Speculative Stock Portfolio

[peter2]

Good disciplined exit on MCP. I'm sure there are better opportunities for your money.

edit: I had only just reviewed your portfolio minutes ago and was wondering if you were going to exit MCP. Why was I in your portfolio? Well I saw that AMI spiked higher today and looked to see your buy price.

 

[aus_trader]

Good disciplined exit on MCP. I'm sure there are better opportunities for your money.

edit: I had only just reviewed your portfolio minutes ago and was wondering if you were going to exit MCP. Why was I in your portfolio? Well I saw that AMI spiked higher today and looked to see your buy price.

I thought to give MCP just a little room in case it found support from the high a year ago around 1st of September 2017. Ran out of patience today as prices kept falling.

Slim pickings for the time being as I have also noticed more stocks seem to be moving down than up. So even when I come across stocks like BRN that I mentioned earlier I was hesitant to buy as it may immediately move down with the rest of them forcing my hand to sell.

Pete, it's a relief to see any stock pushing higher, go AMI go.

 

[aus_trader]

I'm having a bit of deja vu while doing a bit of research on a mining spec. Taking me right back to the time when the first Uranium boom took place in the early 2000's. Does anyone remember Paladin Energy Ltd (PDN) ? It went from just a few cents to around 8 bucks during the boom and was heralded as one of the best Uranium plays that went from a hopeful to a miner. Most people I've spoken to or exchanged messages with agree that although luck may have played a part, the success of Paladin was mostly due to the exceptional management led by John Borshoff. It's also notable that Sprott asset management took a strategic stake in Paladin while it was still trading for pennies and they did really well as the company transformed itself into a miner.

That was more than a decade ago and Uranium boom ended and prices have come down so much since then that it's not profitable to mine the stuff for most miners. Worldwide, miners have cut back production as it's not profitable to sell at current spot prices after all the mining costs are factored in, even Paladin has put it's Langer Heinrich mine on hold for the time being. This cut back is expected to reduce supply and predictions are for Uranium prices to start heading higher again.

So while waiting for Uranium prices to pick up, I've been looking at a few Uranium plays on the ASX. There is a bunch of plays with various projects but one caught my eye and that's when I had the deja vu (French I think) moment. I was going through the company material on Deep Yellow Limited (DYL) and this is what I came across:

As can be seen from above, does CEO and largest shareholder ring a bell? Well, I am happy to take a small stake and see what happens. Although the timing of the Uranium price cannot be predicted accurately, if there is a recovery I think DYL is a prime candidate to lead the charge amongst Uranium speculative plays.

Open Portfolio:

 

[aus_trader]

Another China speculative stock given a go in the portfolio, Food Revolution Group Ltd (FOD). It sells a variety of boutique beverages, drinks and oils etc, see below:


Another development is the Chinese distribution deal and strategic investment, as below:



Looks like a small cap stock (valued at only 56m at the moment) that has a good growth story. I also think it might be getting discovered by institutions and fund managers just recently (12 September) from announcements made to the ASX:



Also just aside from that, the currently held stock Maca Ltd (MLD) has sent me a dividend cheque. Details are updated in the table below:

Open Portfolio:

 

[sptrawler]

I've bought into Hazer(HZR) speculative but a new process, which produces battery quality graphite and Hydrogen.
Another one I have owned previously, and am thinking of buying again, is Imdex. They were into basic drilling and now appear to be moving into the more technical side, and evolving technologies. Very speculative, but if drilling efficiencies are improved, exploration costs are lowered.

 

[aus_trader]

I've bought into Hazer(HZR) speculative but a new process, which produces battery quality graphite and Hydrogen.
Another one I have owned previously, and am thinking of buying again, is Imdex. They were into basic drilling and now appear to be moving into the more technical side, and evolving technologies. Very speculative, but if drilling efficiencies are improved, exploration costs are lowered.

I quite liked the combined Graphite/Hydrogen production capability of Hazer Group Ltd (HZR). If pilot plant is successful then commercialisation could be a reality and having Mineral Resources Limited (MIN) as a JV partner and one of the main shareholders provides further backing for HZR progressing well.

 

[aus_trader]

New Uranium discovery for Deep Yellow Limited (DYL), as described below:


This should add a few additional ounces to it's resource inventory.

 

[aus_trader]

Couple of stocks added to the portfolio today.

Looked further into Hazer Group Ltd (HZR) and it looks good as a speculative play. It is in the process of commercialising Hazer process which is a low emission hydrogen and graphite production process. These highly technical processes can yield good gains if invested at the right time as it de-risks the new technology when moving from conceptual design stage to proven plant stage. Currently at the latter end of this path as HZR is building a pilot plant and if successful has plans on going bigger to a commercial plant, see progress flow since listing:



JV with Mineral Resources Limited (MIN) also provides further confidence in Hazer process and MIN has a large shareholding in HZR.

