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Top-10

Notes from Underground - Most read articles for the week ending 31 July 2020

The most read non-Tom article this week is Why Tiziana Life Sciences is such a compelling slam dunk short by Evik Banksta is at a sensational number one or number five including Bearcasts and Tom’s new shareshow.

Gold
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Gold – the view from the log cabin in Montana is mighty fine... but be careful out there!

This is a strange correction in gold, as the gold price has continued higher and closed last night at a monthly, weekly and all-time record high! Gold stocks are a shade off recent highs, but only just. Where I sit relaxing on the veranda of my log-cabin with my baked beans warming over the fire, it seems that on the one hand the gold market wants a correction which is surely overdue, but the economic data just keeps on getting worse and worse, forcing another surge…

Bearcast
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Tom Winnifrith Bearcast: The Piss Poor Daily Telegraph predicts a roaring twenties...this is why it's totally wrong

I start with how Boris is wrecking the UK economy. I truly despair. Then I discuss the daft comparison with the years that followed Spanish flu. I then move onto the growing banking crisis. Finally, I discuss the idea that industries will change 100% to avoid human contact. I explain why this is not the case with reference to an industry I know well, investor shows. The maths does not stack up and most humans, though not me natch, are social creatures. There is a lot of hot money betting on the world changing completely. It will not.

TILS
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Why Tiziana Life Sciences is such a compelling slam dunk short

Tiziana Life Sciences (TILS) was last week’s AIM ramp, briefly touching 300p on Friday (a £506 million market cap) before closing for the weekend at 268p. It’s more than 10-bagged from its 24p low at the end of February and, as you might have guessed, the reason is because it’s a coronavirus ramp…

Gold

Video: US Dollar Crisis is Not the Only Factor Pushing Gold Higher

Trader David Kranzler, of Investment Research Dynamics, argues that the dollar index doesn’t explain the recent move up in gold and particularly silver. While the dollar has room to move quite a bit lower, the world still has a solid need for dollars. The excessive money printing could put a lot of pressure on the dollar, and the recent move in gold could be due to investors anticipating such a drop.

HCM

Table of shorted AIM shares - week to 31/07/2020

From the FCA’s spreadsheet of short positions required to be disclosed to it, the following shows the shorted AIM shares with positions from 2019 and thus far in 2020 (by net short position %, those in bold not on the list at the start of 2020) – and if this position has increased (red), reduced (green) or remained unchanged (black) since last week…

JLP
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Jubilee Metals – a buy?...

Jubilee Metals (JLP), an AIM and Altx traded metals processing company, has recently followed a “pleased to announce” six month operations update with a compelling presentation at MineProphets and at a current 4.6p offer price…

Malcolm-On-Motorcycle

'Why Are Many Shares Holding Up In the Virus Carnage?' and How to Exploit a Strange Situation

Hello Share Trashers. A good friend asked the other day why shares are holding up so well, despite the inevitable recession to come. Well, of course, the answer is that many aren’t. My Shell (RDSA) shares are down by a half and my Royal Bank of Scotland (RBS) holding is dire. But overall the general market is bearing up because the virus has benefitted the techies. This is rather ironic…

Bearcast
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Tom Winnifrith Bearcast: Is Cineworld now a slam dunk zero thanks to blundering Boris?

My wife’s young cousin – L – and her young man will arrive shortly to our house to cat sit and the Mrs, Joshua, and I can head to the Greek Hovel. I wonder what Covid restrictions there are in Greece and how they will be applied? Here in the UK, BoJo has new rules and I ponder if they will mean the death of Cineworld (CINE).  On the subject of death, I discuss Versarien (VRS) and also its moronic shareholders and why ADVFN (AFN) scores an own goal in not banning them. I look at Coro Energy (DOG) and also International Consolidated Airlines (IAG), British Airways as was.

EUZ
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Europa Metals suddenly seems popular - which leaves me wondering when the next placing will be

The AIM market is full of companies which have never managed to achieve anything of note despite operating for years, and often it isn’t that hard to spot when they are going to raise more funds imminently.

