This Week’s News Makers are Riding High
Email Sent On: 05-12-2020
A couple of weeks ago we shared the portfolio of stocks that we are invested in.
We have built this portfolio over the last two years and we do significant research and analysis before taking a position in any company.
These are stocks that we have high conviction in.
Stocks that we are willing to ride the highs and lows with because we believe in their business plan and management’s ability to execute the strategy.
Many of these stocks have risen over the last few weeks with several companies in our portfolio closing out 2020 on a high.
Some are riding highs on milestone news events
Others seem to have caught the imagination of investors just because they are in the right place at the right time.
Every fortnight, we will update you on what is happening with our portfolio and the stocks that are making news and making moves - positive or negative.
In case you missed it, several of our portfolio stocks released news this week.
There are also stocks in our portfolio that had no news at all, but hit new heights.
... We believe this is due to a combination of buoyant market, quality companies and readers getting hold of the story.
This week’s top 5 newsmakers
We invested in MyFiziq (ASX:MYQ) on the strength of its technology. The MyFiziq app monitors changes in your body shape, tracking muscle and fat changes over time via a live 3D body image.
Over the course of the year, MYQ has signed several market moving deals and this week was no different after it announced a deal with Triage, who’s Artificial Intelligence (AI) technology can identify skin conditions via your smartphone.
- MYQ will take a strategic equity stake in Triage and license use of Triage AI health assistant technology for integration into the CompleteScan SaaS offering.
- MYQ will now be able to now track and monitor body dimensions AND assess skin problems
- The technology could potentially help save lives by faster diagnosis.
We think this strategic investment is a positive move, given MYQ is gearing up for a NASDAQ listing.
88E is a highly active oil explorer, continuously searching for a multi-billion barrel prize on the North Slope - one of the oiliest places on Earth.
Having just completed a capital raise up to AU$10.07 million , 88E is primed for another run in the lead up to a billion barrel drilling event.
We recently increased our holdings at $0.006.
Here’s what to expect from the company near-term:
- Drilling in February: We expect a significant share price run in the coming months, on strong volumes in the lead up to this important drilling event.
- History: As news in the build up to drilling is released to market, the momentum builds. We are betting this will happen again.
- Farm-out: 88E is now well funded to conduct its drilling.
We expect a significant share price run in the coming months, on strong volumes, in the lead up to this large drilling event in February 2021.
PUR this week announced their new exploration licenses right near Chalice’s billion dollar discovery in the emerging Julimar mineral province.
They followed up with ANOTHER announcement confirming a further two exploration licenses.
This is significant because:
- The tenements are located between 20 kilometres and 170 kilometres to the north of Chalice Gold Mines Ltd’s (ASX:CHN) Gonneville Julimar discovery.
- This discovery was a groundbreaking one for Chalice, which is up over 1,600% since January, and is currently capped at $1.2BN - one of the top performing companies on the ASX this year.
- Given the proximity and the similarities between PUR’s tenements and CHN’s discovery, we expect PUR to continue its upward trend in the lead up to drilling
Since the initial announcement, PUR’s shares have risen 30% and its market cap has moved from $11M to $15.58M. The company is fast tracking operations, so there should be plenty of catalysts on the horizon.
Elixir Energy is exploring for natural gas on the Mongolia-China border.
Elixir was waiting for critical information regarding adsorption results from its latest drilling, but COVID-related issues caused some delay as the laboratory results are being processed in Beijing.
The outlook is good though. Here’s why.
- The news was worth waiting for and demonstrated that the lower 100 series coals at Nomgon-2 are fully gas saturated.
- This is consistent with the earlier Nomgon-1 well, representing a best-case scenario as it will greatly reduce the costs and other issues associated with water handling in future testing and production phases.
- Proof of consistently strong adsorption results will positively impact the company’s production testing in 2021.
With its extensive PSC landholding providing ready access to high demand markets in China, Elixir represents a compelling investment play for Australian investors.
Alexium is a performance chemicals provider for advanced materials applications with a focus on flame retardancy and thermal management.
This week, Alexium announced the commercialisation of a new line of proprietary bio-based and biodegradable phase change materials for thermal management applications.
This is significant in that ...
Beyond the environmental benefits, these products provide further performance enhancements and expand the range of applicable market segments for the company’s Alexicool® portfolio.
This is consistent with AJX’s goal of positioning Alexium as an ESG-centric company with the combination of our bio-based PCM with the FR cotton sock and environmentally friendly flame retardants.
AJX is currently one of our lesser known investments, however we took a position in AJX at 6.5c and are long term holders based on its management team, capital structure and private equity experts Colinton Capital partners taking a large stake in the company.
There you have it, these are the top five newsmakers in our portfolio for this week.