Call for Entries for Hotlist 2012

It’s been an ugly year and most are truly fed up with the markets and the global woes. There’s no magic wand unfortunately and you have to take the rough with the smooth. After 2 bullish years in 2009 and 2010, small cap commodities performed well off their respective lows.

The big question is – will the small cap commodity sector perform in 2012?

Well, it’s that time of year again when thesharehub invites readers to submit and share their recommendations for the 2012 list.

The format will be the same as previous years with 10 stocks forming the Hotlist. However, for 2012 there will be two different lists. Instead of having 2 x commodity heavy hotlist picks, there will be one Hotlist for commodities and a second B-list which will focus on a mix of sectors. The latter will be more comparable to the newspaper stock picks where sector breadth is always a crowd pleaser.

A full summary of the 2011 Hotlist results will be issued around Jan 2nd 2012 with the new 2012 Hotlist (and B-list) being issued shortly after.

Commodities may have exited 2010 on a high, but it looks fairly certain many will exit 2011 on lows. That might in itself be a good reason to look at bottom picking especially if the broader markets show a new verve in 2012.

Please keep comments related to this thread if possible as it’s easier for everyone to follow. If your comment or post does not show up in the comments section immediately – don’t worry, give it time – it will appear.

50 replies on “Call for Entries for Hotlist 2012”

  1. Hub , many thanks to you and to Gramacho for your inputs this year , what a year 2011 was , roll on 2012 .

    Best regards,

    JaP

  2. CHAR
    CAZA
    BLVN
    LLOY

    In that order…bring on the multi bags of fun for everyone in 2012

  3. JLP, undervalued against assets and potential currently 12.5p worth 59p min..

    BZT, currently 26p if option is exercised special divi of 35p in 12 months, plus value of remaining assets, no brainer..

    MXP, huge potential need I say more great success in 2011 with deeps to follow

    BZM, huge potential for 2012 / 2013

    1. Hi Andy,

      The 2012 Hotlist (commodity focussed) and the 2012 B-list (changing to Mixed sector based) will be published in the next few days and certainly before Jan 3rd.

  4. MXP – Underpinned after 2011 shallows , mouth watering deeps to come.
    RRL – Trinidad underpins, Puntland and Georgia to come. Sale of Texas assets,
    XTR – Luna and Chevron next month. Small market cap.
    All the above are multibaggers.

  5. Big for 2012 which I hold I think will be GKP, FOGL, BHR and HER.

    I’m looking into some potentials at the moment of AFF, ANR, ABH, BZM, EMED, GCM, RENE, SHG and ENK which I think some might offer multiple returns.

  6. i go for VGM, BMR & ORE, hopefully all multibaggers!! merry xmas to hub & all investors!!

  7. Hi Hub,

    I’ve recently been checking out that old chestnut – Empyrean Energy (EME).

    They are on the starting blocks waiting for the gun (IMHO).

    Riding on the coat tails of their oil major partner Marathon, Empyrean is going to be swept along for the ride as Marathon develop the Sugar Loaf condensate and gas field.

    New wells being brought on stream month after month, revenue ramping up dramatically – market cap currently £10m – what’s not to like?

    I’m not in yet – waiting for funds – but I think I will have to have a few of those 5p beauties…..

    AIMHO, DYOR,

    Kalyana

  8. Top of the list would have to be MXP, a possible 10 bagger in 2012.

    Looking at my portfolio I would also like to see another 2011 hotlist favourite, BLVN, again could be a tranformational year for them.

  9. Two for consideration –

    CRND – Massive gold resource. Recent reinstament of mining license. Awaiting approval and implementation of Acid Mine Drainage solution. Ace card is that company pre-ordered the pumps necessary to solve the problem – the South African Government don’t have anyone else to turn to in the timescales required.

    ORM – Nearing final approvals for Tungsten mine in Spain. Tungsten in ever shortening supply thanks to Chinese export restrictions. Vital commodity for numerous manufacturing processes.

