Best Buys November Edition
Industrial Minerals (IND.ax)
First called at $0.20, currently at $0.36.
This boring silica sand company looks like it may win the race to control the massive new silica sand market out of Oz. It’s not a risk-free investment as it’s currently awaiting a plant in China to confirm their sand works in their plant. If it does, they will confirm their MOU for a 600k per annum sand order. We think IND could make around A$50m profit of that order – and as it’s only got an A$25m market cap now – it should jump up over $1. This confirmation should come before year end, and would imply much bigger orders to follow.
Errawarra Resources (ERW.ax)
First called at $0.25, stock price now $0.205.
This is a shorter term risk-on play based almost entirely on the gamble that ERW will hit nickel when it drills on its Andover west tenement later in November. If it does, the stock could shoot over $1 and possibly to $2. If it doesn’t, it will fall back to 10-12 cents and sit there as a shell until another deal happens. This deal has 5-10x upside and about 50% downside. And all should be resolved before Cristman, unless further delays creep in, which is always likely.
Element 25 (E25.ax)
Initially called at $0.11, then exited, it has now been recalled at A$1.24.
Waiting for a big high purity manganese off-take JV or deal to be announced – and we expect this stock can push back over its old $2.80 highs. Maybe hard for a ten bagger from here but 3-4 bagger is still very possible in the next few months.
Called at $0.06, LIN rallied to $0.36. It has fallen down and we strongly believe it can bounce up again. This rare earth play is very valuable and can reach $0.50 to $1.00 within two years, currently it is at the price of around 20 cents.
Firebird Metals (FRB.ax)
Initially called at $0.20, it rose to $0.85 before falling back to around the original call. If E25 runs a much smaller market cap, FRB can run – possibly over $1 or more. FRB has almost as big manganese deposits, but is behind it in terms of development, financing and has a bigger capex burden to work out.
All Our Uranium Calls
In this order: Aura Energy (AEE.ax) and its option (AEEO.ax); 92 Energy (92E.ax); Okapi Resources (OKR.ax); Elevate Uranium (EL8.ax) and Deep Yellow (DYL.ax.)
The uranium bull story is taking far longer than we expected, due to the SPUT fund not getting its NYSE listing, but it is playing out as sure as day will follow night - and, barring a black swan event like an attack on a plant in the Ukraine, etc. The uranium price is going higher and the uranium stocks are valued much higher these days. So far this year, the uranium stocks have not done much of any note other than be boring but they have held their own in USD terms which is better than most commodities (and stocks!) To us, holding uranium stocks now is a bit like having money in the bank with a lottery ticket hidden amongst them - they will stay safe until one day there will be huge returns.
This rather dull nasal spray story is developing well with good management and is also a longer term hold — rather like having money in the bank — and one that can produce a ten bagger over time, in our opinion.
It is a very undervalued stock and it may get a tad cheaper in case there will be a cash raise but we still see huge upside in this stock in a long term run and call it our “bottom drawer retirement play”.
Our Unlisted 10 Bagger Calls
Despite carrying a bit more risk as not yet listed — we see much more upside potential in these two unlisted investments we’ve just undertaken than in most of all the listed stocks above.
- L1X: We will be expecting a huge uplift from its US$20m market cap valuation when and after it does its ICO around mid-next year.
Other Stocks To Watch
From our former calls, with good news on Invictus Energy (IVZ.ax) recently, with more chances of hitting gas and oil now this is one of the stocks to watch. Also, we would highly recommend watching Danakali (DNK.ax) in case a counter bid is coming in.
Former multibagger QX Resources (QXR.AX) is also one to watch as it continues to drill out its lithium resources. Another old favorite - Anson Resources (ASN.AX) continues to look extremely undervalued as it falls back from its recent run up to $0.42 towards $0.20. Anything around 20 cents is a buy and potential longer term 10 bagger on this multibag stock. Also keep an eye on Meteoric Resources (MEI.AX) at $0.014 – it has an A$21m market cap but will soon have around A$30m cash to spend on some prospective new project.
Some of the big tech stocks in the US are beginning to look extremely undervalued. And are worth watching with a view to beginning to collect some:
- Roblox has fallen from $133 down to $30 and is still going strong.
- NVIDIA is down from $330 back to $136.
- Amazon from $175 down to $86.
Some of the blue chip crypto related equities stocks:
- Microstrategy (MSTR) - the second biggest Bitcoin holder is back at $170 after hitting $1,000 in 2021, that’s almost the same price as before it was owned by Bitcoin.
- Silvergate Capital (SI) - the big crypto bank was at $220 – now it’s down to $34.
Or look at any of the good blue chip stocks in Hong Kong: all have been decimated recently as the Hang Seng index has fallen by 50% from its high of 31,300 down to a low of 14,400!
Please be aware that past performance is no guarantee of future performance. 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.