all new cars are now electric, one would have thought that any stock even vaguely related to lithium would have been roaring. Clearly, this has not been the case, although it should be said that for the beginning of 2023, shares of CleanTech (CTL) were very much on the front foot, as the market celebrated the way that the company was mobilising its assets. Highlights at the time included a scoping study confirming the potential of the Laguna Verde project, as well as the announcement of a proposed listing on the ASX. However, concerns over jurisdiction risk in Chile pulled the rug from under the shares, even though CTL was effectively set up to be a plug and play in that country. Subsequently, none of the market’s fears regarding Chile’s plans for its lithium industry proved to be founded. As we go into 2024, with the over £8m raise to advance its projects, we should see the shares rebound off their recent lows, if only on the basis of the merit of Laguna Verde and Francisco Basin.
- Critical Metals: 9.75p Target 25p Stop Loss 6p
At the start of 2023 shares of Critical Metals (CRTM) were very much on a high, boosted not only by the market’s enthusiasm for its flagship Molulu copper-cobalt project in the Democratic Republic of Congo, but also the dynamism of CEO Russell Fryer. Fast forward to October and the company said it entered into an offtake agreement with OM Metal & Resources SARL, for the sale of at least 20,000 tonnes of copper oxide ore. This month’s operational update underlined that the first ore sales are due by the end of Q1 2024. If you add in the sizzle from the latest 24-drill-hole campaign at Molulu, and the current share price vs 30p plus at the start of the year, CRTM not only seems the wrong price, but this is classic situation which underlines how short term traders have exited, just before the fundamental party is set to begin.
- DG Innovate: 0.19p Target 0.8p Stop Loss 0.13p
The aforementioned surprise factor, in the case of DGI, more akin to shock and awe, has already been at play with DG Innovate (DGI). Here a welcome fund raise, as well as the Tesla hires, should build a solid base for the EV and energy storage technologies company. While the stock is already up 5x since the news on December 11, once the bedwetters are out one would imagine the shares will be rather nearer to where they were at the beginning of 2021 at the end of 2024 than they are now.
- ECR Minerals: 0.27p Target 0.5p Stop Loss 0.2p
It was difficult to resistance including ECR Minerals (ECR) in this selection, if only for just one reason, Mike Whitlow. For those who are not familiar with the wonderful world of UK small caps, Whitlow is also known as a straight talking commentator on this area under the guise of Doc Holiday. Having been an investor in ECR, he was appointed COO in September. I was pleased to interview him earlier this month. It was interesting to appreciate the transformation from poacher to gamekeeper (or is it the other way round?) What will be worth taking note of at ECR is whether unlike so many others, Whitlow is as good as walking the walk, as talking the talk, given how much easier it is to be an armchair CEO, or a keyboard warrior these days. So far the omens look good, especially in the wake of the new discoveries announced at Lolworth in September, and the additional license application at Kondaparinga. It is also clear that Whitlow and the powers that be at ECR have caused the company to turn over a new leaf, and they are certainly running a tight ship.
- Eco Buildings: 13.5p Target 25p Stop Loss 9.5p
While the temptation after a gruelling year on the small cap market is to pick out this year’s winners, and hope that they will keep on going, such an attitude is not quite in the spirit of this investment class. What one wants to pick out is something at ground floor level both in value and expectations, with a scaleable business that has a massive addressable market. True, doing such a thing this time last year would not have not you very far. However, we are going into 2024 and not 2023. Enter Eco Buildings (ECO), where the hook is that the company could be described as the “Ikea of housebuilding.” Given that there is a world wide housing shortage, ECO’s prefabricated modular housing products appears to be right on the zeitgeist. This point has been underlined in the form of the latest news from the company regarding the start of production at its Albanian factory. The company, formerly known as Fox Marble has an order book of €114m, plenty to be getting on with, in the run up to further targeted expansion in Chile and Spain.