  10. Like having a dabble. Just bought into Magnolia Petroleum. Some views on this would be appreciated.
    Thanks

  11. HER HER HER HER!!!

    Funds in place. 3 potential pcds. Great BOD. Nuff said!

  12. AFC energy, makers of low cost alkaline fuel cells are about to embark on commercialisation phase.
    Potential markets are enormous.
    Allegedly numerous potential customers already in discussions.

  13. Frontier Mining (FML), 2 licences with 2 million tonnes of contained copper at Benkala, 1 million tonnes at Baitemir, minimal debt, commissioning the brand new SX/EW plant right now at Benkala for a 2012 spring start, targets 7000 tonnes of copper cathode for 2012, current market cap £55 million. Additional drilling underway at Baitemir to increase resource. Rumors of interest from Rio Tinto
    Share price has dropped in the last 10 months from 8.5p to 2.75p, with all the hard work now done to become a producing mining company, with expansion planned in 2012 to 10,000 tonnes p/a and in 2013 to 20,000 tonnes p/a.

  14. Check out:

    NEW and XTR.

    Both have large prospects in Denmark, NEW have licences in Belize and XTR have billions of tonnes of oil shale assets in Oz – if the moratorium on oil shale is lifted in Queensland, then this one could be worth 100x the 2p it’s valued at today.

  15. Hub,

    For your non-commodity list, Inland Homes (inl.l) is worth a look.

    SP of 15p, Mkt Cap £28mln, Pre Tax Profit y/e June 11 of £3.5mln (up from £1.1mln in 2010). EPS 2.1p, currently p/e of 7.

    Almost no debt – £0.42mln (for a building company!!) – spent 2009/10 repaying expensive RBS debt, now released and seeking new senior banking relationship.

    NAV of 26.5p (potentially 33.5p if Drayton Garden Village incl – see below).

    Just completed transaction at court to allow capitalisation of reserves to “pave the way for distributions to be made in the future” – divis/buybacks?

    Not a typical housebuilder, acquires brownfield sites (ex MoD, NHS etc) and seeks planning permission to enhance value – all based around SE England.

    Land bank of 965 resi plots and 200k sq ft of commercial space (484 and 97k sq ft consented), plus Drayton has 625 resi and 55k sq ft of commercial.

    Main projects are;
    Drayton Garden Village, (permission granted and plots now being sold).
    Poole Twin Sales Bridge area (app submitted for 270 resi and 100k sq ft of commercial)
    Chelmsford St Johns Hospital – exchaned on 50% of site (hope for approx 125 resi plots), first refusal on rest (up ot 300 resi plots).

    Recently exchanged on a further 88 apartment plots to a housebuilder at Drayton for £5.75 mln (comp on 4th Jan) and sale of land with detailed planning consent for 80 bed nursing home at Drayton for £1.8mln (comp on 18 Jan).

    Thinly traded share and has drifted in the last 6 months on no bad news. Only downside is CEO recently sold some of his holding – HOWEVER, I have ascertained for a particular need and on same day 4 other directors bought to confirm to market nothing untoward as far as company is concerned.

    Cheers

    Harry Potter!

  16. Vialogy, Vialogy, Vialo Vialogy, Vialogy, Vialogy,Vialogy, Vialogy, Vialogy, Vialogy, Vialogy, Vialogy, Vialogy.

    Contracts signed early 2012 sets it up for major success

  17. My tip would be Strategic Natural Resources (SNRP)

    A huge untapped coal resource in South Africa
    Possibly the largest undeveloped coal mine in Africa
    Funding announcement due
    They start production in February 2012
    Large offtake signed and others expected
    Export market is India and China, so not euro affected
    20 year coal supply agreement just announced for SA supply
    CPR upgrade in Q1 2012
    Infrastructure upgrades due to take place
    Only 3% of the property mined thus far
    And only capped at circa £14 million
    Broker valuation on funding announcement is circa £1

  18. I have shares in C21. It is an AIM listed company that is making a profit !!

    It has £2million + in the Bank and has a property for sale at £2 million+ and is valued at £11.53 million. Possibility of a dividend next year.