Latest independent testing of Hazer process is also encouraging:



At $32m current market cap, I think HZR can have a lot of upside if this goes commercial so I bought some shares. Another play that did well in this portfolio with similar proprietary technology process for metal extraction was Clean TeQ Holdings Limited (CLQ).

2nd stock is another China play, Aumake International Ltd (AU8). As the name suggests this actually makes Au products and sells online as well as via retail to customers. To summarise it's experiencing great growth at the moment, see below:



Open Portfolio:

 

[aus_trader]

Two stocks sold from this portfolio. Maca Ltd (MLD) and recently bought Hazer Group Ltd (HZR) both removed from portfolio as market took a dive today.

Closed Positions:

 

[aus_trader]

With the surge in gold price, added Silver Lake Resources Ltd (SLR) to the portfolio. SLR has a great gold mining operation and it shows without looking too deep into it's mining specs as it has nearly half of it's Market Cap in cash and bullion:



Compared to some of it's peers, it also has plenty of mine life left due to the huge gold resource it has.

Open Portfolio:

 

[Triple B]

Gday AUS.
Can I ask which broker you use for your speckies trading . cost and execution efficiency would be nice to know to .Im cosiderin a non leveraged cfd acc with fp markets for the small/micro caps not offered on my current broker account (TD365)
Thanks

 

[aus_trader]

Gday AUS.
Can I ask which broker you use for your speckies trading . cost and execution efficiency would be nice to know to .Im cosiderin a non leveraged cfd acc with fp markets for the small/micro caps not offered on my current broker account (TD365)
Thanks

Hey TripleB, I am using a standard stock broking account as a lot of the CFD providers do not offer the smaller speculative companies in their platform. So after some searching around I found $10 per trade for trades under $1000 with CommSec. For larger trades they charge more but since I only buy parcels of less than $1000 for this speculative portfolio, I find this broker satisfactory.

 

[aus_trader]

Looking to see if this market dip is presenting any buying opportunities for speculative plays. But I don't want to buy too many stocks until there is clear direction that market is heading back higher.

There is quite a few speculative stocks on the ASX related to the Cannabis/Hemp space. Companies range from growing the weed, creating pharmaceutical/therapeutic products with it, innovating new technologies with cultivation and growth of crops that's been applied to increasing weed growth and targeting veterinary/animal health products.

One company that is making some good progress is Elixinol Global Ltd (EXL). I think this company is at a more advanced stage than some of it's peers since there is a few commercial products already developed and being sold. Also revenues are increasing from sales:


The market cap is still around 80m with 40m in cash from the recent capital raising. Medicinal Cannabis can add another stream of income down the track and re-rate the company higher. So this was added to the portfolio this morning.

Open Portfolio:


Just aside, another company in the same space, MGC Pharmaceuticals Ltd (MXC) went bananas today and shot up before it was halted from trading and ASX has requested an explanation.

 

[aus_trader]

Since doing a lot of research into the Cannabis/Hemp sector, decided to double up exposure in this portfolio by buying another stock. Hydroponics Company Ltd (THC) is targeting it's innovative hydroponic growing technologies to grow and increase yields of Cannabis crop. Company is increasing it's global footprint as well and it is proposed to be renamed to THC global group in the future to reflect this.

THC's businesses are in two areas: in the growing of Cannabis for medicinal use as well as it's traditional selling of hydroponics equipment in retail environment. They are particularly targeting the growing micro and home-grown Cannabis markets in the North America and Canada via the sale of their hydroponics equipment in their Crystal Mountain

Retail outlet.

They have a growing portfolio of open land and greenhouses for growing the weed:


Open Portfolio:
​

 

[aus_trader]

Aumake International Ltd (AU8) has been falling slowly so it is removed from portfolio in case of further falls.

Closed:

 

[Triple B]

Open Portfolio:

Thats what we want to see . 66% green numbers,noice

 

[aus_trader]

Thats what we want to see . 66% green numbers,noice

Cut the losers and keep the winners, Yes.

 

[aus_trader]

Presentation out on Bell Financial Group Ltd (BFG) today and share price is getting a lift. I think the meat of the presentation slowly getting discovered and it's better than when I first covered the story around two months ago. In case no one has noticed, here it is (circled in red):


Once the fund managers and media gets on to the fact that this is probably the highest yielding financial stock on the market without all the mortgage loans needed to generate it, watch out !

It might just be possible a small % of the billions invested in the Aussie major banks may get re-balanced into BFG as super funds, mutual funds, private equity and the rest of the market looks for better returns from their investments. By the way BFG is only just over $300m currently, as can be seen above.

 

[aus_trader]

The smaller end of the market shows little sign of recovery. Two more stocks sold, DYL and EXL.

Closed Positions:

 

[aus_trader]

More selling. Most stocks have fallen off in the marijuana/weed space, so got out of THC as well after selling EXL yesterday. Also sold FOD.

Closed: