ShareHub Hotlist 2019 Review – Week 12

Good performance from TheShareHUB picks boosted by the recovery of CERP.L which has been long overdue. A minor pullback across the major indices has seen the DOW, S&P and FTSE all drop off from their 2019 peaks. This has dented performance across the newspaper picks which were doing very well since the year commenced. As highlighted before, end of quarter trading (particularly end of UK tax year) tends to be a bit choppy with volume and direction picking up from April 6th with minor dip for Easter period. Then comes the summer drift months and a return to action come St Legers day and the usual bonus ticking run into Christmas period. Of course, it’s not always that predictable but at present with the Fed Reserve seemingly happy to sit on their hands through 2019, markets have very little impetus or fear to trade with or against. US/CHINA trade talks drift along. Brexit drifts along. Global growth stutters and yet all through this markets trade like a finely tuned autobot algo. Is anyone actually out there? Hello?

Week 12 review: TheShareHUB picks take the lead (for now). It wasn’t that long ago that PMO was trading like a Brexit MP – Unwanted and quite frankly getting no where fast. The stock is now up over 50% from lows seen earlier in the year. There should be more to come from PMO in 2019 and many other ShareHUB picks should soon be budding into the warmer spring climate. Results season has already kicked off with Enquest and PMO reporting solid progress. This will keep senior debt holders happy and in Enquest’s case, buy some much needed time. Fears over debt defaults and covenant issues seem to have disappeared for now. Enquest have Magnus to thank for their survival and PMO have the EoN deal underpinning their recovery. Without these deals, both would have likely fallen into debt holders hands. Since the recovery years of 2016 to 2018, Oil has began to find a solid footing despite US shale production rising a further 15% to 12mbopd. Yet the all important M&A in the sector remains elusive. After Faroe/Ithaca deals over last 2 years, only Ophir Energy of late has succumbed to a cheap predatory approach. If the Oil market continues to stabilise then M&A should be alive and kicking again. The likes of AMER, PMO, TLW, ENQ and many others could all be of interest to deep pocketed mid tier players. Elsewhere across the miners, SOLG continues to attract interest and surely their days are beginning to become numbered. BHP and Newmont the likely candidates. SOLG will be keen for more time to prove up their world class assets but in this market, time is not something that comes along for free. SOLG will soon be faced with a decision to make regarding future development plans and subsquent funding. In reality, the prospect of seeing the assets through to production based on a 100% interest looks impossible. It’s a big boys project and deeper pockets are required to help fast track development/production in a way that pleases all stakeholders including the Ecuadorian Government.

Roll on week 13!

ShareHUB top picks 2019 – week 12
Independent top picks 2019 – week 12
Guardian top picks 2019 – week 12.png