- Firering: 4.25p Target 7p Stop Loss 2.75p
It has not been a great year for “big project” small cap resources companies, something which is perfectly understandable, given cash concerns. Firering has not only been caught in this, but a relative hiatus in newsflow provided buyers with an excuse to sit on their hands at the exploration company focusing on critical minerals. What could and should be the driver for 2024, apart from the share price now being in the bargain basement section, is the prospect of a revival of operational activity. FRG stated in December that it has signed a drilling contract with FTE Drilling for a campaign at its flagship lithium – coltan Atex asset, which is to begin next month. The company has partnered with the Canada-headquartered FTE in a reverse circulation drilling programme at the asset in Ivory Coast. With results due from this by the end of Q1 2024, we have a decent time window, short term enough to attract fresh interest in the company. Given the relative weakness of the lithium price, it is now back to where it was trading in 2021, those getting into the best of the lithium plays could find themselves well geared up to recovery from stocks like Firering.
- First Class Metals: 6p Target 15p Stop Loss 4p
If there were awards for hard work and dedication then First Class Metals (FCM) would be one of the year’s top stock risers. Alas, in 2023 exploration companies, with the subtext extra funds being required in the wake of every other positive RNS, have had to battle hard both in real terms, and against the competition. That said, FCM has made it clear that all options are open as far as its portfolio of projects, with the mantra of it getting them drill ready as quickly as possible meaning that sentiment has been rather strongly towards the company than the modest £5m market cap would suggest. The latest newsflow underlines this, as the latest shareholder letter underlined: the company delivered on bringing four properties to a ‘Drill Ready Status’ and undertake a drill programme on one property in 2023. The icing on the cake in the letter was that the company will explore opportunities to secure third-party investment through ‘earn-ins,’ joint ventures, or potentially even corporate transactions.
- Hummingbird Resources: 10.25p Target 25p Stop Loss 7.5p
On the face of it, there may not be much reason to highlight multi-asset, multi-jurisdiction gold producing company, Hummingbird Resources (HUM), other than on the basis that the gold has gone above $2,000 oz, and looks set to stay at or even go to new record highs off the back of the potential interest rate cuts in the New Year. However, given current stock market conditions, such simple analysis is not usually enough for everyone even though HUM has said it is on track to produce 200,000 oz of gold in 2024. To facilitate this the company announced a $30m placement, something designed to get up to cruising altitude in terms of production. Given the lay of the land in terms of the underlying commodity, one would take the view that the timing is spot on. HUM should be in an ideal position to take advantage of what looks to be the great gold price break out of 2024.
13. hVIVO: 23.75p Target 45p Stop Loss 16p
Rather unfairly hVIVO (HVO) shares were forced to regroup after the massive rally seen at the time of the pandemic. Nevertheless, the massive 137% gain for 2023, generally accepting as having been an unforgiving year, only serves to underline the progress made. There is the prospect of much more to come given the way that at 23.75p we are still some way off the best levels of 2021, at 40p plus. The driver, as has been the case for the recent past is the drip drip of new contracts for the world leader in testing infectious and respiratory disease products. The latest one was a bumper affair, a £16.8m full-service contract with an existing top five global pharmaceutical client. This allowed HVO to announce that it is trading ahead of previous market expectations driven by margin expansion. Coverage in The Times of the company being one of the stocks of the year should do HVO no harm at all, although of course it is being included in this list that really counts!
14. Hydrogen Utopia: 3.3p Target 8p Stop Loss 2.5p
If nothing else, Hydrogen Utopia (HUI), a company specialising in turning non-recyclable mixed waste plastic into hydrogen and other carbon-free fuels, this year managed to move up from Aquis to the standard list this year should be enough to prove enough the merits of the company. But after the initial celebrations of the “upgrade” the market has been keen to focus on those perennial bugbears of funding and rollout of the first waste plastic to hydrogen plant. Perhaps understandably, the company has sought to get on the EU green gravy train bandwagon, latterly in Ireland, something which should get over the line in 2024. To address the funding factor the company has played it smart in terms of its future share of medical cannabis producer Ohrid Organics. The North Macedonia based company should be turning on the taps as far as cannabis and cash by the end of Q1 2024, and one would expect the run up to this event to drag HUI shares off their recent lows. Such an infinite funding runway should then be more than enough to help the group finance the plants rollout, which after all is the big green imperative, as well as underlining the “getting paid to make money (via plastic waste) to make money from hydrogen production.
