The Doc is back in Town (Part 2)
“…Here are a few ideas for people to look at. If you back every horse in the race you can’t lose…”
New to investing? Need a strategy? Not really sure where to start in the minefield of Financial Markets? Maybe this podcast will help you on your journey.
The famous last words of American gunfighter, gambler and dentist Doc Holliday allegedly were: “This is funny.” And in April 2021, his modern day Twitter doppelgänger @DDS_DocHoliday told investors that at the end of the year there was going to be carnage on the markets. He wasn’t wrong.
The podcast he had with us was supposed to be his last after 15 years of trading, but we’ve persuaded him to come back and talk to us about how the market, in its current condition, can still present opportunities. The Doc is back in Town. For good? We will have to wait and see…
In this second of two podcasts Doc talks to Sarah Lowther about some standout opportunities. He uses horse racing analogies and metaphors advising traders to hone their instincts, take their time to analyse data patterns, but not to be too tardy or have their heads turned by hearsay because some of the opportunities he’s identified will come to pass sooner than you think.
We recommend listening to this interview in full, but for the time pressured, we’ve provided timecodes and summaries to make your listening pleasure – just that.
Companies covered by Doc include :
#AET #BOO #CEY #CHF #CWR #FAR #GKP #GDR #HARL #LBE #ODX #ORPH #PDL #POLB #RKH #SDRY #VRS #WIX
0:32 Afentra #AET. Doc praises the strong ex-Tullow Oil management team involved in this business. It’s currently suspended pending a transaction, but Doc says this is one to watch when trading resumes because prior to the suspension the market cap was the same as the cash position “which is bananas.”
02:37 Centamin #CEY is described as “a really interesting opportunity” and one that is currently trading at just under half its year high. Doc says the company will benefit from the current global uncertainty and inflationary pressures that typically result in an increase in the gold price. “The gold environment is going to be a healthy one moving forward.”
04:12 FAR Limited (ASX:FAR) is decribed as “one of these little gems.” The company has reallocated capital in terms of a special dividend and is now embarking on what Doc calls “ongoing risk-free drills,” and if they have a strike then the stock “will be back to $1.50 plus.”
05:31 Doc explains how we can trade non-UK domiciled stocks such as FAR Ltd. and how the trader should allow “instincts to sharpen.”
08:24 Versarien #VRS and SuperDry #SDRY tie-up. Doc did really well out of Superdry in 2020 and says there’s great opportunity in the recently announced partnership and “perhaps this opportunity is something that sees the tills ringing really, really quickly.”
11:59 Chesterfield Resources #CHF. Following the company’s early December regulatory news statement, Doc isn’t surprised they’ve found gold in Cyprus as he believes there’s a huge amount of it there. “There’s a huge opportunity in Cyprus. It wouldn’t surprise me if they do a bit more drilling as there’s too much evidence for them to walk away.” Doc references a United Nations survey which reveals there’s “zinc and nickel out there in abundance and there is an immense amount of copper left there.” He thinks Chesterfield is one step away from making a world class discovery and he hopes the team won’t be distracted by their deviation into Canada. He notes #CWR is also in Cyprus and one company will benefit from an outcome.
16:26 Open Orphan #ORPH. Doc says the business is in a stronger position now than it’s ever been. The current share price is an opportunity and Doc says “It shouldn’t be where it is now.” He says there’s opportunity for the company to be “taken out” because that was always founder Cathal Friel’s plan.
18:00 Poolbeg Pharma #POLB. Doc says this stock has “never really got out the starting blocks at 10p, but are we starting to see a mirror image of how Open Orphan traded for the first six to nine months?” Doc wouldn’t be surprised to see Poolbeg emulate Open Orphan’s trading pattern. He talks about the CFO as a “young, dynamic, enterprising guy,” who like some of the board has “chucked a load of their own cash in the stock” which telegraphs they expect it to do well too. “Both Orphan and Poolbeg have got mileage in them.”
18:51 Omega Diagnostics #ODX. Doc wouldn’t write this company off inspite or despite “the disappointing harsh correction in the share price.”
Doc also sees opportunity in:
19:10 Boohoo #BOO. The stock has been pummelled and Doc sees an opportunity at £1.
19:28 Wickes Group #WIX spun out of Travis Perkins #TPK in April 2021.
19:33 Longboat Energy #LBE. The former darlings of the AIM market.
19:43 Harland & Wolff Group #HARL. Doc says these are one of a few companies that can do work for the MOD, and he’s almost certain they’re going to start to announce government contracts.
Look out for more of these interviews with REAL investors next year. Simply follow @TMSreach and be first to get the latest news and views on the junior, emerging and major markets.