MoneyTalks: Peak Asset's looking at these renewables, cannabis and gold plays in 2021

Money Talks is Stockhead’s regular recap of the ASX stocks, sectors and investment themes that are hot with fund managers and analysts.

Today we hear from Niv Dagan from Peak Asset Management about the ASX sectors set to do well in 2021. He named three sectors in particular as promising thematics.

“The big theme will be renewables and hydrogen,” Dagan declared.

“We feel that as governments and the global corporations move towards trying to cut emissions, you’re going to see a lot of funds going into ESG and sustainable investments – so that’s a big theme.

“The second major theme we think will be cannabis and also psilocybin which is the extract of the mushroom – treating anxiety, mental health and concussion.

“With Biden coming to power, you [will] see decriminalisation on a federal level of medicinal cannabis and we believe it will be same for psilocybin.”

Dagan is also hot on commodities, particularly gold and silver.

“We feel that gold and silver will still be talking points – especially in the first quarter of the year as central banks remain stressed from quantitative easing,” he said.

“We fell the USD will continue to fall, we feel that inflation will start to be a talking point and on the back of that we can see another run towards the US$2,200-US$2,500 level in the first quarter of next year based on those themes.”

TYMLEZ GROUP (ASX:TYM)

Tymlez first listed in late 2018 when promoted itself as a blockchain stock.

Yet one of its projects, ourEnergy – which does involve blockchain technology – places it at the forefront of the energy revolution.

“They’ve built a decentralised energy market place for the trading and tracing of green energy units including carbon,” Dagan explained.

“They’re looking at renewables and have the infrastructure in place.”

The company has claimed ourEnergy is the world’s first autonomous energy trading platform.

Tymlez Group (ASX:TYM) share price chart

COUNTRYWIDE RENEWABLE ENERGY

Amidst ASX renewables stocks Dagan tips hydrogen as one sub-sector to be a hot theme in its own right in 2021.

While the ASX hydrogen sector is small right now, it will grow next year with Peak planning to take this company public in 2021.

Countrywide hopes to capitalise on Australia’s energy needs which will grow in conjunction with Australia’s population – set to hit 50 million by 2050.

“They’ve got a partnership with Woodside Energy (ASX:WPL) for one of their projects in Tasmania and a number of MOUs as well,” Dagan said.

LIFESPOT HEALTH (ASX:LSH)

This company is developing a telehealth platform (BodyTel) and medical cannabis inhaler device, but that’s not all.

“They’re undertaking some clinical trials in the CBD space, leveraging off their proprietary vape technology,” Dagan said.

But Dagan also likes LifeSpot because of a recent backer, which happens to be Australia’s largest network of medical cannabis prescribers.

“The guys behind IHL – Incannex (ASX:IHL) – a group called Cannvalate, invested $960,000 in Lifespot Health and we think they’re in a strong position.”

Lifespot Health (ASX:LSH) share price chart

ROTO-GRO (ASX:RGI)

Roto-Gro is an agtech company having built its own proprietary vertical farms.

But it is also a cannabis stock with a significant proportion of its clients being in the cannabis sector meaning exposure to two hot themes on the ASX in 2021.

“We’re seeing a lot of money go into agtech into 2021 and Silicon Valley is investing a significant amount of money in the way agriculture is being constructed,” Dagan explained.

“The consumer these days want products that use less water. [A vertical farm] uses 99 per cent less water, 99 per cent less fertiliser, it’s all organic and essentially the farm comes to consumer.

“And Roto-Gro are really the only company listed on the ASX where investors play the whole vertical farming angle – we like this space, we think it’ll be a big talking point in 2021.”

Roto-Gro (ASX:RGI) share price chart

SABRE RESOURCES (ASX:SBR)

Peak recently raised capital for this WA explorer having first proposed $3 million but demand was that hot, Peak ended up with binding commitments for $4.8 million.

“Sabre have got some tenements in WA next to Penny West and should have some assays due this month,” Dagan said.

Penny West is known for hosting a gold mine discovered by Spectrum Metals (ASX:SPX) and now operated by producer Ramelius Resources (ASX:RMS).

Ramelius snapped up Spectrum earlier this year for around $200m. Spectrum rocketed to that level from having $5.3m only 12 months earlier.

Sabre Resources (ASX:SBR) share price chart

GOLDEN DEEPS (ASX:GED)

Dagan also backed Golden Deeps, again being succinct about why he was a fan of them.

“Golden Deeps have some gold and silver tenements next to Silver Mines (ASX:SLV) and we should see some results coming through soon,” he declared.

While silver has long been viewed as a “poor cousin” to gold, silver has been a hot theme on the ASX in recent months and is predicted continue in 2021.

Silver Mines (ASX:SVL), Golden Deeps’ neighbour, is sitting on one of the world’s largest silver deposits at its Bowdens project with production expected to be around 3.4 million ounces per year.

Golden Deeps (ASX:GED) share price chart

The views, information, or opinions expressed in the interviews in this article are solely those of the interviewee and do not represent the views of Stockhead.

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