UK Tech Giants
This week we were perhaps reminded why there are few UK tech giants, with the acquittal of Autonomy entrepreneur Mike Lynch on fraud charges in the US. Quite understandably he is now trying to change the one-sided US extradition treaty that he and so many others have suffered from over the years. This nature of this treaty would be unfair even if the UK was a colony of the US, let alone a former, temporary ruler. Whatever happens, and one suspects there will be no change, tech entrepreneurs in this country have a long way to go to get up to Nvidia levels.
D-Day
Of course, the election campaign continues, with the highlight perhaps being the alleged snubbing by the Prime Minister of the D-Day invasion anniversary. Alas, I would guess that the Normandy landings have little significance for many under 50, and especially those under 30. A lesson from wars which is not often highlighted is that their goals and those who take part in them is that they are forgotten well within a couple of generations. This is of course a good reason for avoiding them in the first place. One would guess that even our relatively young Prime Minister regarded D-Day as not that big a deal relative to the matters of the day. That said, it is still surprising that in the election campaign so much importance is given to alleged policy, as opposed to the real purpose which is merely electing politicians. It has been decades now since there was a connection between what is voted for, and what is carried out.
Tirupati
Speaking of voting, in the small cap area there is a nail biter coming up with the 11 June vote at Tirupati Graphite (TGR). This is all the more ironic in the sense that arguably it mirrors the choice being faced by the UK electorate at the moment. The status quo is unacceptable to many, but the uncertainty of change is not that appealing either. Therefore, both choices are painful. It will be interesting to see which way the vote goes, and whether as could be the case, “the devil you know” wins the day.
Kibo
A situation where we hope we are looking at a new dawn is at Kibo (KIBO), where interestingly I know of many of the new runners and riders at the company. They are all people who have apparently done well for themselves in the small cap area. But there is a difference between having hopped from company to company doing well for yourself, and doing well for shareholders, especially when you do not mention your losers. There is also a cause and effect factor: there are many people on the small cap gravy train who have had no effect on either the success or failure of a deal, but simply happen to know the right people to get the job. Hopefully, on this occasion the new management will also do well for shareholders of Kibo, who have suffered for long enough.
The Great British Dream
Indeed, Kibo does once remind me of the closed shop that the City is. This may explain why it lags behind the US by such a great degree. We have all heard of the American Dream, the Great British Dream is not so famous. The only way I could get a job on the board of a listed company was to found my own. The only way I could get a job at a City PR firm was to set up my own. Even if I call the FTSE 100’s closing price every day for a year, I can guarantee you I will not be offered a job writing for the Financial Times. I wonder what would have happened if I had been born in the US?
The Small Cap Awards
By the way, I am still waiting on at least three parties to send me an invite to the Small Cap Awards next week. It will not happen, probably because of the comments in this article and in general!. This is even though or perhaps because this is an area I have championed for over 25 years in the public domain, as opposed to just consorting with others on how to get cheap seats at listed companies that have fallen on hard times. Small caps are by definition, the future of the economy, and retail investors making money from them is the sweetest thing.
Eurasia
Indeed, this week was quite sweet for someone who enjoys seeing the punter make money – or at least make money back. On Friday morning I covered Eurasia (EUA) for the second time this week. The shares were down 5% around 2.10p. But still the low of the day was above the 200 day moving average at 1.95p. Nevertheless, the stock holding above its 200 day line for the first time in over 2 years – very significant. To my delight the swing at EUA was from down 5% around 10am to up 70% at the close. I had called the stock to an initial 3.1p by the end of the month. In fact they hit 4.3p at the high, closing at 3.8p by the end of the day. This is what charting and small caps are all about, especially when in this case, there was no news.
Regtech
Another stock which the bears love to defame, knowing full well the company has no legal firepower to fight back, is Regtech (RTOP). And this week RTOP was another charting “win”, breaking recent 1.75p neckline resistance and providing a gap close buy signal at that point. My initial target here was 3.5p and then 5.5p, while above 3.5p. In the end the shares peaked at 8p.
Pulsar Helium
Of course, not every stock is going to be a winner all the time, even one that has blown the lights out in terms of its story since listing. The interest in TSXV listed Pulsar Helium (PLSR) has been heightened from a UK perspective by the way that much of the management and shareholder register is dominated by Brits. It has also been the first company in recent years to prove that helium and the stock market can go well together – especially if the former actually finds the gas, which it did in spades in February. The shares listed at 30 cents, and peaked at well over 5 times this level earlier this year. But a point to remember is that whenever a stock has knockout news or a knockout share price rise, there can be those who like to throw some cold water on the situation. This can either be because they missed out on the rise, or were caught short by it. We are seeing some intense nit picking regarding the latest news from the company. But quibbling over timelines, gas pressure, size of the asset, or the share price, does not disguise the fact that PLSR has been a massive success as a major North American helium discovery. Let’s see how things progress for the stock once the last of the weak hands are shaken out.
Ondine Medical
If the helium area has been tough historically for investors, the biotech area can also have its ups and downs. A company which I have interviewed recently is Ondine Biomedical (OBI), which stands out as a game changer via its nasal photo disinfection process, Steriwave.
https://zakstraderscafe.com/interview-nicholas-loebel-president-cto-ondine-biomedical/9533/
Steriwave should not only be a game changer, but a world beater, something helped along by the way that the company has already raised cash in May. So now all we are looking at is regular news regarding the rollout of Steriwave. This is what we are currently seeing, and the company is worth noting the annual report released on Friday www.ondinebio.com/investors/reports-documentation/ and listen to Monday’s forthcoming presentation via: https://www.investormeetcompany.com/ondine-biomedical-inc/register-investor
Electric Guitar
This week I also interviewed stock market newbie Electric Guitar (ELEG), a UK tech company which could eventually give the US giants a run for their money, extradition treaties permitting. First party data is the new rock and roll in tech, and once investors understand and realise this ELEG will be on its way.
https://zakstraderscafe.com/interview-john-regan-ceo-electric-guitar-3/9542/
Alien Metals
Finally, after quite a hiatus, I interviewed Alien Metals (UFO), in the wake of its latest fundraise of £630,000.
https://zakstraderscafe.com/interview-robert-mosig-technical-director-alien-metals/9540/
Finally, as I say, I have been in and around the stock market day in / day out for 35 years. In this time one gathers the odd wise old head to talk to about the market. This week it was the turn of one of the oldest – in his 70’s, to pitch in with a couple of stocks he has bought into. The first was Upland (UPL) off the back of a 14% share purchase, more than enough to blow away any doubts about the company’s prospects. The second company my old investor friend pointed out was United Oil & Gas (UOG). Here is suggests that the tiny £2.5m market cap, the settlement of debt, and no value being attached to the company’s Jamaica assets, make the stock appear cheap. We shall see…
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