ShareHub Hotlist 2019 Review – Week 21

A short update this week. Much of the same across markets with China/US still bashing each other with handbags. The idea of Boris Johnson taking over the country from Theresa May can only be entertained within what has become a madhouse of a conservative party. The country needs stability. It needs some ‘grown ups’ and thank goodness Mr Bercow is staying on for another period time. Without him, it would be like something from Lord of the flies. Any Conservative politician that has been directly involved with Brexit needs to remove themselves from the list of PM candidates pronto. A fresh face, one that has not shown a single level of self preservation over importance of Brexit deserves the premier post.

Week 21 – Review

The newspaper picks continue to stutter as the market continues to show signs of risk off sentiment and overall cooling of interest while US and China bat it out. TheShareHUB picks suffered a blow after a terrible update from Wishbone. The company began 2019 with plenty of optimism but now appears exhausted and ready to fold. A poor show and investors deserve more answers from management. More problems at Hummingbird’s Yanfolila means a more protracted and dragged out recovery phase ahead. Ops appear to have stabilised but costs have spiralled and with wet season approaching, the company cannot afford any further reduction in cash flows/production. Better news from PetroMatad on drill plans and permits ahead of a July spud. This may slip to late July or early August but when the spud finally arrives, the stock should be flavour of the month. Elsewhere, Petra Diamonds has had a choppy time of late as large institutional holders go through transition periods and that’s taken its toll on PDL’s share price. Based on valuations and broker targets, the stock looks every part a 45p share trading at 22.5p. The traditional summer ‘half price’ sale is already underway there. Not without risk of course, but the worst does seem to be over for PDL. Cash flows are expected to be stronger in the final quarter which ends June 30th. Broker consensus targets range is between 30p to 50p. Although, there is one broker sitting at 25p. Finally, CERP continues to drift lower as investors await some solid signs of a much promised SWP exploration well in 2019. TheShareHUB picks need some good news and hopefully that will come from Amerisur Resources which have two drills underway. Platanillo-26 is a minor exploration play and not of much significance or importance, however SOL-1 on the CPO-5 block is important and the market keenly awaits the results from this well which should be forthcoming in June.

Independent top picks 2019 week-21
Guardian top picks 2019 week-21
ShareHUB top picks 2019 week-21