Shifting Shares (17 June 2019) – Swinging the bat #ALT #KAZ #LVCG

Shifting Shares (17 June 2019) – Swinging the bat #ALT #KAZ #LVCG

The markets are still not very frothy and so cash remains by far my largest position.

Alpha FX (AFX)

AFX, not to be confused with ALFA, which is Alpha Financial Software Holdings, has done very well since its IPO 14 months ago.

Here we go – it is well up over 200% since it came to the market. I’m keen here at the 850p level. There are the charts people avoid as they tend to believe they’ve missed the boat, but having stared at plenty of charts these are the stocks that just keep going. Look at PPHE from 2008 – a boring hotel group which has multibagged since the lows massively. How many there said they’d missed the boat?

However, thinking we might miss the boat if we don’t stay on it is FOMO, or Fear Of Missing Out. So as always, risk should be set up in place before we enter.

The 150 and 200 EMAs here seem to be key levels, and if the price breaks down through those it would suggest that the trend has changed.

Altitude (ALT)

I do hold a tentative long here in the stock because I am currently researching it and trying to work out what the catch is.

The stock likes that black line, the 50 EMA, and it is putting in a series of higher lows. I’ve noticed that there is a regular 10,000 share buyer on the order book when the stock goes to auction around 103p. I do wonder if they’ll up their price should it begin to move north again.

The time to add and get longer for me would be a break of 118p.

Andrew Sykes (ASY)

On a purely technical view, 700p is a level here I’d like to see broken. Those would be all time highs. The stock currently has a market cap of around £280m – it’s relatively small and so could offer a nice move.

Interesting also to notice the volume ticking up.

APC Technology (APC)

I am running a small long here which may become a bigger long. It has broken out of multi-year highs and offered a chance to add near the danger zone.

The danger zone is the place at where we would admit we were wrong and close the trade – often during a retest of the breakout.

That hammer when the price dipped below the level was the ideal time to double up on a small position.

Instead, I’ll add into strength when/if we see the price move through 10.8p.

Ariana Resources (AAU)

Ariana Resources has been consolidating since February and closed up on good volume on Friday. Perhaps there’s a trade here.

I’m sure it has something to do with gold in Turkey, which are two red flags in itself, but if this stock is going to print us some money then we shouldn’t be so dismissive. I’ll have a quick scan to make sure there’s no immediate risk of a placing coming, as I doubt such a company could be profitable.

Augean (AUG)

Augean is a very boring stock, and often featured in this column, but there’s nothing boring about the price action.

It’s up nearly 5x, or 400%, in under 14 months. These are the stealth baggers – nobody talks about them, nobody notices, but they quietly go on and do their business of bagging in the background. Fortunately, it popped up on my filters and has been on my radar every since, and I fancy going in for another round at 128p.

D4T4 Solutions (D4T4)

Will we see a run back to the highs at 280p here? I do think this has the potential to be a multibagger over the long term and so I’m keeping close tabs on D4T4. I think it’s an exciting stock that again, very few people are talking about. Those are often the best ones.

KAZ Minerals (KAZ)

I’m not a fan of this chart at all.

There’s a lot of supply and trapped buyers much higher. We have all the stock and stale bulls to chew through all the way up to that recent high of 750p – another 90p to go yet!

Also, the fact that the key level is there so close. So you could buy the breakout out of the recent price action but the 50 EMA is right there in front of us to provide resistance, as well as that key level.

I like breakouts to have little supply coming into the stock and I like my stocks to have a clear runway to have a proper swing of the bat. This chart has everything I don’t want!

Live Company Group (LVCG)

Live Company Group announced its results, and whilst there was a lot to like, I guess the hot money wanted more and so they exited. I was perhaps asleep at the wheel here, as I could’ve guessed punters would only be holding if it was making mega millions today, such is the mentality of the average AIM punter. It was an easy short that I missed! (I do still hold my placing stock for the warrants).

Whilst the revenue growth was exciting, cash appears to be becoming stretched. My guess is they’ll need a placing unless the Chairman is lending the company cash. He should be, given that he’s seen it prudent to raise his salary from £191,000 to £503,000 plus an extra £25,000 for “Chairman duties”. What a joke! He does control 39% of the stock, but my guess is that he’s just greedy. I’ve heard that many shareholders weren’t happy and sent him an email about it, and I’m not surprised. It’s a slap in the face to those who held Parallel Media through the years where David decided to do absolutely nothing, and now he has one good year where he actually got off his backside he thinks he can nearly triple his salary. Unbelievable!

Unfortunately, CEO remuneration is a common sore point across AIM and this is nothing out of the ordinary. As I was explaining yesterday, there are companies that have been on AIM 10+ years, achieved literally nothing, yet the directors are still on six figure salaries. They start off as a gold miner in Africa, fail, then raise cash and become a lithium miner in Mexico, and fail there too! But somehow the directors always seem to do OK out of it.

 

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

 

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    AAU is indeed a gold miner / recent producer in Turkey . Throwing off alot of cash but most of it is going to repay mine build loans, as they are to be paid back first . When that is done it will have plenty free cash flow, by 2021 if memory serves me and its going to be home free . Defo worth scrutiny for the patient capital .

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