The Shenanigans Of WallStreetBets
January 31, 2021
This was an interesting week, dominated by the shenanigans of a Discord/Reddit chat group WallStreetBets retail investors attacking the big hedge shorters. A very interesting story with much more consequences to play out from it.
In our opinion, it's another step in the revolution in traditional finance. Just as so many other businesses have been disrupted/destroyed by the recent development of technology, lawyers, accountants, banks and hedge funds - the traditional preserve of the rich and powerful robber barons, - should be the next dominoes to fall - but will not go down without a big fight against the peasants.
It’s just part of the continuing democratisation of finance - the revenge of the little guys with their new-found weapons of blockchain, smart coins, social media and all things DeFii.
It’s partly also why we started this social media finance info club. It’s the way of the future. However this is not the place to delve so deeply into such epochal philosophical concepts - it's just the weekly wrap!
The end result of the trouble was that the US and most international markets fell by 3-4% during the week, softening most sectors and stocks, particularly commodities which dampened down many of our 10 baggers.
Our 10 Bagger Calls
King Island Scheelite - KIS.as
Started the week promisingly with a run up to 16 cents on speculation that a govt financing deal should be announced last week. Although we now hear that the deal was done on Friday but no tr5ade halt was issued. So hopefully we start the next week with a trade halt and then in normal markets expect a firm rally. KIS retreated back to 13 during the week due to the delay in the news and the softness of most other stocks.
The current poor sentiment in the market doesn’t help, But If indeed the government financing deal is done, then next week, if the general markets are not too bearish, we should hopefully see KIS rally up after the announcement to test the 20 cents.
Element 25 - E25.ax
Started the week strongly based on their bullish Q3 report which kinda confirms to us that this counter should move on up to AU$5-7 in the coming 12-18 months just from their current business on hand.
However, if - as we expect - they get a deal done soon with one of the big Asian battery makers it can go much higher - over AU$10 a share. The share price reached an all-time high of AU$1.975 but couldn’t break through the AU$2.00 level and fell back later in the week.
Production is expected by April 2021, just 8 weeks away!
Construction continues at E25’s Butcherbird project.
Deep Yellow (Option) - DYLO.ax
Our newest 10 bagger call fell strongly from its last high of 23.5c back to its original call price of 12 cents. This was /isa good chance to pick some up- as I said last week at the lows. It bounced back a bit to close the week at 14.5 cents. It fell along with all the global Uranium stocks which had run up a lot (200-300%) in the last two months on the mere expectation of a uranium price rally. Now they should re climb again more fundamentally as evidence of the expected uranium shortage and price rise actually occurs this year. Uranium climbed last week.
Most all our other 10 bagger calls fell during the week pretty much in line with the market retracement:
Chalice - CHN.ax
After reaching a new all-time high of $4.92 the share price had a big hit like the rest of the market, closing at $3.92 Friday
Mandrake - MAN.ax
Rallied from 8c to 9.5c along with Chalice moved north. And then followed them the whole way down to close out the week at 7.9c, back where they had come from.
Enegex - ENX.ax
Is now also another possible beneficiary of Chalice’s success as this little shell company with only a tiny A$10.6 mill market cap has also now entered the fray by taking.
Afterpay (APT.ax) Sold off to $135.
Temple and Webster (TPW.ax) Heavily sold off through the week along with the market.
Meteoric (MEI.ax) came out with a strong quarterly report (worth reading) and was one counter that didn’t fall in the week. They are gearing up to drill into their exciting big EM anomaly in Juruena in Brazil.
Bitcoin and Ether have been stuck in their correction phase ( a bear pennant) for nearly 3 weeks now, they looked like they may break out when Elon Musk tweeted at 2am he was getting behind bitcoin. But due to the time the market was not sure if he was just doing another one of his late night stoned and drunk tweets, so, the rally petered out.
If he retweets about it sober in the day this week and shows he really means it, the price could well launch off north again. Both coins need something to kick them north out of the bear pennant, otherwise they will just hang around here a bit longer or maybe even fall back lower if they breakout below the bear pennant.
The action this week took place amongst our mult-ibaggers, several calls were made by members. @lunu’s Novonix (NVX.AX) - battery tech; and Anson Resources (ASN.ax) - minerals exploration and development- calls both ran up by 200 and 400% and then fell back a bit near week’s end.
@fister’s Strategic Elements (SOR.ax) - AI and mining tech - retraced a bit too but is still up over 100% since its call the week before
@Jeev called his first multi-bagger as Gilat Satellite Networks (GILT) on Nasdaq and the stock made a 49% gain before slipping back a bit at year end. It’s an Israeli based satellite networking company with good promise. Unfortunately, although we love the concept for long term growth, we in the committee are not smart enough to know if its share price is cheap or overvalued right now. But thanks for the call, Jeev, well look at it next week a bit more if we have time.
The call that took up much attention last week was made by a new group of Australian/ S African we are now working with who called out Renergen (RLT.AX) - a helium and gas resource developer. They previously called out BPH Energy (BPH.AX) just before it shot up 500%. So we looked at RLT – but within a day or so it took off, jumping up 250%, and falling back Friday afternoon to mere 100% gain in the week! Some of us did trade in it and I am holding some free-riding as the same group thinks the stock could go on up to 3.50 again. Let’s see!
Allegiance Coal (AHQ.ax) @Phuket Guy’s multibagger call rallied well early in the week and was sold off at the end but ended up 10% for the week. This counter looks like it should climb significantly higher in the coming weeks as they near to production. It is remarkably cheap and undervalued.
Bryah Resources (BYH.ax), our highly undervalued multi-bagger call from 6c, slipped back from 7.2c at the start of the week to 6.3c a victim of the generally weaker market. Holders need just wait a while as the company gears up for their drill campaign in February. Again we advised buying this stock as it is undervalued. It is unlikely to go lower but could shoot higher fast as we
In other news cobalt also climbed again last week to US$38.30 which makes Celcius Resources (CLA.AX) start to look cheap. This is not one of our calls but it is owned by many in the club from before. Its main focus is in gold copper in the Philippines but at these prices for copper and cobalt, its huge cobalt resource in Namibia could start to become valuable again.
Disclaimer: No financial advice given. You are encouraged to do your own research (DYOR) on the above mentioned companies and their strategy/progress and make your own financial decisions.
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