    DYOR

    Roger

  19. Hi Hub,

    It seems virtually all of the 2011’s Hot Lists underperformance was due to the shocking performance of the overall market and the AIM market in particular.

    Therefore whilst I’m interested in a 2012 Hot List I’m very interested in peoples views on why/if 2012 will be any better for AIM than 2011 – as this would seem to dictate whether it’s worth doing a HL at all.

    1. I think that’s the golden question. If the answer was easy, then I think the small cap commodity sector would be in better shape now.

      On a simple basis – the small cap resource sector rallied strongly in the second half of 2010 leaving many stocks near 2 year highs. In 2012, many of these stock will be entering at 2009 or 2010 lows. That’s clearly a better position than this time last year in terms of bargain hunting. But there’s nothing to say that 2012 cannot mirror 2011 or conversely – 2010 again. Much depends on QE3 and the dollar imho.

  20. Hi Hub,

    Have a look at GDP (Goldplat) – one that won’t have been mentioned at all.

    SP 10.75p, Mkt Cap £18mln, 10p placing of 55 mln shares in Dec 2010, money used to purchase mining leases and fund exploration at 2 major new sites in Burkino Faso and Ghana, plus has just succesfully received final govt lease/sign off for gold project in Kenya.

    Another gold explorer?

    What makes this stand out is that it already has in the background profitable gold recovery operations in Ghana and S.Africa separate to the new sites (28k ozs in 2011, up from 21k in 2010) which in the last year made a net profit of £3.4mln (inl £425k exceptional gain), £1.95 mln in previous year. No debt, has net cash of £3mln. There appears to be no need for fund-raising with existing operations funding growth, the placing in Dec 2010 was to fast-track the 3 exploratory/production operations

    This is all before the main aim of becoming a mid-tier producer by looking to raise it’s jorc defined resources to c. 1mln ozs by end of H1 2012 (from the 3 projects above).

    The kenyan project has concentrate stockpiled (whilst they awaited the final lease – received in Nov), the elusion plant is 90% completed and first pour is expected in Jan worth c. $2.4 million, and look to produce 10k ozs this year.

    Add to that the Kenya project has 129k ozs Jorc already and with further exploration they believe they can get this to 500k ozs by Q 2012.

    This may not be a £billion company in the making, but at 10.75p and a mkt cap of £18mln (heavily underwritten by existing profitable operations) and with the Kenyan project coming online to add to production in Q1, plus the 2 other exploratory targets 2012 really could/should be Goldplat’s – could be excellent timing for 2012 hotlist.

    Well worth a look.

    Cheers

    Harry

    P.S. Also take a look at RMM – copper and gold play with operations based in Newfoundland. Has just brought own mill back into operation, has a copper concentrator and gold hydrometallurgical facility so can switch production of either gold rich or copper rich ore from it’s various mining zones depending on metal prices. Placings completed last year, now has a debt facility in place, so appears no need for fund-raising. At 26p, a mkt cap of c£33mln looks good for 2012 either if copper price rebounds or if money-printing continues and gold moves up.

  21. Considering how close FML are to produciton and with the funding to get there 2012 should be FML’s year as the current disconnect between the sp and near term earnings can’t be ignored indefinately. looking good also
    are:
    CHAR
    AST
    HMB
    OPHIR
    MXP

  22. Hello Hub,

    If I need to pick one, i def would say Kefi Minerals.
    Have a look what happened the last month and more news on its way.

    Wishing everybody a happy Xmas and a fantastic, but above all healthy 2012.

  23. Commodities:
    Metminco (MNC). Copper play, nicely post IPO with takeover potential. Global recession priced in, but cars and computers (inc Apple products) will still sell.
    Ophir (OPHR). Oil. Big drilling programme in 2012, FTSE 250 (so maybe less manipulation) and the benefit of Dominion’s assets
    Other sector
    Blinkx (BLNX). Volatile and associated with Autonomy’s take out – but in a youthful high tech sector.