15. Incanthera: 6.5p Target 15p Stop Loss 4p
In a cynical market, and for those who have been around the block for some time, it is rare to encounter a company which inspires at first glance. However, in the case of Incanthera (ICA), a company which has innovative technologies in dermatology and oncology, it looks as though we have a sweet convergence of IP, timing, and a massive addressable market. It is also helpful for those coming to the story at this point that the heavy lifting of commercial product development is out of the way enough for its unique delivery technology to shine. The announcement this month of a commercial deal for the launch of Skin + CELL, ICA’s skincare range, with Marionnaud Switzerland and Austria, part of the A.S. Watson Group, can be regarded as a green light for the bulls. This is especially the case as ICA moves to communicate with the stock market regarding the merits of its unique offering, where it is apparent that we are only at the foothills of the opportunity.
16. i3 Energy: 11.25p Target 20p Stop Loss 8p
While there is plenty of huff and puff in the small cap resources, it is still the case that there are relatively few significant, well run producers in the space. Ironically, the market in its current mode is relatively loathed to give the few like i3 Energy (I3E) that stand out. We have been reminded of this in the wake of multiple director share purchase over the course of the autumn. The last notable one was from CEO Majid Shafik in November. All of these have been close to the 10p level. One can understand why given the way that shares of i3 were trading at more than double this level at the beginning of the year. On an operational basis, the company has got over the Q2 disruptions, so much so that for Q3 it was able to increase production enough to meet previous guidance. There is now little excuse for holding down the shares near 10p any longer.
17. Marula: 13p Target 25p Stop Loss 9.5p
Perhaps rather unusually in Marula, we have another three companies attached to story. This is because Marula (MARU), Unicorn (UMR), Shuka (SKA) and new listing Neo Energy (NEO) effectively come as a package. They have the common denominators of Jason Brewer, and Quinton van der Burgh of Q Global Commodities. This is significant for two main reasons. The first is that as most of us know to our cost, in a bear market the decisive factor with regard to a company’s success or failure is funding. The second is the strength of the management. Given that Q Global Commodities is a company with $60bn of JORC assets under its belt, possible access to this sorts out the funding aspect for MARU, UMR, SKA and NEO. As far as management is concerned, JB has proven himself to be one of the most proactive on the UK market in the recent past, getting on with the job, and delivering appropriate newsflow on a regular basis. If you add in the expertise of billionaire entrepreneur QVB, we have four companies that have an unbeatably foundation for 2024.
18. Panthera: 6.25p Target 15p 4.25p
We know that retail investors love a punt, and we clearly have a sprinkling of them (with stop losses) in the Top 24 for 2024. But with Panthera (PAT), it would appear we have a punt, but where the downside is de-risked. This is said on the basis that the diversified gold exploration and development company with assets in West Africa and India, is effectively hedged in its claim regarding its Bhukia Project in India. Perhaps typically, this is one of those situations where a small company has a project attractive enough for the country in it to decide that it would rather have it to itself. Normally, one might suggest that this is part of jurisdiction risk in developing countries. However, with the $13.6m backing of litigation specialist LCM Funding SG Pty Ltd, a company with a very high success rate, those involved in PAT are looking at a very attractive example of no win – no fee. While how much and when the company will cash in from its litigation, the size of the asset suggests that thick 9 figures cannot be ruled out. In the meantime we have a well funded company to develop its other projects.
19. Poolbeg: 9p Target 20p Stop Loss 7p
The rule that biotech stocks and the London market simple do not mix is one that is rarely broken, especially within the kind of bear market that we have at the moment. However, there are usually exceptions to rules, and Poolbeg (POLB) has managed to underline this, with the shares being up 50% this year. This is even more of an achievement given the way that many so-called Covid stocks have been pummelled in the wake of the pandemic, but this stock is proving that it can be one for all seasons. The obvious driver for the win here has been progress regarding the company’s flagship POLB 001 treatment for severe influenza, backed by the recent positive patent, and collaboration news. But there is more than a very positive 2023 backstory, news in November that three former Amryt Pharma board members are joining the company should be transformational. This is logical given the way that Amyrt achieved a unicorn $1bn plus valuation.
