(This was a response to question from Jack Brumby in his Sylvania Platinum (LON:SLP) post...https://www.stockopedia.com/content/sylvania-platinum-cash-rich-growing-and-cheap-567712/ ...it got more involved than i planned so put it here)
Hello Jack
I'm not very keen to talk about stocks that I might own but don't yet if they are small cap. I suspect my views and selections are of low interest with Stockopedia crowd (won’t be seen as very investable and not ‘quality growth’) but here’s a few things I have bought some of on falls:
Yellow Cake Yellow Cake (LON:YCA)
Cameco - $CCO
Jadestone - Jadestone Energy Inc (LON:JSE)
Duke - Duke Royalty (LON:DUKE)
Mercia - Mercia Asset Management (LON:MERC)
Talking commodities, I’m v interested in Uranium. I’ve be in a small degree for about 18 months and on a quite macro/thematic basis in that I think the commodity has bottomed out. Yellow Cake is special vehicle giving direct uranium exposure. Cameco is second biggest producer behind Kazatomprom. KAP is actually probably the ‘higher quality’ investment but its Kazakh! I mean higher quality in financial metrics terms butt that obvs comes with opaque political motives and general mgt standards that are likely to be below the Canadians. There is no such thing as a quality investment in Uranium…this is very high risk area. There’s a handful of smaller miners and all are struggling to get by. No one makes money at the current commodity price. Cameco and Kazatomprom have taken capacity out of production. Its super uncomfortable but no one making money at current prices plus capacity being taking off-line (and many smaller operators going under) is the classic capital cycle point to enter a commodity….All that said uranium is weird and uncomfortable - tiny little commodity markets always are. I don’t expect uranium to be safe through market volatility but it has already busted sentiment and it is market pretty independent of financial market and economic cycles…I believe market stress is likely to hasten people finding uranium interesting.
More commodities…Jadestone….I’m not often an investor in oil sector. I feel having an edge on…
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Hi Mojomogoz,
Cheers for taking the time. Fascinating read. There’s a lot of thinking to unpack so I’ll probably revisit a couple of times to consider various points… For now:
Re. “Stocko crowd” I’m all for diversity of opinions and styles but do take your point. I haven’t looked at the stocks you mention in detail but I will as I gain a lot from getting a sense of where other participants see value and figuring out what it is that they might be seeing.
Re. Old and end field work, I’ve been looking into UK decommissioning and govt desire to transform North Sea learnings into an exportable specialisation. It looks like a good theme to get clued up on but I still have work to do there.
Similar cash position (more a fluke of timing than anything else) so observing markets & developments with interest. There might be opportunities right now but I'm avoiding rushing in. The natural impulse is to act in these kinds of markets but for now I'm trying to be a bit more "wait and see". Time will tell if that's the correct course of action, I guess.
Ciao!
