The Wrap: The Hunt for Green October
October 12, 2021
Bears Have Predicted Over 16 of the Last Three Major Crashes
It’s pretty easy to get people scared of a market crash. October is the month with three of the worst market crashes since 1929, so each mid-September, like some annual tribal ritual, the gloom and doomers get all excited and vocal and manage to find lots of reasons to give the markets the heebie jeebies. (Evergrande, debt-ceiling drama, etc.) less experienced punters can easily get caught up in this annual dance and many sell off portions of their shares “just in case”. This has, historically speaking, made September and early October the worst time of year for stocks. However, as most October’s the sky doesn’t actually fall-in on our heads, and the bears usually have to slink despondently back to their caves.
The flip side of this ritual October dance however, is that from historic data late October is the best time of the year to buy stocks, as the October scaredy cats usually come FOMO-ing back in with their money and the bulls come back out to play, this usually propels Novembers and Decembers to be amongst the strongest months for equity performances. Indeed the bulls usually tend to stay in the driving seat most years right through to April (historically the best month of all for equities), which most years makes the next few months, the best performing time for stocks.
Things usually then begin to get a bit mushy by late May. You’ve all heard the saying “Sell in May and go away”, and then we hit the summer doldrums which usually culminates in the above mentioned October bear-fest. So having now just passed through the worst five months, and the bear-fest we can now hopefully look forward to some exciting moves in our equity calls over the next six months. So back up the truck and cross your fingers guys!
We’ve Had Three More Ten Baggers In This Last Month
Despite enduring the above said end of summer malaise in equities, we did manage to record three more 10 baggers over the last month in our crypto section. So a big shout out to @lunu and the crypto team (you know who you are) who have already supplied members with four 10 baggers this year and are getting confident they might squeeze two or three more in before year end!!. This impressive performance from our crypto-heads, along with two equity 10 baggers so far this year brings us up to six 10 baggers already. With two of the best equity trading months of the year still to come, we actually anticipate outperforming the seven 10 ten baggers we achieved last year.
There are five uranium stocks amongst our stable of the fifteen 10 bagger calls we have made so far this year - all of these are already up between 300 and 1,200% this year since we called them - and with the uranium market looking poised to move substantially higher we are hoping for some more 10 baggers from amongst them as well. We expect this uranium bull run to continue over the coming 24 months with fat gains to come in most of the 60 listed uranium stocks in the world. So try to buy them on weakness and in steps - don’t just FOMO in, as they do all have correction phases. To learn more go to our uranium channel.
Here’s a brief overview of those uranium and other stock calls:
92 Energy (92E.AX) - Target price $2.60 buy under 80c
The micro-cap uranium explorer, with incredibly low shares on issue, and most promising tenements in the Athabasca Basin, held strong in the recent uranium stock correction. Even a capital raise for A$7.15m million at 72c didn’t dent the share price too badly. The Canada-based company is now well positioned to continue its exploration activities following very promising recent results. This stock has the opportunity to be one of our biggest winners should our Uranium bull market thesis play out, and their drill rigs continue to hit more uranium.
Commentary: Excellent uranium exploration targets in Athabasca Basin Canada, and an experienced exploration team. If they keep getting good hits in their exploration this still small cap can run further and faster than most in this nascent new uranium bull market. Be aware it’s an exploration play so full on, high risk so DYOR and don’t put more than 10% of your portfolio in it.
Deep Yellow Limited Options (DYLO.AX) - Expiring
NOTE this option expires on 29 October don’t forget to sell it by Wed 27th at the latest!
The acceleration trigger was exercised by DYL management, meaning investors in DYLO now have until 29 October to sell or convert their shares to DYL for 50 cents. Please see the DYLO channel on Discord for more information, and, as always, ask any questions you may have. Club members with good knowledge, or the committee, will endeavor to respond promptly. We shall then transfer our DYLO call proportionately to DYL as many members are choosing to convert their options to take up DYL.
Elevate Uranium (EL8.AX) - Target A$1.60 collect on dips or pull backs below 60c
EL8 announced it had identified mineralisation at Namib IV on August 10 and later the addition of Dr Andy Wilde from 92E. The Namibian explorer, like all Uranium stocks, took a breather to sit around the 50c zone during the downturn, but bounced back fast as uranium sentiment returned. Hold onto your shares because we believe this one to be among the most undervalued uranium stocks that can fly under its low SOI when a potential bull run goes again.
