It is all too easy in life to do an Ian Hislop and make a living out of taking potshots at the failings or alleged failings of others. This is particularly the case in the political / financial area where it is as much the gods who decide what happens, as much as say the Prime Minister or the Governor of the Bank of England. This week it could be said that the “establishment” had a good week. The UK economy is growing, and the FTSE 100 at fresh all-time highs. This is despite, or maybe because of painfully high interest rates (2% above inflation) and the highest taxes in living memory. Just imagine how much of a boom we would be in if we were not swimming through treacle with the various own goals of the recent past. Reports that Chinese founded fast-fashion chain Shein is set to list in London with a £50bn listing rather kills the idea that London is past its sell by date.
Helix / Pulsar Helium
Closer to the small cap area (AIM All Share up 2.83% this week) which is where London has its FCA induced Achilles Heel, we have seen recent IPO Helix Exploration (HEX) double from its IPO level last month. Helium is certainly the new rock and roll, a point underlined by the way that Pulsar Helium (PLSR) in Canada is 4x since listing. It listed on the TSX-V in August, and of course would have been a healthy addition to AIM.
Electric Guitar
One would expect a decent recovery from the latest new entrant to market, data marketing group Electric Guitar (ELEG) once any weak hands are out. The shares had a slight bounce on Friday, which may suggest that fresh buying is set to come in, now the dust has settled.
Georgina Energy
If the establishment have had a good week, I might have to acknowledge that the mainstream media has also been helpful. The Mail reported that investors will have a new company to chase on the London market, after a reverse takeover of Mining Minerals and Metals (MMM) with hydrogen / helium play Georgina Energy. In fact, I interviewed Georgina some time ago, and am pleased that it has apparently finally got over the line.
Brave Bison (BBSN) has been a cut above most small caps due to the quality of its management, a point underlined by the way that Lord Ashcroft has built a 20% stake in the digital marketing group. The Times suggests that BBSN will make a bid for peer, The Mission Group (TMG). This is the kind of story that we used to have in the good old days when we had a proper liquid stock market, and did not have the Orwellian regulation.
Power Metal
As far as the stocks to watch are concerned, the low hanging fruit, literally, in terms of its share price is currently Power Metal (POW). Shareholders here at the end of March voted for a share price consolidation. If they had asked “Uncle” Zak he would have said not to do it. Historically, while this may be a good idea in theory, in most cases consolidation is followed by share price weakness. The analogy is lobbing up a ball to Novak Djokovic, and hoping it will not be smashed back down over the net. Shorters and others just cannot resist a “higher” share price to knock down. That said, there is a plethora of good news. Shares of POW are now almost exactly half their February peak, and offering an opportunity to value hunters. This is against a much stronger metals price background, stronger Golden Metal Resources (GMET) share price (investee company), planned Uranium Energy Exploration IPO, new OTCQB listing, a financing round for Power Arabia with a view to completing transactions in the region, and the successful completion of the drillhole DDH1-14C at its Molopo Farms Complex Project. I look forward to interviewing CEO Sean Wade again in the near future.
Marula
Perhaps interviewing Mr Wade will have the same effect on his coterie of companies as Thursday’s interview with Jason Brewer of Marula (MARU) and an increasing brood of other junior London mining / exploration companies. It was good to see the brood, including Marula, display share price rises in the wake of the interview, one which was rather better received that those on the cowboy “PR” brigade platforms. In fact, the worst interviews are the to camera ones done in the style of a TikTok video. These should not only carry a photo-sensitive epilepsy warning, but also one to CEOs not to do them unless they are under 25.
Wildcat
Finally, the conundrum continues at Wildcat Petroleum (WCAT). While I have waited nearly 25 years for the FTSE 100 to get to record highs, I am assuming I do not have a future similar timeframe to see the denouement at WCAT. Here the big question is how South Sudan will pan out in terms of the company receiving a production license? This does appear to be a race between WCAT and Savannah Energy, with the possibility of only one winner, and hopefully well before summer 2024 is over. Savannah’s revised cancellation date of May 17 could be a focus of fresh news.
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