Our 2020 Picks: How did we get on in September?

Any returning investor confidence took a hit in September as countries around the world began to report increased numbers of Covid-19 cases and the threat of a second wave became a reality.

We’ve seen lockdown measures increased as the easing of restrictions over the summer holidays has given way to the stark reality that there is more economic stress to endure. Tech stocks were hit hardest. Following months of positive gains, investors started to flee the sector, fearing stocks were overbought.

The sector has since broadly rallied but the financial markets are still at the mercy of Covid-19 headlines – and there’s  plenty of volatility still to come this winter.

The Armchair Trader’s September picks

Canadian copper explorer Kodiak Copper (TSX-V:KDK) has strengthened its shareholder register by adding Teck, Canada’s largest diversified resource company, with a 9.9% interest. Back in April we said we liked this junior miner because of the fact it was looking into further drilling at a prime copper site which had only been lightly explored by bigger names like Rio Tinto and Newmont. The stock is flying, up from 0.24CAD in April, it is now trading at 3.17CAD.

Another Canadian stock that we have picked out in September is Taat Lifestyle and Wellness [CSE:TAAT / FRA: 2TP2]. Taat has set out to develop an alternative cigarette to help smokers give up their addiction through their hemp-based Beyond Tobacco product. It’s a really interesting proposition with an impressive management team and a stock we will be following closely in the coming months.

7digital LON:7DIG was one of the stock market darlings of August. The business capitalised on its enhanced share price to raise a further £6m through a discounted equity share placing in September in order to support commercial growth opportunities within the home fitness, artist monetisation and social media markets.  This looks to us like a highly speculative play, but there is renewed opportunity here to get into it at a discounted level following the recent sell off. 7digital seems extremely well-placed to benefit from some big changes in the way music and video is managed and distributed in the new economy.

Last month, our Nordic team took a closer look at a silver mining operation Sotkamo Silver [HEL: SOSI1] in Finland which has been in full production since March 2019, producing mostly silver and little bit of gold. With Central Banks supporting the global economic crisis by increasing the amount of money available and devaluing currencies, this has set up potential bull propositions in both silver and gold markets. Our Nordic team feel that Sotkamo Mining is well positioned to benefit.

Here’s how our picks are performing

*Prices as of close of play on 30th September 2020

Removed from The Armchair Trader’s current watchlist for next month: AstraZeneca sold September 1 at 8197 Reason: fall from July 20th peak of 9320 >-10%. Cineworld sold September 9th at 54.4 Reason: Bought 2nd Sept at 60.64 dropped  >-10%. Netflix sold  Sept 9th at 500 Reason share price fell from 1st September peak of 556.55 >-10%. Mineral Commodities sold 17th Sept at 24.95  Reason: shares fell more than -10%. Lloyds Banking Group  (Short) trade closed September 28th at 26.60 Reason: up >10% from low 23.98 reached on 23 September.

• Kodiak Copper adds large claim package to MPD drill zone
• Nano One outlines streamlined strategy for near-term battery tech commercialisation
• Nano One boosts treasury with CAD 5mn land sale in Quebec

Data sourced from SharePad. The UK’s no.1 investment data & analysis software for Private Investors as voted for by FT/Investors Chronicle readers.  Discover the advantage at www.sharescope.co.uk/sharepad.

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