What are you researching this weekend?

I’ll start:

  1. BIDS - to top up/average down or just hold and wait.
  2. HL - Entry looks good at £15.
  3. Check out discounted investment trusts / value investments. Especially Asia - things like DGN as along term investment at an 8% discount albeit long running just like the management team.
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I don’t think that I will be able to fit it in this weekend, but at some point I’d like to look at Brandshield, Ferratum and Euronav.
Bidstack is also on my list actually.

I have been working on a spreadsheet that I can track my portfolio in a custom way and with visuals (pie charts etc).
Stock wise I am consider mining/commodities to see how/if I want to add to my portfolio.

Yes I track mine in sheets, and have it set to send me alerts if a trigger is set - like a spike in price or something so I don’t need to monitor day on day.

I also like to compare my personal investments as if it was run as its own fund, as a performance benchmark of sorts.

Kulicke and Soffa industries (semiconductor)
Casa systems (5g)
Tractor Supply Co (have a guess)
All fairly under the radar, but look good companies to make some £ from

One of last week’s IPOs caught my eye, so I thought I’d look into GreenBox POS that just uplisted onto the NASDAQ.

Aerion caught my eye last week. I’ve largely gone through it now.

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ONTX - Onconova Therapeutics. was just brought to my attention about their involvement with breast cancer research. figured its worth a look for a “medical family history” inspired allocation pie.

What’s the verdict…?

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So my thoughts this weekend.

1) BIDS - not enough information at this time to invest/average down.

It is still a relatively new/niche market, although that being said there are about 2.7bn gamers globally, so the potential is huge. Their recent RNS quoted digital ad spending overall to be around 332bn in 2020 so there is a lot of growth potential in this new area.

The company revenue in 2020 was 1.7m, up from 140k in 2019, so good news there as well.

Causes for concern remain the 7m in losses for 2020(5m 2019), in addition to the staffing increase from 20 to 69, and cash in bank of 2.7m.

To quote the 1st Feb RNS

Following receipt of a substantial non-trading cash payment in January, at the end of January 2021 the Company had available unaudited cash resources of c.£2.76m.

It is clear that the company will likely require further funding to remain a going concern, with the likely result to dilute the position of remaining shareholders, hence the SP drop seen this month as a reaction. Similarly, I would be concerned around the non-trading cash payment, and the terms around repayment of this.

My view, is the company IPO’d too early, and ideally needs VC funding for the near to medium term, but is a rather interesting, risky but potentially lucrative proposition for those invested willing to bide their time. Until more information is released, I can only remain a hold.

2) Hargreaves Lansdown. This to me is a buy, short to medium term hold.

The recent SP drop could be explained down to one thing - the flooding of the market with Mr Lansdown selling a further 300m worth of shares at £15.35 a share.

Similar over reaction can be seen early 2020 as well.

As a director, he still holds a material position in the company, and with strong fundamentals and a good dividend coverage of around 1.3, I can see this recovering back up to around the £17-18 mark as the year progresses.

3). I am struggling to access data on investment trusts, in particular their premium/discount to NAV going back more than 10 years. Work in progress.

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Yeah, looks ok to be honest. Its tough without the financials. Story looks good, model theory checks out and has some high-quality partners.

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Are you researching it based on it going public through a SPAC?
How easy are you finding it to analyse an un-listed company?

https://www.bloomberg.com/news/articles/2021-02-18/boeing-backed-aerion-is-said-in-talks-for-altitude-spac-listing

It’s incredibly tricky because you’re relying on investigate journalism and PR. At least I am confident enough to take a small position, with a view to buying more on receipt of the financials (which will be terrible I imagine!)

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