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This month we are changing the format of our regular stock picks update, largely to reflect how we manage risk across the portfolio. We took the decision to recategorize shares according to how they fit into our inhouse investment approach. Further details on this are given below.

Wedgemount Resources

We added Wedgemount Resources to the venture stocks list (25 May). This is a newly listed Canadian copper explorer which is embarking on exploration at three potential copper yielding sites in British Columbia this summer. It is looking specifically at under-explored or under-valued stakes in one of Canada’s prime copper belts. There is increasing investor focus on copper exploration plays in Canada at the moment, as the market is already aware of the direction the copper price is taking, and we anticipate a copper squeeze in 2022.

Red Moon Resources

We also added Red Moon Resources to the venture list, which is a company that was already on our radar. Red Moon is a Canadian-listed salt miner that has also been turning salt domes into energy storage facilities. We like the fact that it offers Canada and parts of the US access to cheaper and more environmentally sound sources of salt in the winter. The market also seems to have liked the fact that Red Moon is now working on a portfolio of hydrogen storage assets. It seems to tick a lot of boxes.

Harvia

Harvia, which sits in our buy and hold portfolio, seems to be going from strength to strength. The Finnish sauna maker has been on the acquisition trail and recently announced (2 June) that it was buying hot tub specialist Kirami. Analysts in Finland continue to raise their target price for Harvia, but we remain ahead of them, with a house view that they are consistently under-pricing the growth prospects for this one. We started following Harvia when it was priced at just under €9. At the time of writing this report it was at €48.

Yellow Cake

Readers who have been with us since last summer will recall that we were – and are – still fans of the prospects for uranium, even if only as a bridging source of power between coal and oil fired stations and the next generation clean energy resources. But it seems to us that there is no path to effective zero emissions that does not go through nuclear. Yellow Cake is effectively the uranium ETF (current rules make it very hard to stuff uranium into an ETF), holding uranium against projected price hikes. The stock has been climbing since December, when it could have been had for GBX 200. It is up at 276 at time of writing.

Minnova Corp

We also added Minnova Corp, which is a quiet gold mining venture in Manitoba, on 21 April. The company is a little unusual in that it is following a two-pronged strategy of both prospecting for gold on an existing site and also beginning to restore the mine and the infrastructure that already exists there. Like many gold miners on historic sites, Minnova is bringing new technology into play at its PL North exploration project. Slightly outside the scope of this survey, it announced in early June that it had initial bonanza assays from early drilling activity, provoking a 22% gain in the share price.


Here’s how our picks are performing

Tactical trading portfolio

These are shorter term equity and commodity trades which we can see playing out within one to three months. We will sometimes keep these on longer if the trade is still quite range bound but we are anticipating further upside. These trades have the tightest risk parameters.

Company/InstrumentStart priceCurrent price*Percentage change
Raytheon Technologies73.388.71+30.0%
Sosander15.823.5+49.2%
Lloyds Bank40.449.89+23.4%
Glencore272321.45+18.9%
S4 Capital5.85.56-4.1%

*Prices as of close of play on 31st May 2021

Longer term buy and hold portfolio

These are positions where we see a longer term growth scenario, usually in the small to mid cap space, but sometimes larger companies. We will typically be keeping these stocks on the list for at least six months and often longer. Consequently our risk tolerance is higher for these positions than for the trading list.

Company/InstrumentStart priceCurrent price*Percentage change
Remedy Entertainment1446.9+240%
Harvia8.8648.3+445%
Yellow Cake211.50266.5+26.0%
ITM Power260393.4+51.3%
MTI Wireless47.063.5+35.1%
QT Group86.40108+25.0%
Nordnet152.20154.4+1.5%
The Panoply268292.5+9.1%

*Prices as of close of play on 31st May 2021

Venture portfolio

These are companies which we see as having long term and considerable growth prospects. Due to their size and the nature of the business they are in, we feel that our normal risk management constraints should not be applied to these stocks.

Christina Lake Cannabis0.830.58-30.1%
Pineapple Power3.256.75+108%
Nano One1.134.48+296%
Taat Lifestyle & Wellness1.262.72+115%
Kodiak Copper0.241.86+675%
Brigadier Gold0.280.12-57.1%
Euro Manganese0.440.49+11.4%
Thunderbird Entertainment1.054.55+333%
Cypherpunk0.210.17-19.1%
HempFusion1.650.69-58.2%
ProStar0.890.69-22.5%
Apollon Formularies53.75-25.0%
Tombill Mines0.230.18-21.7%
Wedgemount Resources0.500.60+20.0%
Minnova Corp0.350.27-22.9%

*Prices as of close of play on 31st May 2021

Related

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Please note this article does not constitute investment advice. Investors are encouraged to do their own research beforehand or consult a professional advisor.

Stuart Fieldhouse

Stuart Fieldhouse

Stuart Fieldhouse has spent 25 years in journalism and marketing, including as a wealth management editor for the Financial Times group, covering capital markets and international private banking, and as an investment banking correspondent for Euromoney in Hong Kong. He was the founder editor of The Hedge Fund Journal.

Stuart has worked at CMC Markets, supporting the re-launch of its global financial spread betting and CFD trading platforms. He is also the author of two books on trading, published by Financial Times Pearson. Based in The Armchair Trader’s London office, Stuart continues to advise fund managers, private banks, family offices and other financial institutions.

Stocks in Focus

Here are some of the smaller companies we are following most closely. They all represent significant growth stories in our view. Our in-depth reports go into more detail on why we like them.

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