Last Week Was A Colourful One With A Lot Going On!
February 7, 2021
Deals are now coming to us thick and fast as the 10 Bagger Club name increasingly gets around the market. We are now up to 390 members.
Next week we are going to set up a new channel just for IPOs on Discord as we see we are going to be offered more and more as more brokers and companies approach us.
Offical 10 Bagger Calls
King Island Scheelite - KIS.ax
Was the star of the week. The expected Tasmanian government loan came through and got good press coverage. (Front page of the Australian Financial Review) And, as we predicted, the stock revalued up into the twenties. It hit a high of 28.5 cents and the options reached a high of 15 cents.
That's a total combined value of 36 cents based on the 1 option for 2 shares, which is an increase of 555% than the 5.5 cents many members paid for them both when we took the placement 5 months ago.
As members took around A$1.5 million of stock in that placement we estimate those members have therefore made over A$ 8.3 million in just over four months just from the KIS deal.
Also, we estimate later members who have joined since the KIS private placement late have bought about another AU$ 1 million of stock outside the placement and have probably made (mainly on paper so far) another A$5 million in profit on top. Not bad for just four months.
And we believe KIS is most probably going much higher still. We still hold our original 10 bagger targets of at least 35 cents per share and 25 cents on the options – that’s 60 cents or more than a 10 bagger since our 5.5 cent call.
On Discord last week we recommended members take their starting capital out at 25 cents or above-and then free ride risk-free in the stock. Those who did so are now cashed up and ready to reinvest in the new opportunities which are coming. And several more are coming.
What to expect from KIS now? After such a strong rally the market should consolidate a bit. Over 90 million shares and options traded in the mid 20’s the last two days of the week. Much was just froth and traders playing, but there was also a lot of fundamental buying going on.
This makes us think the market should continue to consolidate between 20-27 cents for the next week or so. It should then be ready to move higher afterwards.
There are rumours of more government support, if that happens then it can climb again. That will be followed by an announcement of the balance of the private funding from a bank.
The stock should by then be in the mid to high 30s. There will most likely be one more cash raise in the mid 30s and then KIS are fully funded for production.
Energy 25 - E25.ax
Has drifted lower during the week after its failed attempt to breakout above $2 the week before. However, we are expecting more good news this coming week and think it should start to rally again.
We also believe an announcement is close for a potential deal on E25’s battery-grade manganese – but unfortunately, we don’t know if that’s coming in 2 weeks or 2 months. However, when (and if) it does come we expect a strong and immediate re-rate upwards on this stock, probably to the $3.50 or more mark.
Management has been busy building their mine, and doing all the stuff involved for that. Apparently, the bulk of that work is done by the upper-level management and they now have time to get back to the battery deal talks.
Fundamentally we still hold that E25 can reach $5-7 on this current deal they have and $10++ if a JV with a big battery maker is announced.
Afterpay - APT.ax
Just keeps creeping north with its expanding global business. It hit a new high of $151 now up 1,275% since we called it. Their business model looks stronger than ever with so few defaults. And as it’s US, UK and Canada expansion plans continue apace, we feel that it’s now early land grab in the space, making it the market leader, lessens the chance that any new DeFi, crypto, or any other competitor can easily dislodge it. Look at its chart for a picture of strong and steady growth. We still love the stock and are now inclined to put it back as a “buy “not a hold. No fireworks, just strong growth.
Chalice - CHN.ax
Fell back for no apparent reason during the week but still sits almost 2000% up from where we called it. Julimar their reserve continues to deliver with some new high grade seams being struck.
MAN.ax/MEI.ax/ENX.ax/BYH.ax our explorers, are all beginning to get ready to undertake drill programs and then announce some results. So we hope to see some exciting moves in them in the next few weeks. Next week we will try to contact them all and get more info on their plans. Let’s hope the gold price picks up a bit more at the same time to make things more buoyant.
BTC and ETH, our crypto picks, both seemed to have got over their one-month consolidations and now look set to move higher over the next months. We see BTC heading north to 50,000 a coin next and ETH towards US$ 3,000. It will be interesting to see which one of these coins 10 bags first!
We are now lining up some interesting new deals. The first one is a more speculative play starting next week.
We hear that two other groups are coming in to push CRL.AX, Comet Resources higher next week. They have invited 10baggers to join them.
