Quarterly Performance Review
April 10, 2021
Firstly our apologies for the recent gap in getting out the weekly wrap. We have decided to now make it a bi-weekly wrap – mainly because it’s just such an endless hassle to write it and get it out each weekend! We also feel it’s more appropriate and timely that we give updates directly on each stock or sector directly now they all have their appropriate channels. This means the bi-weekly wrap will become more of a general club summary. And it may be the last written one because we also intend to start doing the bi-weekly wrap as a podcast - mainly to save time and effort. Let’s see how that works. We can always revert.
We’ve spent the last few weeks rejigging our sites, media and tech. As you can all see we have added several channels - including a channel for each new 10 bagger call - plus some for some of the more discussed multibagger calls and new sectors. If any of you want new channels for new sectors please just ask us.
In addition we have now established a Singapore based holding company for all our media, so we’re now at last a legal entity.
We now have over 700 members on Discord. The committee's intention – for now – is to grow the club to 1,000 members before we consider raising fees to start limiting the number of new members and also to give us a bit more income so we can further upgrade the club and its services. There’s still much we plan to do - but we’ll get there step by step. And once again we really value all your support and participation and we are happy to take your feedback good or bad - as we continue on our fun - and so far prosperous - journey.
We have also updated the main 10baggerclub.com website showing our new Q1 10 bagger calls. We have decided to show our new calls to the public each quarter - as this lets all members get set first and then hopefully brings new buyers in above us later. We are aware that there are an increasing number of people who are watching the website frequently but not joining up - (I guess they either need to muster more confidence or want to save US$100 now - and in return probably lose thousands in potential 10 bag profits by buying in later?)
We just added our Q1 2021 performance chart link on the homepage too. In the chart we use the highest percentage gain since our calls were made - (which of course looks more flattering to us) - but is - as far as we can calculate - the fairest way to measure our call performance, as all members can sell out or buy in to our calls as they see fit. Therefore it’s inappropriate to use a daily mark-to-market fund style performance list – we feel it’s fairer to honestly show the whole price range opportunity members have had to profit from with our 10 bagger calls.
Q1 2021 Performance Summary
In the Q1 performance we have listed the calls in distinct two blocks: Firstly our 13 official 10 bagger calls in 2020 and then our five 10 bagger calls in Q1 2021. Plus we’ve given an average performance for each group and then for all.
Our Latest 2021 Calls A Quick Summary
The average highest percentage gain in our 2021 calls was 177% - which is not bad given just a couple of months average owning them all. Both ETH and DYLO are currently pushing new highs and we remain extremely bullish on both counters. keeping them both as strong buys:
Ether - ETH
We still expect to reach at least USD 7,000 by year end and continue appreciating thereafter for the long-term. But It won’t be going up in a straight line of course so expect much volatility.
Deep Yellow (Option) - DYLO.ax
Should continue to rally well with the expected uranium rally over the coming months.It is after all the most highly geared uranium equity on the ASX. Which is why we called it. The only caveat is the fact (which we have explained in the DYLO channel) that the company retains the right to trigger-call this option if it trades consistently above 28 cents. If they do so we shall probably cancel our 10 bagger call on it - as explained in the DYLO channel.
Firebird - FRB.ax
We still remain bullish on our third 10 bag call of the year and expect it to climb higher as they undertake their upcoming drill program which should Jorc out and show quite how much Manganese they really have. We hold our target of $1.50- $2.00 for year end. More if nearby E25 rallies as we hope for.
DanaKali - DNK.ax
We are all growing to like DNK more and more. Since we first got involved at 29 cents, we have assisted them to: take out the stale overhang of sellers; booted out the stale top management; cut back their costs; increased their marketing; assisted them to raise A$ 20 million so they can now get to work. And we also believe they now have their full bank financing sorted out - and lastly we are soon expecting bigger players in the industry to try to get involved - either as a takeover or as a JV. Our expectations for DNK are that we should either all get a quick exit via a takeover bid hopefully at over A$1.20 or more – or – if DNK fully finance it themselves – we believe we could see this stock appreciate to ten bagger status and grow further over the coming years. It is a monster project, massively undervalued, and good for Africa and the world.
Errawarra ERW.ax + ERWO.ax
Are currently the only slight blemish on our record - being the only 10 bagger call we’ve made so far that has actually dipped below its original call price. But rest assured, we still hold out big hopes for a 10 bagger in this stock due to its small market cap (A$6 mill), its tight shareholding, the additional free options we have all obtained and the company’s strong cash position. Unfortunately (but kinda expected) there have been no great exploration results from their existing tenements to date. However, we recommend collecting ERW if it dips below 20 cents (its issue price in March) as we are now working on lining up to a stonker of a new deal to go into the company that could allow it to trade as high as $2.00 which is well into 10 bagger country if we include the free option. . We shall keep members informed - as best as legally possible - as the deal progresses, via the ERW Discord channel.
