10 Bagger Club Half Yearly Performance Report H1-2021
August 5, 2021
Performance of the Clubs Official 10 Bagger Calls
20 February 2020 - 30 June 2021
DI: Date Identified, DE: Date Exited, HG: Highest Gain, HGSI: Highest Gain Since Identified Whilst Active
|DI||DE||HG in |
|HG in |
|DEG.ax | De Grey Mining||Feb-2020||Q4-20||3,100%||3,100%|
|CHN.ax | Chalice Gold Mines||Mar-2020||2,014%||3,961%||1,947%||3,961%|
|WOA.ax | Wide Open Agriculture||Mar-2020||Q4-20||1,750%||1,750%|
|WOAO.ax | WOA Option||Mar-2020||Q4-20||12,400%||12,400%|
|APT.ax | Afterpay||Mar-2020||Q2-21||1,022%||1,355%|
|BTC | Bitcoin||Mar-2020||435%||1,087%||652%||1,087%|
|E25.ax | Element 25||Mar-2020||1,396%||2,422%||1,026%||2,422%|
|BML.ax | Boab Metals||Apr-2020||875%||875%||0||875%|
|TPW.ax | Temple & Webster||Apr-2020||603%||603%||0||603%|
|MAN.ax | Mandrake Resources||Apr-2020||900%||2,054%||1,154%||2,054%|
|MEI.ax | Meteoric Resources||May-2020||533%||592%||58%||592%|
|ENX.ax | Enegex||Jun-2020||650%||1,900%||1,250%||1,900%|
|KIS+O.ax | King Island Scheelite||Oct-2020||191%||782%||591%||782%|
|Average max. gain of 2020 calls in H1-2021||742%|
|ETH | Ether||Jan-2021||506%||506%|
|DYLO.ax | Deep Yellow Option||Jan-2021||250%||250%|
|FRB.ax | Firebird Metals||Feb-2021||323%||323%|
|DNK.ax | Danakali||Feb-2021||121%||121%|
|ERW+O.ax | Errawarra Resources||Mar-2021||50%||50%|
|92E.ax | 92 Energy||May-2021||46%||46%|
|EL8.ax | Elevate Uranium||May-2021||163%||163%|
|UWEFF | U308||May-2021||82%||82%|
|KTG.ax | K-Tig||Jun-2021||22%||22%|
|ZEU.ax | Zeus Resources||Jun-2021||283%||283%|
|Average max. gain of 2021 calls in H1-2021||185%|
|Average max. gain of active calls in H1-2021||449%|
|Average max. gain of all calls since inception February 2020||1,510%|
In the first half of 2021, we had two more 10 baggers: Bitcoin (BTC) rose by 1,087% from its call price, and Energex (ENX) rose by 1,900% from its call price.
In addition, three of our 2020 calls also 10 bagged again, adding a further 1000% to their original call prices: Element 25 (E25) was up 2,422% by March, Chalice (CHN) was up 3,961% by June, whilst Mandrake (MAN) increased to 2,053% by June.
The way we measure our calls - from our original call price to their highest percentage gain since, - is somewhat flattering. However we are an information sharing club, not a fund, and members choose themselves when to invest. So we believe this is the fairest way to reflect the range of profit opportunity members had access to.
Our performance is down somewhat from last year. But, as we have stated before, 2020 was a truly exceptional year for 10 bagging due to the market’s sharp Covid led fall soon followed by a strong rally.
However, that said, the average overall highest gain for our 19 active 10 bagger calls of 449% in the first half of this year is not too shabby.
Nor is the 1,510% average highest gain amongst all 23 of our 10 bagger calls we have made since the club’s inception in February 2020, that’s in just 16 months. The average hold time for our calls as at June 30, 2021 to create this performance was just over 8 months. In all honesty, we are not aware of any other global equity research or stock-picking service which has outperformed us in the same period. Additionally, as we are a club, not a for-profit service, our members got access to this superior performance at a fraction of the cost that most other decent stock-picking services charge.
Changes To Our 10 Bagger Portfolio
Many members have commented, and our committee agrees, that our 10 bagger portfolio is getting a bit too large and unwieldy. Particularly given the numerous good multi-bagger and crypto calls also being made by members. So this half-year round-up we will reduce the portfolio to make way for some new calls we are planning for the second half of 2021.
As we make very clear, our primary criteria is to try to find stocks that we think will 10 bag within 18-24 months or less. So far, 69% of our 2020 calls have already 10 bagged or more… three 20 baggers, one 30 bagger, one 40 bagger, plus WOA option’s freakish 120 bag!
Other calls, such as Boab Metals, Temple & Webster, and Meteoric Resources, have also risen significantly, and these are stocks we still like, but now look unlikely to 10 bag again from these current levels. So for the many new members joining they probably just look like historic clutter.
We could keep these older calls in the portfolio for longer, in the expectation they will eventually 10 bag from their original call price in our targeted time frame. This would improve our batting average and make us look smarter. But, frankly, this is not much use to new members. So we are going to bite the bullet and cut them out from the portfolio early to reduce the portfolio down to 15 or so of our current higher conviction calls, and to make way for some new calls.