Commentary: EL8’s large uranium resource should allow it to still climb much, much higher in the expected uranium bull run over next 18 months. This is the second best valued uranium stock on the ASX in our opinion._
Zeus Resources (ZEU.AX) – Suspended
Zeus continues to be in an ASX suspension as the committee continues to work with management to try to get this stock back trading ASAP. The club committee continues to give comprehensive, open updates on the club’s Discord channel, so head there to keep updated with the latest on ZEU.
Aura Energy (AEE.AX) – Collect up to A$0.25
Aura exploded upon relisting after its long suspension, hitting the 35c before settling at 26c to create some instant 10 baggers for those who got in on the rights 10 bag call at 2.6c. AEE will offer a 1 for 3 bonus loyalty option coming soon to add more value for holders. But this will also dilute the shares on issue by 33% so either buy it before the ex-date (in about 10 days) and make sure to take up the loyalty options at 1.5c (which will also 10 bag on day one) or wait and buy it after the ex-date. These gains from AEE are a deserved reward to long term shareholders for waiting out the long suspension Aura had been in. A recent A$10 million financing offtake agreement with Curzon added to the newsflow for the Mauritania developer during a downward time for uranium stocks.
Commentary:This undervalued uranium play in Mauritania has a large shallow resource of 56Mlbs plus a big gold resource. In Sweden it has a huge vanadium asset and is expected to be able to settle a court case with the Swedish government for over A$100 mill more cash (same as its current market cap!) Apart from its other assets we consider that AEE is the cheapest Uranium stock in the world with significant jorc’ed reserves. Also we expect AEE should soon be added to the big uranium funds buy lists - and as we expect them to have over US$5 billion to aggressively buy such stocks holders this SP should be heading much further north over the next 20 months.
Industrial Minerals (IND.AX) – Target A$2.00++ collect under 40c
After falling as low as 22c in August, Industrial Minerals has steadied nicely since and recently returned to the 30c zone. A recent chat with its CEO is now posted and available to read on the IND Discord Channel, but it’s safe to say the discussion left us pretty bullish about this stock. And It’s been put back to the top of our Best Buys Now list. IND recently announced an air core drill rig had been secured for up to 10,000m of drilling. We strongly recommend it as a buy and the message remains the same; average in bit by bit from here or lower.
Commentary: This recently IPO’d silica sands developer is cheap down here. Most members started accumulating it in the low 20s. Still good to load up slowly till about 40 cents - but go slow just take your time, buy on weaker days. This is a very tightly held company. We expect this to start moving on news later this year and in the first quarter of ’22, and to just climb climb and climb from here with the odd small correction. We have a target of between $2 to $8 on this stock within 24 months. This is a potential 20 bagger if all goes as hoped for (which as you know id always a big if) for more info go to the IND channel for the recent update after our chat with the CEO.
Element 25 (E25.AX) – Target A$6.00 ++ strong buy on dips below A$2.20
While we wait for some action with E25, check out this video from Mining Network highlighting the potential high purity manganese supply deficit. Work is advancing on the Stage 2 expansion of the Butcherbird Project and feasibility study programmes to produce battery-grade high purity manganese sulphate, which will give this share price an even bigger boost. Petra Capital in Sydney recently released a research note with a $3.98 price target on Stage 1 alone. This sent the share price back to $2.00. We still wait patiently for what we believe is an imminent announcement of a big deal on its high purity manganese that can send this stock considerably higher despite it being up almost 2,000% already from our first call.
Commentary: This manganese producer is in production tightly held, has no debt, a strong cash balance and no debt and is making money. We also feel very confident they are getting closer to a big deal with an automotive or battery manufacturer for their high purity manganese which can spike it much higher on the news, we just don’t know when.
King Island Scheelite (KIS.AX) – Target $A0.40, collect up to 20c
KIS finally announced the completion of its long awaited A$31 million equity raising to redevelop the Dolphin Tungsten Project, now reaching the targeted A$88 million. With the placement at 14c, the share price has recently approached that level, meaning buyers can enter at the same price at the placement, or possibly lower. While this Tungsten stock has been disappointing this year, especially for those that bought in the 20c – 30c levels, it appears there should be blue skies ahead from these levels and the club expects this stock to begin moving upward soon.
Commentary:This prospective tungsten mine is now fully derisked with all financing in place and within two years should be making around 5-6 cents per share. - this is a comparatively very safe play. It should now make a nice climb up gradually starting in November and December or so towards mid 30s over next 18 months or so. That’s almost 100-200% over 24 months with very little remaining risk in our opinion. This is accepting the fact that the tungsten market is small and volatile - but we expect it to rise over the coming years as tungsten is in very short supply and there are few other western producers in the world. If the tungsten market climbs considerably higher (which we hope, expect and pray for) of course so will our price target for KIS.
Firebird Metals (FRB.AX) – Target A$2.00+, collect under 60c
Firebird announced very positive ore sorting results recently to continue the steady build of this potential manganese producer. Assay results of its maiden RC drilling program at Oakover are expected to be reported by the end of the quarter. Hold onto those shares if you own them because this has very low shares on issue, and they are very tightly held.
Commentary: This manganese explorer is now embarking on their drilling program to define their DFS and NPV and based on our knowledge of their tenements good news about their manganese holdings and drill results so far is expected for the next few months.
Danakali (DNK.AX) – Target A$2.00 collect it under 50c
The price of potash continues to soar, but our Danakali lingers in the 40 – 45c zone for what seems a long time now to investors. Some positive news came out that now hints that the long awaited deal for the final equity portion is underway. This will fully finance this company to allow it to progress towards development of this huge world class asset. If so this should have a beneficial effect on the share price. Stay tuned.
Commentary: A best in the world asset. Potash prices keep rising. Large bidders are circulating this undervalued resource. Concrete news about its financing package or buyout offers are expected soon, hopefully giving it a significant re-rate and allowing it to grow or we may expect other bidders to come in the market to overbid. This is a vast project and one that is very good for Africa and mankind – that also matters to us in the club too.
Errawarra Resources (ERW.AX) – Target A$2.00, collect under 20c or even up to 30c
The alligators continue to wait in the muddy waters for ERW. The stock has returned to normal day-to-day life following a quick fling with 40c. Just remember how fast this A$7 million market cap company with only 32 million shares on issue can move when the time comes.
Commentary: This tight cashed up shell has a sub AUD 7 mill market cap, and almost that amount of cash. Also we believe a sexy new deal may go into this company very soonish. Buy hold and wait for the action to start.You don’t want to be FOMOing in when it kicks off like some did in the smaller uranium stocks in the recent rally. If and when the expected deal comes in we could see this open with a jump after the announcement and head towards 70 cents, then move up over time. but big caveat – the deal’s not done yet! So far it's been a bit like waiting for Godot for members since we called it last March. So if you want to hopefully surf with us, get on your board and paddle out in the calm sea and wait for the big wave, with your fingers crossed like the rest of us.
K-Tig (KTG.AX) – Target A$4.00, collect up to 45c
Another victim of the market volatility in September and early October, KTG fell to a very tempting entry zone around 30c recently. The company, which owns a most disruptive thick metal welding technology, recently announced very positive news with a successful completion of the first round of weld testing under their MOU with South Korean giant Hanwha. K-Tig is a long hold but one that should be seriously rewarding in time.
Commentary: This has the potential to fly very high over the coming years. It’s slowly building up its business of selling its welding technology but meanwhile involved in trying to catch some mega contracts in the nuclear dismantling space, government armaments contracts in Australia and US with Hanwa, and refinery and pipeline worlds. They are quite progressed on three contracts if any of them land, we believe this stock can 10 bag overnight. In the meantime we see limited downside. So it’s a good long term hold and more patience needed here.
Multibagger Stocks Update
There have been a few new calls added to the multibagger section, including the club working together to check out possibilities on members calls on the waste management company M8 Sustainable (M8S.ax), and New Talisman Gold (NTL.ax). For more on these, go to the Multibagger Stock Calls section on Discord.
