Rachel Goes To China
This week, as everyone got back to work properly, contained stark reminders of where we are economically, and where the stock market is. It was also interesting that the offline sources of information / face to face, remain rather more reliable than either the mainstream media, or even those who should know their stuff on social media. The Chancellor’s visit to China delivered a deal worth £600m, although what she really needed was £60bn after all her autumn handiwork. One would guess that Ms Reeves did not mention any human rights issues within the world’s most populous tyranny, or that in the past four years that China has apparently produced more emissions than the rest of the world combined since the start of the Industrial Revolution. But at least she got the £600m.
I maintain that the direction steered by the Labour government is not so much a failure, but primarily what it wanted: enlarge and finance the State, and shrink the private sector. This is similar to the jaw-dropping video shown below which reveals the demise of the UK stock market over the past 60 years. Those who hate the stock market, entrepreneurs and the money they may or may not make would be delighted at what has happened over the decades.
This battle goes on now, not only with the typical British attitude to wealth creators, but at the small cap end of the stock market. I have described the mix of gangsters / bullies, used car salesman and cowboys occupying the small cap area, and do so again to start 2025. This is because the worse the stock market gets, the more this Wild West / Prohibition Era state of affairs is entrenched. Indeed, this week I was speaking to one CEO who has been on the board of several companies over the past 20 years, and who vows never to do so again on principal, however good the opportunity may seem.
Another CEO I met bemoaned being held to ransom in terms of audit costs. And of course, there is the almost daily online trolling, threats and abuse CEOs get on an all too regular basis via social media, or directly. Of course, the main source of criticism they get are from either people who have never been on the board of a listed company, or even those who have failed in such a role. Because of the possibility of reputational damage, the management of public companies are effectively clay pigeons to bad actors, especially in terms of the service providers and what can appear to be life within a protection racket. There is the assumption of small cap company CEOs being greedy, or incompetent, or both. But given the cost, the red tape and the economic backdrop, at the very least the challenge represents walking up a down escalator. As we are increasingly finding out, the easy money for fat cats is in the public sector, not listed companies.
Pri0r1ty Intelligence Group
Given all of the above one might have thought it was game over for the London stock market. This may eventually be the case. but in the meantime there are a few brave souls happy to step up to the plate. Leading the way this week was Pri0r1ty Intelligence Group (PR1), with a very impressive LSE bell ring on Friday, and attendant media appearances. The board clearly are proactive, and one would expect much more of a share price rebound even than we saw on Friday, as the company explains to its target corporate audience the benefits of its AI driven model. A quick stream of sign ups to its AI driven engagement platform could build decent momentum in the valuation of the company early this quarter.
Vinanz
Another positive, which will of course be knocked as much as possible by the stock market’s bitter and twisted bully brigade is Vinanz (AQSE:BTC), which is set to move to the LSE tomorrow. This is an achievement which Chairman David Lenigas should be justly proud of. It is not easy to move from Aquis to the main market, not easy to raise the cash to do so, and even less easy for a Bitcoin miner to get to the LSE given how squeamish the exchange is about everything except large sweatshop Chinese companies that will deliver it big fees. The icing on the cake of late of course has been the Trump win and Bitcoin breaking $100k, off the back of the President Elect’s suppose of crypto and the possibility of a US strategic reserve.
This Week’s Risers:
There were several decent rabbit out of hat news stories to back the winning stocks this week. ImmuPharma (IMM) lead the way on news of positive autoimmune findings, Victoria (VCP) soared as the flooring products group anticipated savings of up to £80m by the end of 2027. Those looking for a really woke sounding winner could follow Dowgate in building a stake in Xeros (XSG), the creator of technologies that reduce the impact of clothing on the planet. Challenger Energy (CEG) stood out as it could boast that he funds received on completion of the Chevron farmout means that it is fully funded for the foreseeable future. Mindflair (MFAI) could finally sing the praises of one of its investee companies, as Infinite Reality raises $3bn.
Rising On No News
Of particular interest, and the reason I include the stocks rising on no significant near term news, is because in current cash strapped stock market conditions, one can be sure that no one is putting their hand in their pocket unless they are pretty sure something good is going to happen. A good example of during the week was Tower Resources (TRP), where people clearly guessed rather successfully a farmout was on its way. As far as the “no news” squad this week was concerned, there was actually quite a decent list: Borders (BOR), Proteome (PRM), new entrant GenIP (GNIP), Jersey (JOG), Argentex (AGFX).
The other point to note for those who perhaps wonder why these stocks are covered in the rear view mirror, is firstly we have an assumption that they may rise at least until significant news comes out. The second point is that the first alert that they are on the move, as was the case with TRP, was a charting alert derived from the Bulletin Board Heroes, here on ZaksTradersCafe.com.
Bulletin Board Heroes
Indeed, this six days a week video remains the flagship offering here. I maintain that as an investor, being alerted to high percentage set ups, with targets and stop losses is as or even more valuable than the fundamentals. This is especially so, if you are not a genius at wading through the fundamentals, or stock market timing. The charting triumphs of Sealand (SCGL), EnergyPathways (EPP), Roadside (ROAD), Mobile Streams (MOS), Fusion Antibodies (FAB), Orosur (OMI), MicroSalt (SALT), Renalytix (RENX), and Quadrise (QED) have all been highlighted in the Bulletin Board Heroes in the past few months. In my view it would be much more useful for a company’s stock to be mentioned in the Bulletin Board Heroes, and the roadmap it provides, than the plethora of 20th century offerings still doing the rounds from increasingly desperate parties.