In our experience,10 bagging is more successful by concentrating on fewer stocks, going in big early, assisting the company where possible, peeling out as the price (hopefully) rises to de-risk and then ideally to free ride in them.
Cutting and running from a stock that has already moved up, and is now more fully valued, or in which your conviction has dropped – to switch into a new, cheaper or and more promising ones – is all part of successful 10 bagging. Remember, stay flexible, never marry a stock, as that stock never cares about you. So it’s fine to cut and run to a new lover without feeling guilty. That said, we still do fundamentally like most stocks we have picked, both in the shorter and longer-terms, and members could probably do a lot worse than taking a spread of these 10 bagger calls longer term to help in diversifying their portfolio.
But we are not in this club for diversity and security. We are here to play in risk-on calls designed to hopefully make us serious money quickly. And that doesn’t usually happen so well with, for example, your 23rd highest conviction stock choice, etc.
We do of course suggest that members take care of the diversity and security of the more conservative bulk of their portfolio elsewhere, or with people who specialise in that (or check out our high-yield stocks channel) and just use a part of your portfolio to invest in these more volatile10 baggers calls.
Calls We Have Exited
De Grey Mining (DEG.ax), Wide Open Agriculture (WOA.ax) and Afterpay (APT.ax)
We exited our early calls DEG, WOA and WOAO at the end of 2020. In May 2021 we also suggested members exit APT, as we felt it was looking very well valued. Although whilst writing this report we note that APT has just received a A$39 billion takeover offer from US giant Square.
Aura Energy (AEE.ax)
This has, unfortunately, never had a chance to fly, as the ASX told them they could not relist last May as expected. So we won’t include AEE in our portfolio as members haven't had the chance to buy it yet! We now hear that AEE could relist in October or November.
Therefore, the five above stocks were not counted in this performance summary.
Calls We Are Removing From The Portfolio
Boab Metals (BML.ax), Mandrake Resources (MAN.ax), Meteoric Resources (MEI.ax), Enegex (ENX.ax) and Temple & Webster (TPW.ax)
We are now dropping BML, MAN, MEI, ENX, and TPW from our official10 bagger portfolio. They have all 10 bagged, since we first called them. We still like these stocks and believe they still have much promise to move higher over time, but now feel our money can probably be better deployed elsewhere. We shall move them to a new section: “retired calls”.
U308 (UWEFF OTC)
Our only non-Australian (Canadian listed) 10 bagger stock call will also be dropped. This is for several reasons:
- They sold off their resource in Argentina which to us was their most promising uranium asset.
- We have also found it was hard to keep a close eye on it, talk with management and keep a good handle on what’s happening due to time zone differences. It trades crazily and is quite illiquid.
- We already have four other uranium junior plays in the portfolio.
UWEFF is our worst performing pick to date, being one of only three of 23 of our 10 bagger calls that have ever dipped below their initial call price. UWEFF was up 80% at first but has fallen 40% after selling off their Laguna Salada resource in Argentina. However, now with a minuscule market cap of only US$3.7 million and still owning some 30 million lbs of uranium in South America, we believe this stock could easily 10 bag from down here in the expected uranium bull run. But as it is hard to follow and trade-in and not many members bought it, we will move it to multi-bagger status.
A Brief Summary Of The Calls Left In The Portfolio
The Remaining 2020 Calls
Remains the gift that keeps on giving. Whilst up almost 4,000%, and looking fully valued, we are considering dropping CHN. But the company keeps hitting more targets at its Julimar project and is building up a decent portfolio elsewhere so we now suspect it will become a strong takeover target.
Element 25 (E25.ax)
We still believe E25 has a good chance to almost 10 bag again from here, despite its 2,000% rise since our first call, and its recent softness. It has no debt, lots of cash, and should have increased cash flow over the coming years which alone should take its share price to $4+. Additionally, we are convinced an announcement of a JV with a big car or battery manufacturer could be forthcoming soon which could take it over $10.
Despite its recent sharp 60% correction, and having already done one 10 bag for us since we called it, we believe it will continue to rally longer term and 10 -20 bag again from here over time. We still hold our approximate US$100,000 target for around year-end, but it will continue to be a volatile ride north. For more information head to our crypto channels where smarter crypto minds reside. Interestingly, our crypto channels are now becoming the most used channels in the club.
King Island Scheelite (KIS.ax)
We will continue to hold this with conviction because:
- We still like the fundamental story.
- We expect that the long-awaited financing deal should be announced soon. This should allow the stock to trade significantly higher and hopefully over 45 cents and into 10 bagger country. This will be especially true if the also long-awaited A$15 mill federal grant is announced.- which we still expect.
- Lastly, as KIS was our first classic 10 bag play since the club really began to expand its membership. We classically discovered this promising but overlooked stock early, and got set via a placement at 5 cents with free oppies. Members have peeled off as it rose so most of us are now free riding. So lastly we want members to ride it to 10 baggerdom and experience a full classic 10 bag roller coaster ride from start to finish. Plus for newer members to watch and understand this process better.
