A disappointing week for TheShareHub top ten picks. Thus far, updates from Petra Diamonds, Hummingbird Resources, W Resources and more recently Columbus Energy Resources have all been well below expectations. Not surprisingly, each stock has been treated to the normal heavy handed market treatment. PDL has improved of late after proving that bigger stones can be found using the current mining strategy. If they continue to deliver some whoppers the market might begin to wake up and buy back into their recovery story. At 19p, the share price is off 17p lows but a fair distance away from the 50p+ seen last year. HUM’s update was nothing short of ‘awful’. Yanfolila began life on time and on budget. Since first gold pour, it’s been downhill and downhill fast. Problems with resources, grades, infrastructure (bridges), mine stability and local artisinal workers have all led to HUM’s decline. Poor management decisions have not helped either. HUM will be praying the ‘wet’ raining season is kind this year as last year was horrific. It could take a few quarters yet before recovery signs are seen. And finally onto, CERP. The company delivered an update which investors had been waiting some 6 months for. News on the SWP drill arrived but disappointedly looks considerably watered down. Big prospects and deep wells now look more like shallow/mid prospects and a single well at best. Production is down from 1000bopd to roughly 650bopd. That was a shocker and there’s no way the CEO can dress that failure up despite trying too! Mr Koot is beginning to lose some shine but for now Schroders seem to be keeping the faith with him. The next update is likely to be around M&A with a possible transaction taking place in South America. It’s unclear how this will be funded and investors are beginning to tire of the constant share placings and subsequent dilution.
Following on the dilution theme, W Resources seems to be intent on issuing shares like confetti. The CEO continues to dilute smaller investors and is showing no signs of letting up. Business progress has been slower than expected and investors are being penalised for managements inability to deliver the project on time and on budget. Harsh but fair. There’s no sugar coating performances or news here on TheShareHUB. Unlike other blogs, TheShareHUB is not paid or ‘lunched’ in return for spinning glorious/favourable reports or articles. If it’s bad, it’s bad. If it’s good it’s good. There are plenty of catalysts / news drivers coming in the future which can drive share prices higher across TheShareHUB picks so lets hope we have got all the bad news out there now and can look forward to some improved updates across the top picks list. Near term, Amerisur Resources looks the most likely stock to make a significant move providing the drill bit delivers the goods of course. Watch out for SOL-1 spud news which looks likely for next week based on previous Indico-1 well/rig preparations.
Week 16 – Review:
The Independent newspaper picks continue to perform well bolstered by major Indices performances. Commodities have been slow to adjust to the bullish Oil market and Gold’s recent wobbles on lower risk backdrop has not helped either. Slowing global growth fears continue to hold many O&G and Miners back. There are plenty of reasons to see the DOW top off and return back to 24k levels and not many bullish catalysts to see higher highs. The Algo bots make more money from volatility and it’s heading towards that period where if major Indices can’t push higher, then may as well push them lower and go again? That’s been the theme over the last 12months. Sell in May? That’s one to ponder.