BATS
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British American Tobacco highlights there is resilience (and probably value) in vice

As I noted in early June, ‘I know there has been a little bit of controversy between writers on this website about certain sectors, but allow me to double down on the tobacco space (as an investor naturally, I’ve never touched the horrible stuff personally)’. What followed was a value love-up for British American Tobacco (BATS), which complemented my positive positioning in Imperial Brands (IMB). In a world however of technology behemoth love, tobacco is not so much in favour…

VRS
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Versarien cheerleader explains why it is okay to murder Tom Winnifrith for journalism

It seems that some of Neill Ricketts’ biggest fans do not like my investigative probing into Versarien (VRS). This time they are not going after my heavily pregnant wife (as they have in the past) but after me.

AEXG
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AEX Gold lists on AIM because, of course, it will be different this time... Not!!!!!

Up in the high woods of Montana, just below the snow line, today’s listing of AEX Gold (AEXG) will surely cause stirrings of unrest for our in house gold loon Nigel Somerville. Or maybe a grizzly has eaten the wires to Nigel’s satellite dish and he is blissfully unaware of today’s events.

CORA
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Cora Gold – pleased to announce an “Additional New Discovery”, BUT...

Only earlier this week Cora Gold (CORA) announced a new discovery (at the Bokoro II permit) at its Sanankoro gold project in Mali. Now an “Additional New Discovery at Sanankoro Gold Project”

SYME
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Supply@ME – Remembering the fraud Quindell and Equities First: Is this a carbon copy?

It was back in 2014 that ShareProphets nailed Rob Terry and his sidekicks after they did a stock loan with Equities First which turned out to be a discounted outright sale with an optional buyback clause, and spent a tiny proportion of the proceeds on buying a handful of extra Quindell shares. Of course, the transaction was presented to the market as them buying more stock when in fact they were selling vast quantities of shares – the killer punch being that those Equities First deals were non-recourse.

KEFI
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KEFI Minerals – “Q2 2020 Operational Update”, remains a buy...

KEFI Minerals (KEFI“is pleased to provide its latest quarterly operational update”. This is with the update including on its current flagship Tulu Kapi gold project in Ethiopia, “we have received significant interest to potentially provide the outstanding asset level equity and other forms of duly subordinated investment. Our discussions are progressing with Ethiopian investors and international specialist mining financiers, with the aim of securing the required project equity ahead of closing the full financing package in October 2020” and then also “we are also encouraged by the recent approval by the Saudi Cabinet of a new mining investment law, which is a very positive development for our two other advanced projects - Hawiah (copper-gold) and Jibal Qutman (gold) projects in Saudi Arabia”

YU

Yu Group trading statement: never mind the cash……feel the placing coming this way and SELL.

AIM-listed alternative energy supplier Yu Group (YU.) yesterday offered up a half-year trading statement ahead of interims on Wednesday 30 September (deadline day to avoid suspension – a bit of a Red Flag). Having always advertised plenty of cash but turning out to be running short in the net current assets department, is it any different this time? I fear not…..

RDSA

This Oily Ship Could Have Sunk as Far as It's Going to and Maybe we should Climb Back on Board

Hello, Share Smashers. Though some of my portfolio has held up remarkably well during the pestilence, my biggest holding has been among the worst affected Footsie giants. That’s not surprising as it’s Royal Dutch Shell (RDSA & RDSB). This giant could only forge ahead if the oil price was ok and sadly it has proved anything but. The price of Brent Crude is down a massive 35%. Shell’s share price has tumbled by more than a half over the year…

Bearcast
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Tom Winnifrith Bearcast: Versarien, Lanstead, Innovate UK - chapter & verse on what is being hidden and what Nomad SP Angel MUST do next

There are breaches of TR1 rules and a lack of transparency on Versarien’s (VRS) cash position. We need clarity, and that clarity will demonstrate why the £5 million UK taxpayer loan is 100% illegal. I move from one dog to two others: Iconic (ICON) and Supply@ME Capital (SYME) before offering some price targets on Ariana (AAU) where I am a very happy shareholder.

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