Our 2021 Calls
Ether, our first pick of 2021, still has massive bullish fundamentals, and we see this as a 10 bagger in the future. Now, during this current crypto correction, is a good time to buy or buy more. Just keep averaging in. We expect it to go through USD7,000 (our 10 bag mark) probably in later this year, and continue higher.
Deep Yellow (DYLO.ax), Elevate Uranium (EL8.ax) and 92 Energy (92E.ax)
We remain very confident a uranium bull market is coming, we think most uranium stocks will rally hard over the coming 24 months. And, if the past is a prologue, these junior uranium stocks should move up hard when it hits. There is great research and discussions about these stocks on their respective channels plus more general chat on our uranium channel. The expected ride north will be volatile but hang in there, even if it takes a bit longer than expected.
Errawarra Resources Ltd (ERW.ax)
As those members since March are aware, we first called it a bit over-ambitiously, as we had agreed we could do a placement for members and then put a deal in. But as so often with sod’s law, things changed just after we called it. Nevertheless, with a tiny $7 mill cap, $4.5 mill cash and $4.5 more coming from expected options conversions, this tight, well-cashed-up shell company is cheap as chips here.
We are also aware that moves are progressing forward to hopefully inject a most prospective new project into it which we believe should cause this stock price to take a nice move northwards. This is high on our buy list.
Firebird Metals (FRB.ax)
We got into this new manganese developer early at its IPO in February. Its fundamentals, and those of the buoyant manganese market, make us confident this counter could well 10 bag to $2.00 or so within our targeted time frame. We also look at it as almost a geared option on E25’s presumed success.
Danakali (DNK.ax) and K-Tig (KTG.ax)
These two beasts are of a different nature to the others in the portfolio: both are bigger companies and both hold remarkable assets with the ability to develop into world leaders in their field. But these could be longer-term growth plays. However, if managed right, both companies could go very high over time, and we feel they have limited downside due to their strong fundamentals - even if the overall markets take a tumble. Therefore we are very comfortable sitting in them longer-term, these are both superfund or bottom drawer stocks.
That said, both stocks also have the chance for sudden big re-rates in the short term. DNK if there is a buy-out bid or bidding war (which we hope for and expect). For KTG, if they get any positive news about either the Australian military or other huge international government work contracts in which they are involved in, and seem to be progressing well.
Called in June, this was our last call of the first half. Although we called it as a micro-cap at just 3 cents, several members had been collecting it lower. Many members got set in a private placement done for the club at 3 cents. Despite already running up 300-500% for many members, ZEU still has a relatively small market cap of only A$19 million.
The company has a US$1.6 billion Chinese state mining company as its main shareholder, its share structure is extremely tight, and it is now ripe for some hopefully juicy new projects to be injected into it, and we hold great hope that Zeus could become a 10 bagger this year.
Numerous good multi-bagger stocks and alt-coins were also called by members, with several moving up 500% or more, and some 10 bagging. There is no room to discuss them all here, but there is plenty of information on them, and new ones, in our club’s multi-bagger and crypto channels. We thank those members who have made these calls and provided the rest of us with new ideas, great research and information.
Membership: Fee Increases and Size Limit
Our club now has over 920 members, up from 12 when we started just 16 months ago. In a recent questionnaire, members voted to limit membership to 1,000 and to increase the annual fee to US$500 so the club can suitably self-finance itself into the future.
The founders and committee, however, decided to leave existing members paying just US$100 per year, for at least one more year, as a thank-you for joining early and helping to create this club in the cool style the founders envisioned.
The committee has decided to allow membership to grow to 1,500. To cover the costs of administering the club, new members' fees have increased to US$200. After 1,100 members, the fee will rise to US$300 up to 1,300 members and finally will increase up to US$400 for the last 200 members up to our 1,500 limit.
New Plans for The Club
We will be releasing a report and video on the committee’s new proposed ideas for the club. This will be released on Discord for members to discuss, and not be made publicly.
Some Promising IPOs and New Deals Planned
Meanwhile, as the club grows stronger, more and better opportunities are now being offered to us. We are now working on some very exciting new IPOs in which members will get priority for both IPO, private placements and also pre-IPO seed capital opportunities. These new proposed deals look most exciting and are expected to 10 bag quite quickly. More info will be disclosed soon on Discord.
A Note To Non-Members
To non-members reading this report, who are considering joining, we believe the expected returns on these new IPOs and deals being planned for later this year could be extremely significant and should earn those who participate in them far greater financial freedom in their future.
The potential returns should far outweigh — by a 1,000 fold or more, the small fee for becoming a member. So if you are considering joining, then we would advise you to hurry, as membership is accelerating, places are limited, the join fees are rising and the deals and good calls keep coming.
A Final Word
And lastly, another big thank you to our whole community, especially to all those members who have helped out the club this year: doing research, sharing knowledge, making new calls, introducing deals, arranging local meet-ups, etc. — you know who you are. And to the rest of you for helping to create this club into what it is. Onwards and upwards into the remainder of 2021.
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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