If this works it will greatly increase our power to arrange placements and influence markets. Therefore we have agreed to join them and hope they are, and can do what they say. The plan is that we have two days, immediately after relisting to try to collect some CRL early next week.
It is on a trading halt having just raised cash. So, it should be trading again Tuesday and Wednesday. But go easy if your buying – go softly and don’t pay over 2.8 cents a share.
This is because given their projects and cash level we see still little downside risk in buying in at these levels (if the agreement doesn’t work) - however, this share is quite undervalued and its assets could well support move a lot higher even up to 8-10 cents.(if our agreement does work) For more details see my posts on discord during the week.
If we can successfully work together to publicise and revalue this stock upwards and hopefully make the market more aware of it and its potential higher value, we should be able to do the same together with further undervalued stocks in the near future, like BYH For example. I will write more about CRL and its assets and plans on discord during the week as the deal hopefully unfolds.
MSTR (MicroStrategy) and SI (Silvergate Capital), our bitcoin related multi-bagger calls in the USA that we called last November continue to go from strength to strength.
MSTR has now moved up 500% from 185 USD per share to USD 806 today and now has a USD 7.7 billion market cap. We now wished we called it as a 10 bagger as we see it doubling again from here. We are almost confident enough to call it as a new ten bagger after this rise. MSTR is Michael Saylor’s company which is really just a geared play on Bitcoin with a clever pilot at the helm. We continue to buy more MSTR.
SI has moved up 400% from 25$ a share to 125$, it now sits with a market cap of USD 2.4 billion and a PE of 93x! But this crypto related bank looks like it still has much higher to go. IPOs
We are trying to line up access to two IPOs in the next few weeks on the ASX, one is a manganese play near E25 called Firebird but it’s massively oversubscribed and we are now fighting to get a stock allowance for 10 baggers.
The other is a new gold explorer company called Cosmo.
We think both could rally nicely after listing.
We shall keep you informed on discord during the week as to what may become available.
Some Philosophical Thoughts About Our Club
The problem we are having now is with our on-going success we are getting offered more and more deals, and more multi baggers.
It’s getting to be like trying to drink from a fire hydrant.
We all only have so much money to invest and we can’t all dance at all the weddings, so we need to get focussed on the better deals only. We can of course put forward and mention all deals others for anyone interested(that’s what this club is about) but we the committee feel it’s better for all if we focus more and work together on fewer but better deals.
10baggers as opposed to multi-baggers. They are different animals. Multi-baggers are called by members on stocks that they think can jump up by over 100% but not by 900% or more, usually in the shorter term.
Clearly some members are good at finding these and thanks to them for sharing. It’s great to offer multi-bagger options to members, but multi-bagging is everyman for himself stuff.
The main point of this club is finding 10 baggers. Which is a different sport.
For 10 bagging the intention is all try to work together (if you choose to).
We find a special situation in which a stock is deeply undervalued (for whatever reason). We get all the information about how the situation can be turned around what management intends to do and can we help with money, promotion and market connections.
If we like it we can take it on. We then all get set in at cheap prices. It’s usually low risk going in so low, so we can each put more money in and get many shares cheaply.
Then we all put a shoulder to the wheel and help promote the endeavour. And if needed, help fund the company and help management develop the business, their PR and market awareness.
Then when it does reach 10 bagger status or thereabouts we can all make truckloads - just as you saw us doing with KIS.
Just one or two such successful deals per year can make us all millions if done right.
As newer members, see us doing this process such as currently in KIS and E25, again and again, and see that it is actually a very low-risk but also very lucrative business when done right, then they/you can get more confident to put more money into the bottom of the next deals.
A low entry price massively reduces risk and compounds your gains. Plus we can usually get free options to further mitigate risk and enhance profits - as you have seen in WOA, KIS, BYH, etc.
So please just keep watching how we do it, gain more confidence and tell more people about it.
We have confidence in our system after so many years. KIS is just one example, there will be more.
But one sometimes needs patience while 10 bagging, like the alligator waiting in a pond, there may be big gaps between deals, deals can take longer to materialise than expected, but overall, from our experience we know it is still much, much more lucrative and usually less risky than normal blue chip/ETF/Fund style investing.
Good luck all for next week.
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.