Meanwhile Invictus Energy (IVZ.ax) is sitting steady around A$0.145 (up 300% this year); Queensland Pacific Metals (QPM.ax) up 800% this year and still looks strong; Allegiance Coal (AHQ.ax) softed a bit with the iron ore weakness, but is still up 100% this year. Celsius Resources (CLA.ax) SP is still sitting looking washed out and unloved at 2.7 cents - but big things seem to be going on with its huge Philippine copper/gold projects. As they say in the commodities markets, “If you’re not a contrarian you’ll probably be a victim”. ASN with its array of good projects (up 300% this year) remains undervalued to us.
Our former Canadian uranium 10 bagger call, U308, jumped from 11 to 52 cents in just a few days last month, now sits at 34c but should still get well over US$ 1.00 this uranium bull run. And Markinphuket’s contrarian call on potential turnaround story HK retailer Esprit Corp (HK 033) still bounces along the bottom at 68 cents (down from $15) looking very cheap and waiting for next quarter’s numbers to see if its turnaround can be sustained.
The recent month in crypto has been an exciting, eventful and rewarding for 10 bagger members. We have seen a lot of volatility and secured two 10 baggers, Nexus and Orion Protocols.
We’ve also added a beginners guide channel on Discord, which was warmly welcomed by many club members taking their first steps in crypto.
Starting with the King of crypto, Bitcoin, members who own Bitcoin have benefited this month from a rising price. This month, BTC has increased from $45k up to $62k. Bitcoin is looking bullish again, we expect it to soon surpass it’s all time high shortly and run-up into the $70k range. The price is being driven by an increase in Bitcoin usage, plus two of the largest catalysts in Bitcoin’s eventful 12-year history are happening:
Firstly the integration of Bitcoin wallets into your Twitter account via Strike by using Bitcoin’s Lightning Network. This would enable a user-friendly, instant, and free transactions of not just Bitcoin but also fiat (USD) to anywhere around the world. The disruption potential here is enormous! Keep an eye on Twitter for more announcements.
Secondly, news broke early on Friday that the SEC is soon set to allow its first Bitcoin Futures ETF, sending the price of BTC past $60k. The SEC is reviewing around 40 bitcoin ETF filings with multiple decision deadlines on futures-linked products hitting next week. According to Bloomberg, the regulator is expected to approve at least some of them, clearing the way for trading to begin maybe as soon as next week, so stay tuned.
Our target remains $100k+.
We continue to advise holds on Ether and TerraLuna coin which 10 bagged for us last month and we expect both coins to continue to increase in price and hopefully to 10 bag again from here.
We have been busy making preparations for our members so that they can get themselves set to take part in the IDOs (Initial Decentralised-exchange Offering) of these projects. We have set up the relevant channels in our crypto section that contain more information.
Congratulations to those members who participated in the two 10 Bagger calls during the past few weeks. Our Orion Money coin call launched out of the blocks from 5c to $2.1, and looks set to go higher still over the coming months as Orion gains transaction as a stablecoin bank. The next 10 bagger was Nexus Protocol coin. Over 40 members made a 10 bagger in just one day when Nexus price jumped from 1c to 16c on its first day. Congratulations guys!
There is plenty happening in our crypto community and some very exciting opportunities including more expected 10 baggers are coming over the next two months. Stay tuned to our crypto channels.
We are now nearing 1,040 members on Discord. Please remember, at the next member growth tier the price to join is going up to US$300. And this figure shouldn’t take more than a month to reach. So if you decide to join our club, or have friends who are interested, please hurry. It hasn’t taken most members long to win back this small join fee money - and make further huge multiple bagger returns on this small investment. (For those in doubt, please read club member’s Testimonials)
We intend to launch our email service this month as we have many followers and potential members who either can’t be bothered, or are not tech-savvy enough to join Discord. The introductory price will be US$100 per year. Email subscribers will receive a monthly report, and occasional news or updates during the month. However, sensitive breaking calls for new 10 baggers will only be sent to them 24 hours after our Discord members have been informed.
We soon anticipate to start a “Super Stocks” service picking stocks or investments that we believe have limited downside and that can probably10 bag but over a longer time frame. These will be stocks more suitable as longer term growth holds for your super/pension fund.
Lastly a big word of thanks to those members who are increasingly helping the committee out with various tasks - including, but not limited to, channel moderation and getting this Wrap together, these include Phred, Mianbao, Costa7, Ed Thomas and Valsan. This is how we envisaged this club to work.
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.