ShareHub Hotlist 2019 Review – Week 36

The William Hill St Leger Festival kicks off today and it officially marks the end of the summer malaise and a return back to the desks for many traders, city suits, ‘real workers’ and of course company directors, some of which make a summer holiday look like it lasts all year round! Some will be replenished by the release of stress. Some sporting tans that look more orange than they should and there are those that look positively grumpy at the idea the Autumn season is upon us. Whether seasonal blues or just emotional headaches from watching England perform houdini type acts during the Ashes, it’s time to refocus minds on investments/folio’s and what lies ahead for the rest of the year.

Markets have improved of late and it’s a puzzle as to why as China / US talks are none the closer. Brexit is still heading for an inevitable extension and UK politics is heading for a rude awakening should MP’s decide on another election. ‘Fed up’ or ‘cheesed off’ is the best way to describe the self protectionist Tory government, Labour and just about any other party around today. Charged with delivering the ‘peoples’ Brexit… and they end up delivering zero. Over 3 years (yes 3 years!) have been wasted. Now, your average degree student could be guilty of wasting year 1 out of 3 while they adjust to laundrette chores, learning to feed themselves and discovering hangover cures. But by year 2 they have knuckled down and year 3 they have graduated albeit with a debt mountain behind them. UK Politicians (and EU included) have thus far achieved nothing in 3 years. It’s just been one long bender. How many airmiles notched up? How many volovants swallowed? And at what cost to the public? Do we have a figure on it yet Mr Javid? Would you care to disclose it? It has been a disgrace and what’s worst, some are now talking about holding another referendum! Rinse and repeat? Oh please… noooo!

Moving on…

Week 36 Review:

TheShareHUB picks bounced back strongly over the summer weeks and now leads the pack. Commodity focused stocks do tend to suffer more during the summer weeks so this bounce back comes as a bit of a surprise especially against an apparent weak global growth backdrop. Across the top ten picks, Gold’s resurgence has certainly helped Hummingbird Resources fight back from the abyss. Should ops deliver as management hope, the company should be back to where they were 18 months ago. Weather permitting! Elsewhere, it’s good to see CERP finally showing some strength after a benign or stagnant first half. Investors are keen to see a well spud on the SWP and news of a South American acquisition is long overdue. Patience is a virtue (as they say). Which aptly applies to Amerisur Resources too… in offer talks with multiple interested parties and not a peep from them in months! The company is expected to deliver interims tomorrow, so investors might get something to chew on around then. That said, 6 months is the norm for acquisitions these days so AMER have until Dec 31st to get it all agreed which would tie in nicely with some management options that are due to expire. Nothing like a good old self imposed incentive to drive management forwards! SXX continues to recover but looks down and out for 2019 based on recent equity dilution. Wishbone much the same. Both have been very disappointing. SOLG continues to perplex investors as it builds on its huge resources. Concerns over funding usually emerge around now so that might be one reason for the poor share price performance of late. Finally, Petra Diamonds looks priced for liquidation. How on earth the market can adopt such an early negative view is beyond comprehension. The company has 3+ years to deliver on the self imposed 2022 project plan with debt reduction targets ranging from $150m to $210m. The Diamond market is struggling at present, but that’s been the case for the last 3 years. At somepoint, it should flatten out and even begin bouncing back. Petra Diamonds are cited to report on September 16th and investors should expect a confident statement from the CEO delivered by solid numbers if past RNS statements are to be followed. Hit the right tone and spot and the share price could be doubling fast from 8p lows and still look cheap!

Saddle up, plenty of jumps, hurdles and escape tricks required before this year is out as nothing is ‘uneventful’ these days with Mr Trump tweeting without parental guidance locks on.

TheShareHUB top picks 2019 – week 36
Guardian top picks 2019 – week 36
TheIndependent top picks 2019 – week 36