Kick Back: The 10 biggest stories you might have missed on Stockhead this week
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Here’s all you need to know – the best of Stockhead this week, featuring an abundance of new stock picks. You’re welcome.
Stockhead’s Unicorns Podcast connects you to some of the best and brightest founders, CEOs, executives, business owners, VCs and market leaders.
This week we spoke to Tim Fung, co-founder and CEO of Australian start-up sensation Airtasker.
Fung has created a household name in Airtasker, which now employs over 100 people, is valued in the hundreds of millions of dollars, and is on its way to becoming a true tech ‘Unicorn’.
FDA approval is critical for small caps because in many health care markets the US is the world’s biggest opportunity.
But it can take years. 4DMedical founder & CEO Andreas Fouras said having FDA approval before listing de-risked the company massively.
Every week, former geologist and experienced stockbroker Guy Le Page shares his high conviction views on the market and his “hot stocks to watch”.
This week, South American-focused gold stocks are in the spotlight.
Le Page likes the look of Titan Minerals (ASX:TTM) which has two projects in Ecuador – 2.1moz Dynasty, its flagship project, and Copper Duke.
“They’ve got about $12m in cash, a market cap post the recent placement of about $140m, but very significant gold grades,” Le Page says.
“There’s a lot of discussion around town about what they’re doing – 2 million ounces at 4.5 grams is a seriously high-grade resource. That puts them right up in the top quartile of grade tonnage in the world.”
Also a South America-focused gold explorer, Challenger Exploration (ASX:CEL) was trading around 14c when Le Page first mentioned the company at the start of May.
The company, which slid as low as 7c during the pandemic sell-off in March, has since climbed higher to ~23c.
Some more good news for the beleaguered – but increasingly positive – battery metals sector.
Lithium miner Galaxy Resources (ASX: GXY) has signed up long-term Chinese customer Sichuan Yahua Industrial Group to a new three-year supply deal for its Mt Cattlin spodumene concentrate.
Meanwhile, Alkane Resources’ (ASX: ALK) rare earths subsidiary, Australian Strategic Materials (ASM), has completed some important research work with its Korean joint venture partner ZironTech.
The ASM-ZironTech joint venture is targeting 45 per cent less energy use in its rare earth metallisation process compared with current industrial processes.
Investment in gold companies is starting to look a lot like herding “elephants through a really small door” as spot prices cross back over the $US1,800 an ounce mark.
In other words, there is a lot of money out there “…coming into a very, very small sector”, Steve de Jong, the chief executive officer of virtual mine tour provider Vrify, told Kitco News.
With the price of Australian gold at $2,589.84 an ounce thanks to the favourable exchange rate, it is no surprise that companies in this space have been able to raise money successfully.
Investors who saw the COVID-19 selloff in March as a buying opportunity would have reaped some handy gains over the past few months.
But after an unexpectedly bullish June quarter, higher valuations make for a more complex outlook in the second half of the year.
Looking back on the historic volatility in March and April, Oracle Investments fund manager Luke Winchester said the focus turned to earnings certainty — small and mid-cap stocks that could demonstrate an ability to maintain their business model in a world that got turned on its head.
Investors are increasingly inquiring about gaining exposure to silver and copper.
Silver has popped 55 per cent higher since mid-March to $US18.70 ($26.90) an ounce, carrying it beyond its 2019 average of $US16/oz.
Copper has marched 36 per cent higher to $US2.86 a pound, also up on the 2019 average of $US2.72.
And there is the prospect that the two could go higher still in response to global economic stimulus packages (silver has lots of industrial applications on top of its gold-like hedging properties).
The impact of COVID-19 on accelerating the digitisation of the economy has caused some dramatic stock re-ratings – like online meal delivery service provider Marley Spoon (ASX:MMM).
Its share price is up more than tenfold since its post-COVID low in March; that’s much more than for other high flying tech stars like Afterpay (ASX:APT) (+788 per cent) or fellow e commerce provider Kogan (ASX:KGN) (+402 per cent).
Money Talks is Stockhead’s regular drill down into the sectors and companies that investors have their eye on right now.
This week we hear from John Athanasiou CEO of Red Leaf Securities, who says there are other potential winners to be found in the ASX’s tech sector besides BPNL — from virtual reality to cloud computing — that have grown substantially in recent years, but have not got the recognition they deserve.
Over the past year, 101 of the 147 gold-focused stocks on our list have made gains – 60 of these by 100 per cent or more.
That’s a big jump from last month, when 38 gold stocks had recorded 12-month gains of 100 per cent or more.
Amazing stuff. $US1,900/oz, here we come.