Quiet Contrarian. Ep58: Trades for July 2024

Buys

Vitura Health – VIT.ASX – I was initially skeptical of these guys, referring to them as the “party drug company”. But since then I have started to research, and am seeing building legitimacy in the use of MDMA and Psilocybin as mental health treatments. This may be a long long long hold, and a bit of a punt (derisked by their profitability if the Cannabinoid market stays high). I took a small position and will keep an eye to see what happens.

Bellevue Gold – BGL.ASX – The market didn’t like the capital raising announcement to shore up their balance sheet (they’re going to use the money to pay down debt, improve operational cash flow, and use this cash to self fund their growth plan). It’s not a perfect plan, but I think I get the trade-off. If the interest rate environment is going to stay higher for longer, it makes sense to swap debt for equity and then grow more. I added to my position as the market punished them below the Cap-raising price. (Bit of a 1-2-3 punch, there was also a drop in gold price, and general market drop on that day too).

Global X Copper Miners – WIRE.ASX – Added more to my position of this on recent price weakness. May be too early, and this could be a 2-5 year timeframe to play out. But I still believe in the long term trends for Copper. A little concern on the negative side, as China seems to be moving away from construction and into new energies. But then the global electrification trend is still on the uptick. Nett positive.