Quiet Contrarian. Ep50: Trades for November 2023
Buys
Reckon Ltd – RKN.ASX – Continuing to add to this position. I have a bit of concern, when taking a bit of a chartist look, I noted that they tend to drop in price after the Feb announcement. Not sure if this is due to previous structure of the business model, or something else. I have faith in their quality and that they are well run with a good dividend. Will long hold these guys.
Neuren Pharmaceuticals – NEU.ASX – An orphan drug company for treating Rett syndrome, I feel the CEO has a true passion for providing a cure for the disease. They have managed to get through the clinical trials with minimal dilution, very impressive. Now making money. The Money comes from a royalty structure for their drug that scales exponentially as they sell more (commission, and bonuses on sales amounts (which can seriously affect income), and other milestones (e.g. approval in new jurisdictions). Early indications are that they are selling faster than expected, and will hit some of the first milestones pretty quickly (if quarterly numbers maintain).
Brightstar Resources – BTR.ASX – Similar investment premise to HGO, but for gold. A cheap mine restart, their focus is to get easy gold out of the ground and sell it ASAP. Then use that money to get things running more fully. Have a good newsflow. Just did an institutional cap raise, which is wise to get in early (before the high interest rates really cause money to dry up), which will help them with the next stages of getting their own mill up and running.
Neometals Ltd – NMT.ASX – Still low off the 1-2 punch, and then announced a cap raise, so add a 3rd. Added small amounts to the position, and continuing to watch. I like their long term prospects, bit worried that they’ll go into a dilutatory phase as they try to get facilities up and running.
IGO Ltd – IGO.ASX – Extremely well run miner, going through a pivot from precious metals into battery materials. They are busy busy bees, and I find it hard to determine what’s going on in their reports, messy and mixed. Some good some bad. Can’t get any sort of gauge on what their income will be this year. This will be a buy into weakness, as the underlying business is well run.
