Traders Cafe with Zak Mir: Argo Blockchain, Caracal Gold, KR1, MediaZest, Oilex, Tirupati Graphite, ValiRx
Perhaps rather encouragingly, we have seen some small caps that have been stuck in a range for months, finally break out. Mobile Streams (MOS), has been notable. However, after being in a range from the end of January, ValiRx (VAL) has also broken the price action log jam. This comes in the wake of the clinical stage drug development company entering an evaluation agreement to investigate a novel technology designed to treat breast cancer. The company said that if the evaluation programme is successful, it will achieve the dual objective of building a pipeline in both women's health and oncology. Shares of ValiRx comprehensively broke out of the recent 25p resistance band to end the week.
Digital asset investment company, KR1 (KR1), continues to be on the fundamental march, investing a total of $350,000 into Minterest, in return for a yet-to-be-determined amount of MNT tokens. KR1 invested alongside respected investors such as Digital Finance Group and CMS Holdings. The company said the decentralised finance ecosystem is expanding at a rapid pace, and Minterest has engineered a “great long-term model” because everyone gets their fair share of the rewards the protocol generates.
Another stock in breakout mode to end the week, after months of false dawns, has been MediaZest (MDZ). Here the shares finally responded to last month’s news from the audio visual services group regarding new project wins which have led to a notable improvement in the company's performance during the second half of the financial year. Recurring revenue contracts have been the key here, with several renewals and new contracts signed in recent months.
Market newbie Caracal Gold (GCAT) completed another positive week on the London market, helped along by a well received webinar on Thursday, and a good churn in the stock as new entrants to this well followed situation, mingled with former Papillon shareholders. Bulls of the stock have been pointing to a projected rapid increase in gold production to 50,000 oz a year and an increase in the JORC compliant resource base to 3 million oz plus.All of this for a market cap which is currently only around £20m.
The stock market can be a curmudgeonly place even at the best of times, not wishing to fully value companies, even when it might be fully deserved. It could be the case that Oilex (OEX) shares are finally on their way to a re-rating, despite the rather stuck in the mud attitude of investors. Ironically, the re-rate may have less to do with the latest announcement by the group of the company is focussed on the resumption of both production and field development activities at Cambay to exploit the 926 BCF of contingent gas resources, but much more with soaring gas prices which have been a shot in the arm of late for many gas stocks. All of this has of course been helped along by the alleged manipulation of gas prices by Russia, which simply cannot help live up to its Cold War / James Bond villain stereotype.Smersh’s alleged activities have also significantly boosted the share price of JKX Oil and Gas (JKX), which is a Ukraine, Russia, Hungary focused producer.
Specialist graphite producer and graphene and advanced materials developer, Tirupati Graphite (TGR) announced its Final Results for the year ended 31 March 2021. In Madagascar, at Sahamamy the 3,000 tpa plant achieved 57% operating margins, up from 48% in the previous year, while at Vatomina the 9,000 tpa plant commissioned in September 2021, production now ramping up to full capacity. The company also highlighted its Graphene and Mintech Research Centre which arguably could be the icing on the cake for TGR. It has been involved in the creation of manufacturing capabilities for Graphene Oxide, and Reduced Graphene Oxide. Tirupati’s aluminium graphene composite (Al-Gr Composite), which has the potential to replace copper in many weight-sensitive applications, and can be regarded as a company maker in its own right.
Shares of crypto miner Argo Blockchain (ARB) closed the week up 20p, and are up by more than a third after last month’s failed bear attack on the company. The recent recovery in Bitcoin and all things crypto, as well as the company’s plans for an initial public offering in the U.S. have clearly helped distance Argo from the UK stock market’s school playground type shorting related jibes.
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