20. Sovereign Metals: 26p Target 50p Stop Loss 20p
One of the characteristics of the stock market in 2023 has been mispricing of small cap companies, no matter how good the underlying fundamentals. Sovereign Metals (SVML) has been one of the stocks underlining this fact in an outstanding way. Part of the block in terms of valuation in such situations is the need for companies in a cash conscious market to underline that their funding position is secure. This was effectively done in July by none other than the £21m investment by Rio Tinto (RIO), a move that effectively de-risks SVML going forward. Given that the company is sitting on the world’s largest rutile-graphite project in Kasiya, the arrival of Rio as sugar daddy, is one that should mean that it is job done, as much as for future development, but in the share price. Recent support for the shares has been towards 20p, but really the shares should be on the right side of all time highs through 50p last year, well before the investment by the mining giant.
21. Tap Global: 1.95p Target 6p Stop Loss 1.5p
Speculation over a Bitcoin ETF has meant that 2023 has seen Bitcoin and the cryptos end 2023 with a flourish. Rather typically for the stock market in London, it has been loathed to price the rise and rise of cryptos in related stocks. This was pointed out in the Bulletin Board Heroes just a few weeks ago, when crypto miner Argo Blockchain (ARB) was trading below 10p. It has since tripled to peak above 30p. The read across to regular financial and crypto super-app Tap Global (TAP). Indeed, one could argue that it makes for a safer proxy to the world of digital assets than Argo. Evidence for this comes from the latest update from Tap, which revealed that revenue hit £2m in the year to June 30 from £50,000 the year before. Even better, as BTC recovered in H2 2023 revenue in the five months to November was £1.0 million. With the company having kitchen sinked the costs for scaling up the business, particularly looking to the US, it can be expected that 2024 will be the year when Tap shines.
22. Tirupati Graphite: 16p Target 35p Stop Loss 12p
The exercise of picking out contenders for 2023 this time last year was certainly not one which rewarded anyone giving the benefit of the doubt to a small cap company. Indeed, even if nothing much went wrong (or right) a whole swathe of small cap stocks have fallen by a half, almost as a default setting. Part of the explanation, apart from investors hoarding cash, has been that companies where the narrative contains multiple moving parts, tended to be disproportionately punished. As far as graphite play Tirupati (TGR) has been concerned, the focus has been on the much anticipated road to production ramp up. In the autumn the shares received a boost from the China curbs, and really this should be the winning factor for TGR in 2024, whatever the vagaries of the graphite price, production levels, or funding. The latest reported swing to profit marks an obvious fundamental inflection point.
23. URA Holdings: 1.2p Target 3p Stop Loss 0.95p
On the face of it the investment premise behind URA Holdings (URAH) has been a no brainer from the start. Interestingly enough, as we end 2023, this state of affairs appears not to have changed. Indeed, it has only become stronger, in the wake of the latest fundraise at the emerald and strategic minerals company. The market is not behaving as if the £1m raised to reopen the flagship Gravelotte mine will indeed get production up and running. It has also never acknowledged that the company is sitting on JORC (2012) Exploration Targets totalling between 168 million carats and 344 million carats, which given the see through value of over $250m, it bought for a song. Given that production is imminent early in the new year, as opposed to many where D Day in this respect can be months / years into the future, then the current 1.2p share price / £3m seems like merely cheap call option money.
24. Wildcat Petroleum: 0.40p Target 1p Stop Loss 0.33p
Another possible rabbit out of a hat situation, which has already started to come to life and could partly live up to its name is Wildcat Petroleum (WCAT). The reason for saying this is that we have been waiting rather longer than expected for a production sharing agreement, not helped by the conflict in Sudan. Nevertheless, the shares have doubled in the past couple of weeks, and even though it has to be regarded as something of a wild card, the downside looks limited, and the upside could be stellar if the Man From Del Monte signs on the dotted line for WCAT. Those who have interest here should maybe check out the likes of Savannah Energy (SAVE), which recently kicked its moment of truth in South Sudan to February 1.
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