  24. 1. Plexus Holdings (POS)
    2. Patagonia Gold (PGD)
    3. Enquest (ENQ)

  25. Judging by the drop on aim over the recent months and the possibility of further drops it looks like we may have some multibag possibilities by the start of 2012. The oil industry has taken some big knocks lately but with all analyst pointing to the future rise in the oil prices they look like the best bet. However I have tried to vary my choices, here they are.

    CHAR – Just a delay before lift off

    FOGL – Rig arrival will signal surge

    BLVN – Resources will be proved up

    KMR – Mine full capacity in 2012

    TCG – Just will not be let down by backers

    ZOO – Technology will be proved eventually

    RRL – Puntland is the maker

    SXX – Massive resources

    XEL – First oil will see the SP rise

    AFR – Kurdistan oil laws will see this surge

  26. Angel Biotech
    Bezant Resources (likely dividend greater than current sp)
    Edenville Energy
    Herencia Resources
    Max Petroleum
    Ortac Resources
    Pan African Resources

  27. There should hopefully be a few multi-baggers out of these lot next year……

    CHAR
    VOG
    AST
    MXP
    BLVN
    AEX
    CAZA
    SLE
    XEL
    VPP

  28. Hi Hub

    My picks for 2012, for what its worth are…..

    MXP

    BLVN

    BHR

    RRL

    CAZA

    Thanks and GOOD LUCK to everyone.

    Have a Happy and Prosperous 2012

  29. Re 2012 list
    I see the following doing well

    Petroceltic
    Zoltav
    Sirius Petrol
    Afren
    Heritage
    Gulf Keystone

  30. It could be another difficult year but here are six oilies to follow in
    2012
    Antrim Energy AEY
    Soco SIA
    Nautical NPE
    Premier Oil PMO
    Salmander SMDR
    Enquest ENQ

    Congratulations on the many well informed posts Hub.

  31. I notice a lot of the picks for the 2012 hotlist listed above have been private investor favourites for several years and have featured in previous hotlists.

    With these AIM commodity plays, it always tends to be a case of jam tomorrow. The promises are all to often big and the delivery small.

    Just look at the relative performance of the AIM O+G and mining exploration stocks. Performance is dreadful.

    Judging by the performance of AIM and small cap commodity stocks, it is probably fair to say it’s the wrong area to look for big % gains as all to often they fail to deliver.

    The problem is all to often, small cap commodity players find a resource which is just about viable. However, because of this no bigger player wants to buy the resource and it is difficult to secure funding. Instead said company goes on promising monitising the resource but this takes years.

    People forget the time value of money and while it may be good fun holding AIM commodity stocks waiting for that future oil field/ mine to come on line. The irony is better returns could probably had from a FTSE100/250 tracker while re-investing dividends.

    I feel I’ve learnt the hard way. Yes there are some success stories of AIM, Afren, GKP, Asos. But they are few and far between. That is what draws me away from the small cap commodity firms and pushes me towards sectors where performance and delivery can occur in the short term.

    For this reason I would look towards more niche markets/ products.

    So based on the above, my pick is Monitise (MONI).

    1. As stated, there will be two lists in 2012. One (the hotlist) will be commodity focussed and the other (b-list) will this time be focussed on a mix of sectors.

      If small cap O&G successes were ten a penny, then the market wouldn’t be as it is. High risk stocks often carry high growth potential. But the key is to find the high potential stocks and gain entry at a point where they are supported by current operations etc. The likes of Desire (DES) etc which are more based on drill and succeed or drill and fail – are far more risky than the likes of MXP, NPE, IAE or Afren etc. The latter are cheap based on their existing business/assets.

      QE normally sees commodities doing well, hence in 2009 and 2010 – returns were very strong.

  32. Top of the pops GKP(unless the much discussed possible T/O actually happens.
    Then Char
    Mxp
    Xel(could’nt be any worse than 2011)
    Agq
    Cza
    Bhr
    Wti

  33. Well here is the hot stocks for the Hotlish Hub

    fogl

    Bor

    Chariot oil

    BPC

    Trp

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