By Darren Atwater | Saturday 2 January 2021
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Between December 24 and January 3, the entire team here at ShareProphets is serving up our tips of the year (22 in total). No 19 is a buy from our token crackpot socialist, tree hugging eco-loon living in the socialist paradise of Canada, Mr Darren Atwater. Before preparing his organically produced Eid stocks for Ottawa’s weekly socially distanced mask wearing Pride demonstration, the great man opines…
Tom thinks he is been funny by suggesting that my tip of the year would be some sort of Toronto-listed cannabis blockchain play. How did he know that I would mention DMG Blockchain Solutions Inc.? (TSXV:DMGI, FSX: 6AX)
Founded in 2016 in an unincorporated hamlet in a sparsely populated area of British Columbia, DMG has two main business lines: enterprise software for Bitcoin mining, which involves buying stacks of low cost generic desktop computers and setting them on solving complex algorithms. Do enough of that and you’ll eventually create a long serial number that is called a Bitcoin. Those long serial numbers are today worth, holy crap, £22,911 each.
Their other thing is a supply chain management system for cannabis wholesalers and retailers. While cannabis is legal in Canada and businesses have full access to banking and accounting services, cannabis is still illegal at the Federal level in the United States, shutting the US cannabis industry out of US financial and accounting services.
Anyhow, the share price has hovered between CDN $0.08 and CDN $0.12 for the past year but has shot up to CDN $0.73 this past December, and currently sits at CDN $0.60 so that’s good right? The only thing that could improve this combination of blockchain and cannabis would be renewable energy. Alas, the perfect company has yet to reveal itself.
Moving on, Tom did say that the tip had to be London listed and thus I offer you a second pearl of wisdom. I had great success (in a virtual sense) with my recommendation for Versarian (VRS) at the Dragon’s Den portion of the 2017 UK Investor Show. Those who bought that weekend at 21p and sold at the next year at 185p would have profited from a great story, if not a great company. I recommended Versarien because I had read an article in the New Yorker about the bright future but difficulty of obtaining graphene, of which Versarian purports to be in the business.
Recently, I read about the possibility of computer and phone company Apple getting into the electric car business, and its development of a next generation battery. Electric car batteries have several pressure points: weight, length of charge, and speed of charge. If Apple does it, everyone else will follow.
What is the graphene of batteries then? Lithium.
On the AIM market, I like Banacora Lithium (BCN). At 63p, it’s getting close to it’s 52 week high. It has been extracting battery-grade lithium from its Sonora Mine in Mexico. Wait, did I say extracting? I meant, planning to extract. Does it matter? It’s Lithium! It’s buzzword correct.
But the story is good, the hype is here, the price is right. Just don’t bet the farm.
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