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Buzz on the Bullboards: Gold and Psychedelics Shake Up the Top


Omri Wallach Omri Wallach, Stockhouse
1 Comment| June 25, 2020

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In a time of renewed uncertainty in the markets, investors tend to focus on the more consistent plays.

The recent wave of uncertainty follows the earlier wave, both caused by increases in COVID-19 coronavirus cases and worries over the state of the economy. At first it happened when restrictions were put in place to shut down many markets, but now there’s worries that restrictions will return (or should).

But while small-cap investors focused previously on COVID-19 testing plays and a potential energy comeback, last week some unlikely names shook up discussions on the Stockhouse Bullboards. Let’s dive into some of the newer names claiming their stake on the most-viewed company charts.

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It’s not a new name by any means, but Zenabis Global Inc. (TSX:ZENA, Forum) is far from a regular to the most-viewed cannabis companies on Stockhouse. The Canadian LP had ridden the cannabis wave in May and chipped in with its own strong fiscal results as ZENA climbed from $0.055 on May 14 to $0.16 by May 21. After hovering around that point for a month, last week ZENA retreated suddenly from $0.145 on June 18 to $0.095 on June 19.

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The drop came as Zenabis announced a large public offering for some much needed working capital. At first, the June 18 announcement of the offering was for $15 million, but the next day Zenabis followed up with the pricing of units and significant upsizing of the offering to more than $20 million. Though units would sell for $0.13, the offering heavily dilutes the LP’s shares.


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But despite the drop following the offering announcement, ZENA is still trading above its levels before the May jump, and the ZENA Bullboard has been mixed on the reaction. The bullish see the immediate overallotment of the offering (now up to more than $23 million), the drop-off in short traders, and the company’s recent performance as positive signs of momentum. However, Stockhouse Members like DanielDarden123 reminded investors to stay realistic about what the offering entails.

“First this is not a bought deal, so nothing is guaranteed by the underwriters. They will try to raise the maximum amount by having their brokers calling their clients to provide the cash. Astute investors will assess the likelihood of the attached warrants having any value. Most are obviously thinking that they will have no value given the trading price of the shares and the massive dilution within the offering. Others will dream and gamble without fully realizing the implications.”
RE:Someone can explai how the Public offer works

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On the metals side of the market, the still-rising strength of gold has elevated new discoveries to the fore. Just over a month ago, we tracked the climb of exploration company Freegold Ventures Ltd. (TSX:FVL, Forum) on the Stockhouse Bullboards and share price after scoring a large discovery. Now, FVL has solidified its spot on the chart by maintaining share trajectory and taking the top spot, rising from $0.495 on June 11 to $0.88 on June 24.

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The FVL climb comes partly on the back of a strong discovery and gold market and partly on the company taking advantage. After Freegold’s initial climb, it quickly launched two tranches of $5 million private placements and closed them on May 26 and June 2. As COVID-19 restrictions started to ease in the US, the company announced on June 16 that drilling had recommenced on its Alaskan project.

As FVL has climbed, more investors have flocked to the company’s Bullboard to discuss the miner’s quick rise. While the rise is being celebrated by many, some expect it to be fueled by yet-to-be-released announcements that would explain it in greater detail, and everyone’s eyes are on the upcoming drill results. But when it comes to what kind of results Freegold needs to keep the momentum, Stockhouse Member HillsboroughMan highlighted that it doesn’t take much.

“[How long it takes to drill 150 m?] Fast, and they don't need visible gold. A continuation of the host rock is all they need to see. The transition into barren rock is apparent because they probably know what barren rock looks like on the property. Good grades can be hidden in barren looking rock. They can look at the rock on this property and know what has a good chance and what has a bad chance based on experience with past core results.”
RE:Anybody here know how long it takes a crew to drill 150 m?

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While most healthcare investors have focused on COVID-19 over the last few months, we’ve also seen sustained and rising interest in psychedelics. Specialty mushroom company Champignon Brands Inc. (CSE:SHRM, Forum) is one of those plays, and has solidified a spot on the most-viewed healthcare Bullboards over the past few weeks despite SHRM shares trending downwards, last week going from $1.11 on June 11 to $0.89 on June 19.

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Following the weekend, however, interest in SHRM started spiking even as shares sat at $0.89. The reason was a cease trade order on June 22 that seemingly came out of nowhere, though Champignon shortly followed up with an announcement on the same day that it had been selected for a continuous disclosure review by the British Columbia Securities Commission.

Following the CTO and announcement, the SHRM Bullboard was split into camps on what was happening behind the scenes. The company wasn’t the only one that received a CTO on Monday owing to an apparent lack of proper paperwork and disclosure, but users were unsure of the implications and of how long the CTO would last. As many like Stockhouse Member Bofovom1 pointed out, however, many “worrying” investors were still interested in investing in the psychedelics play, and SHRM has a reputable management team, though new CSE listings often have early issues.

“…There is certainly a lot of things needing explaining at this point, but I’m going to ride this out. It would be very unlikely that someone of Dr. McIntyre’s stature would be part of any sort of scam or pump and dump, and much more likely that this was a oversite, though incredibly costly. Very much looking forward to some updates on the halt, spinoff, and name change.”
RE:New interview with Dr. McIntyre

As the markets continue to show signs of volatility, we expect more new faces will show up as the most-viewed companies on the Stockhouse Bullboards. Everything is linked to the markets and the economy, and recently our Investor Pulse Poll has been asking if that (inevitable?) second wave of COVID-19 infections is coming, and when. Early results tended towards the Fall, but recent case spikes in the US swung the pendulum slightly towards the current summer.

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But as we’re learning, each sector is experiencing the uncertainty ride differently, and we want to know where your money is at! With many of our top sectors and most-viewed companies changing regularly, it’s important to check in and see where small-cap investors are focusing their investments, so head over to the Stockhouse Homepage or click the image below to add your voice and let us know!


(Click image to go to the poll)

Of course, the story for each sector is likely to change by next week, and sometimes even more quickly. It’s more important than ever for small-cap investors to stay up-to-date on the current conversations and company movements, and there’s no better place than the Stockhouse Bullboards. For previous editions of Buzz on the Bullboards: click here.


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