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/Instrument | Start price | Current price* | Percentage change |
| Raytheon Technologies | 73.3 | 88.71 | +30.0% |
| Sosander | 15.8 | 23.5 | +49.2% |
| Lloyds Bank | 40.4 | 49.89 | +23.4% |
| Glencore | 272 | 321.45 | +18.9% |
| S4 Capital | 5.8 | 5.56 | -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/Instrument | Start price | Current price* | Percentage change |
| Remedy Entertainment | 14 | 46.9 | +240% |
| Harvia | 8.86 | 48.3 | +445% |
| Yellow Cake | 211.50 | 266.5 | +26.0% |
| ITM Power | 260 | 393.4 | +51.3% |
| MTI Wireless | 47.0 | 63.5 | +35.1% |
| QT Group | 86.40 | 108 | +25.0% |
| Nordnet | 152.20 | 154.4 | +1.5% |
| The Panoply | 268 | 292.5 | +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 Cannabis | 0.83 | 0.58 | -30.1% |
| Pineapple Power | 3.25 | 6.75 | +108% |
| Nano One | 1.13 | 4.48 | +296% |
| Taat Lifestyle & Wellness | 1.26 | 2.72 | +115% |
| Kodiak Copper | 0.24 | 1.86 | +675% |
| Brigadier Gold | 0.28 | 0.12 | -57.1% |
| Euro Manganese | 0.44 | 0.49 | +11.4% |
| Thunderbird Entertainment | 1.05 | 4.55 | +333% |
| Cypherpunk | 0.21 | 0.17 | -19.1% |
| HempFusion | 1.65 | 0.69 | -58.2% |
| ProStar | 0.89 | 0.69 | -22.5% |
| Apollon Formularies | 5 | 3.75 | -25.0% |
| Tombill Mines | 0.23 | 0.18 | -21.7% |
| Wedgemount Resources | 0.50 | 0.60 | +20.0% |
| Minnova Corp | 0.35 | 0.27 | -22.9% |
*Prices as of close of play on 31st May 2021
