Shifting Shares (16 April 2019) – Going Platinum #FDEV #SLP

Shifting Shares (16 April 2019) – Going Platinum #FDEV #SLP

News roundup

Last week, Indivior (INDV) announced that it was to be the subject of a Grand Jury Indictment, which, whilst a long and drawn out process, would mean insolvency if the company was found guilty.

Despite that, it didn’t stop all sorts of rampers popping out of the woodwork claiming it was “undervalued” and that the sell-off was “overdone”. I think an 80% drop reflecting the very real risk that the company goes bust is a fair reaction!

In any case, it proved a nice scalp trade – I use the 50 EMA on the 1 minute candle, and whilst I got stopped out once, I ran the stock from 23p to 36p the second time, which is a nice 56% gain. I never go too big in these plays, as the volatility is crazy. From trough to peak there was almost a 100% move in the intraday, so plenty of meat on offer for traders.

Prairie Mining (PDZ) was also suspended on the ASX pending an announcement a few minutes before the UK open – I highlighted the opportunity on my Twitter here and was accused of shorting for pointing out the risks! It always pays to be alert as the market is not efficient.

Bidstack (BIDS) has done fantastically well, and whilst I’ve been in and out, I would’ve done much better had I just held on rather than continuously traded it. Nevertheless, it’s a fantastic result for shareholders, and no doubt many of them are now sitting on hefty profits. It’s always wise to bank in my opinion as nobody knows what can happen, but if the company can keep progressing and building a first mover advantage, this could be a serious technology stock in the future.

If I was the CEO, I’d be getting cash in the business now. Even a placing at 15p would be 150% up from the last placing price, which would be a fantastic result and secure the company’s future. This is something most companies struggle with: they leave it too late or place when the stock is weak, and value is destroyed as a result.

MX Oil (MXO) announced yesterday that one of the members of the ruling family of Dubai had taken 29.86% of the stock. Quite why the Private Office of Shaikh Ahmed Bin Dalmook Al Maktoum would want anything to do with this piece of trash is beyond me. I know it says that in the RNS, but I do not believe the RNS. I am not saying that the RNS is a lie – I just happen to not believe it. RNS’s are not always what they seem – I recall several stocks being ramped in the past as a fund, only for the ‘fund’ to actually be an office for retail investors or an actual retail investor.

UP Global Sourcing Holdings

This had a series of profit warnings not long after it floated. It’s funny how these things happen, isn’t it?

(All charts in this article taken from SharePad)

Not exactly ideal for those who took the IPO. Over the last twelve months the stock has begun to stage a comeback. Whether that’s sustainable or not, I don’t know, but let’s look closer at recent price action.

Volumes are thin, but the price ran up from 40p to 67p, and the dips have been continuously bought. I went long at 67p as I had an alert set up, and am currently waiting for the next move.

Frontier Developments (FDEV)

I managed to buy some Frontier as it tested the 200 EMA but since then the algos are all over it, jumping above me on the bid.

If the stock broke down I’d be quick to kill the trade, but FDEV has consolidated nicely and it is fundamentally strong. I’m hoping for a break of 1100p and a continued run.

If we look at the last financial results, growth has been staggering:

These are from the interims, and if we assume zero growth then EPS of 80.4p would put the company on around 12x earnings. This would appear cheap for the increases in revenues, margins, and profit.

I don’t know if FDEV is H1 or H2 weighted, and PE is just a general metric which is overused, so don’t place too much emphasis on this. The chart is what matters.

Sylvania Platinum (SLP)

I remember owning SLP in the 7p price range, now it’s breaking out from 30p! That’s a lovely stage 2 uptrend there, and there could be more to come.

Let’s look closer:

Average volumes have started ramping up, and the stock is giving little back, getting bought continuously. It helps that platinum is rising, too!

Gulf Keystone

GKP had some brilliant results recently, and the stock sold off. However, Blackrock has picked up a 5% slug, and the stock is well supported around 250p. I’ve taken some just below.

We can see the long tails of the stock showing the stock consistently bought up on any dips. This is a sign of strength – hopefully it can push back up towards 300p.


At the time of publication, the author has financial interests in shares discussed in this article.



Wordpress (6)
  • comment-avatar

    Michael – think you mean £11 for FDEV

  • comment-avatar

    Indeed I did – always popped an order for 11.3p this morning, though it wouldn’t have mattered as it wouldn’t have been filled regardless!

  • comment-avatar

    Remarkable how UPGS managed 39% revenue growth in the year when they listed and -20.4% in the year after.

    As always, the challenge is trying to figure out if this company is worth researching further.

    • comment-avatar

      Agree Jaizan – it’s almost as if they tried to dress the piggy before listing. That may be cynical of me but look at Sports Direct- they did exactly that.

      For some reason that wasn’t given, in the year before they floated inventory values were inexplicably changed giving a false impression of the company. This is why it’s so important to do research if anyone is seriously considering taking an investment in a new IPO.

      There’s a reason why Warren Buffett never takes them; most of them flop.

  • Your Cart