Our 2020 Calls - A Quick Summary
The average max percentage gain of our 2020 calls in Q1 was 493%. (This figure is taken from the price at which we originally called them) and it reflects a beneficial trait in 10 bagging - which is that the percentage gains in a ten bagger increase proportionally to the price rises so that later, even smaller price rises can reflect outsized percentage gains from the original buy in price.
Three more of our 2020 10 bagger calls hit 10 bagger status in Q1 this year, Mandrake MAN.ax, Bitcoin BTC and Energex ENX.ax. We still remain bullish on all three counters still calling them as buys.
In our first 14 months of operation therefore, 9 of our 13 10-bag calls have so far 10 bagged (or a lot more!) - that's a 70% success rate so far. But, given that we target 12-24 months for our 10 bagger calls, we still hope to improve this batting average during the call period as we still expect the following stocks to 10 bag during that time:
King Island Scheelite - KIS.ax and KISO.ax
Although having retreated quite a bit from their old highs recently (from a lack of news). We expect them to climb again soon with the hoped for announcement of bank financing being completed from the company very soon. That should be followed closely by either an announcement confirming a federal government grant or a new cornerstone investor to complete the equity part of the capex required for mine development – or maybe both! This will fully cash-up and de-risk the project and then we see the share going on up through 46 cents at least to 10 bag status. With the tungsten price continuing to climb by over 30% this year and looking strong we can see this stock going much higher next run up. For us at these lower levels KIS and KISO are no- brainer screaming buys.
Boab - BML.ax
We still hold out great hope for BML, mainly because it’s extremely undervalued in our books, and it’s been so boring the last six months (“buy ‘em when you hate them”, etc.) and the lead price (and now silver price) is climbing higher and we do expect another strong leg of the silver rally imminently, BML has just re-become a strong buy for us.
Temple & Webster - TPW.ax
Continues to grow its business well. This last half year its revenue up was 100% on the last half and its Ebitda was up 500%. While we feel the stock did get a bit overvalued before, we see it having good value again. It just won’t have an explosive rally like the resources stocks and cryptos can, but its a solid long-term buy.
Meteoric - MEI.ax
Unfortunately, its drilling in Brazil was delayed by Covid in the drill team but we are expecting some exciting results there soon which could well turn this stock into much more than a 10 bagger. However If the drill holes are duds we still like the counter due to its ozzie assets - plus the good management of Dr Andrew Tunks - and because we expect the current naescent gold rally to continue.
Our 2020 Calls That Have Ten Bagged Already
Element 25 - E25.ax
Still remains our strongest conviction holding. Despite the stock having undergone a nasty correction over the last three weeks - we still very strongly believe that is just a temporary correction (and strong buying op) - as happens to all big growth stocks on their way north from time to time. Everything is still on track with that company and we still see this stock moving significantly higher over the coming months. E25 must be close to announcing their first ore sales and therefore first income - which should only grow thereafter. We imagine they are in talks with some of the major battery and car making companies in the world now about their high purity manganese. An announcement of a significant joint venture or deal could happen any day so we all need to stay in it to win it, as we still see this stock moving over A$10 in the longer term.
Bitcoin - BTC
We still class as a strong buy and still expect the coin to reach US$ 100,000 before year end - probably by later September. Thereafter we may have to become a bit cautious, based on BTC proven cycles.
Chalice - CHN.ax
Is a beast beauty that just keeps on going from strength to strength. We continue to advise a hold in this share as it uses its newfound momentum and cash hoard from its Julimar PGE finds to open up new gold tenements – hopefully just in time for the coming gold rally?
Afterpay - APT.ax
Continues to grow its business but the share price is weakening as the hype over this former market darling diminishes, plus the long-term threat from some new- fangled crypto stealing its thunder increases. We had this stock as a hold but we are now suggesting this quarter that members still holding should sell on good days and move into some of our cheaper latest uranium junior calls.
As for De Grey Mining (DEG.ax), Wide Open Agriculture (WOA.ax and WOAO.ax) in Q1 we suggested members sell them. Not because we don’t like them – indeed DEG just hit another new high last week. It's just we think members’ money should perform much better if rotated back into some of our cheaper new 2021 10 bagger calls.
Overall, the net average highest gains from all the 18 ten baggers we have called in our first 14 months of operation is still an outstanding 1,771%. Despite last year being an exceptionally good year for 10 bagging,this is a very strong performance - and frankly we don’t know of anyone else in the equities world with a better performance? And if any of you members do - please introduce them to us and we’ll join them!
Our Four New 10 Bagger Calls Last Week
The new potential 10 baggers we called last week are all uranium juniors. When we have time - hopefully this coming week we shall write a short summary of the uranium market and why we expect it to rally much more in the coming months and why we expect all these junior stocks to ten-bag within the next 12-18 months. Thanks and we wish you a happy and prosperous investing 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.