Trump Returns
For some the return of Donald Trump has all the allure of the film, The Mummy Returns, especially the mainstream media, which certainly took a drubbing on a “too tight to call” Presidential election. The lowlight for me was watching the Sky News election coverage from Washington last Sunday. It was hosted by the very well experienced, but surprisingly lightweight Mark Austin. He gives the impression of knowing as much about American politics as I know about rugby league. This broadcast was around the time of the poll revelation that Trump was to lose Iowa. The other notable feature of coverage was the Democrat celebrity endorsement machine, peaking with former film star George Clooney.
All of this echoed what we saw in 2016, which led to Trump’s first victory. The mainstream should have realised that if they did the same thing again in 2024, it would deliver the same result. Of course, it “worked” in 2020. But this time being nearly bankrupted, killed and convicted, managed to do the trick for the President.
The July General Election
Closer to home the result of the Trump victory had some wondering more than ever, why Rishi Sunak went for a July general election. The time was almost as if Sunak wanted the Conservatives to lose. If he had held onto the aftermath of Trump winning this month, the result could only have been better. If nothing else, we would have had a few months less of freezing pensioners, black hole filling tax rises, riots, and two tier policing.
Black Swans
As far as the stock market has been concerned, after an initial feeling that things were not as bad as feared in the Budget (they were), the FTSE 100 and AIM index drifted lower. They were not helped by some rather alarming car crash / black swans that appeared during the week, something reminiscent of the bottom of the depths of a bear market. Perhaps if fears of Trump’s trade tariffs prove correct, this may be what we are heading for. But in the meantime, companies like Wood Group (WG.), Vistry (VTY), and Cab Payments (CAB) in the blue chips, and Hummingbird (HUM), Westminster Group (WSG) and Feedback (FDBK) provided the punches in the minnows. We have not had such wheels coming off the wagon incidents for quite some time. But the tax rises, IHT / CGT, may actually pale into insignificance compared to the effects of the National Insurance hikes for the private sector. Of course, all of this is a deliberate ideological move by an ideological socialist government. To paraphrase The Who song, one imagines that we will never get fooled by Labour again.
The Week’s Risers
One of the best situations of the week, a stock which had already gapped up ahead of the update that contained the forecast of a revenue jump, was Aferian (AFRN). Not for the first time in the recent past, it would appear that some investors successfully guessed that there would be positive news in a RNS. Zentra (ZNT) was in favour, as the former One Heritage, extended the sale date on its £7m property portfolio to the end of this month, to coincide with its arrival on the AQSE Growth Market. This reminds me, I will be soaking up the adulation and signing autographs at the forthcoming Aquis Showcase event in London on Tuesday: https://www.eventbrite.co.uk/e/aquis-showcase-tickets-951428316707
Other stocks that hardly anyone has heard of that were rising this week included DSW Capital (DSW) off the back of a £6m acquisition, and London Finance (LFI), ironically after selling all of its stock market portfolio.
Jubilee Metals
The share price story of Jubilee Metals (JLP) is one that at least from the beginning of the summer, has been as frustrating as it has been painful. However, the start of November has been a happier time for holders in the sense that the aftermath of an operational update. The highlight here was the revelation of “impressive” organic growth in South Africa. The shares closed up 21% at 5.4p, but deserve to be back at 8p plus by the end of this year, as they were at the beginning of it.
Eurasia Mining / Ferrexpo
A stock which had a decent end to the week, and may see more next week is Eurasia Mining (EUA). This is said in the run up to the company’s AGM on Friday. An added driver is that the company has undoubtedly been one of the UK’s Trump Trade contenders, on hopes that the President Elect may be able to resolve Russia / Ukraine. Indeed, the big jumping situation of the week here was Ferrexpo (FXPO), whose shares jumped 16%. There could be yet more once any peace plans become more concrete.
Neo Energy
Some traders seem to be pinning their hopes on Neo Energy (NEO). The uranium focused group, is led by force of nature Jason Brewer. According to a First Equity research note from August, which had a 20p target price (currently 1.15p), with further near term acquisitions being the main driver.
Georgina Energy
The dearth of new companies coming to market remains a problem in 2024, and therefore it has been great that Oak Securities has been on the case, raising money for and listing new companies such as Pulsar Helium (PLSR), Rome Resources (RMR) and Helix Exploration (HEX). All of these have done well, with only Georgina Energy (GEX) on the back foot, until now, after a bright initial start. The usual clickbait, hatchet job, fact light personal jibes, have been at place here to get the stock price down. But a solid operational update, and talk that a seller had been cleared from the stock, left GEX up 10% on the week, and if it copies the pattern of RMR and HEX especially, the bulls could be back on track. As GEX said, “The Company continues to move along with re-entering Hussar and bringing Mt Winter to pre-drill as part of our programme to develop low-risk helium, hydrogen and natural gas projects in Australia. All the work programmes are fully funded from our recent listing.“
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