Stockhouse Ticker Trax is published to subscribers every Monday (
annual cost only $195). We focus on
best-in-class high growth small companies trading on the TSX and TSX.V between 5 cents and $3 with a market cap below $300 million.
Equity Analyst Danny Deadlock has 30 years of experience speculating on Canadian penny stocks and targets capital gain opportunities and diversification in metals and minerals exploration, energy, and technology.
For the experienced investor, Ticker Trax provides an extra set of eyes and ears (idea generation) and for those learning to invest in micro cap stocks, we provide stock picks and market education.
Subscribers receive; (1) new research (stock picks) weeks in advance of being featured on this weekend column (2)
exclusive access to our list of junior gold exploration companies (critical for peer valuation), (3)
exclusive access to our list of Cash Rich micro cap companies (our Virtual Vulture Fund) which contains 80 companies with almost $3 Billion.
Both tables are updated monthly.
While this is easily the ugliest market (in history) for TSX and TSX Venture micro cap investors, it is possible to still make big money - not easy – but possible.
Here at Ticker Trax we have been through some of the same beatings as most everyone else - in particular for anything resource related. My cash rich picks have held up "relatively" well but even stocks like Sunward took it on the chin because senior management treats their own company like it has Ebola!
FIRST - VENTING ON DIRECTOR COMPLACENCY
Sunward Resources Ltd. (
TSX: T.SWD,
Stock Forum) (13 cents)
Net cash $22 million worth 15 cents per share
Shares outstanding: 143 million
Sunward is one good example of a company's management and directors watching their sinking ship as the share price drifts into the abyss and they fail to do anything about it. It is either sad or pathetic to watch - I think both.
I have been following SWD since summer with Ticker Trax subscribers but September 26th at 15 cents posted a report on them publicly in this weekend column:
https://stockhouse.com/opinion/ticker-trax/insights/2014/09/26/swd-15-cents-$23m-cash-get-10m-oz-gold-project-for-free
Recently SWD has been trading at 10 and 11 cents with next to nothing for buying support. I totally understand that the market for small stocks is terrible and that gold stocks in particular are doing very poorly. I also realize SWD's gold project in Colombia is low grade and uneconomic.
BUT in the right hands, a strong board or competent senior management team would realize the huge value of $22 million in this market and the type of high quality assets they may be able to acquire with that cash OR through a merger if they maintained their share price at a respectable level.
Instead, the company appears to be doing nothing to support their share price and in 2014 has only issued one news release (aside from mandatory financial filings).
There are hundreds of companies that would give their right arm for that bank account but these guys just take it for granted and let their shareholders suffer as their investment erodes.
I think the keyword here is Complacency and it seems the group running Sunward is VERY good at it.
CEO: Philip ONeill
https://www.sunwardresources.com/s/management.asp
https://www.sunwardresources.com/s/board_of_directors.asp
Corporate Presentation:
https://www.sunwardresources.com/i/pdf/ppt/Presentation.pdf
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TODAY’S TAKEOVER OF ELR WILL PRODUCE BIG GAINS FOR TICKER TRAX READERS
Eastern Platinum Ltd. (
TSX: T.ELR,
Stock Forum) ($1.75)
ELR was a company I featured a few times to Ticker Trax subscribers and once publicly in April at 7.5 cents (equivalent to 75 cents now because of a recent rollback in their share structure.
https://stockhouse.com/opinion/ticker-trax/insights/2014/04/04/will-russian-sanctions-help-elr-break-7-5-cents
In that report I presented three scenarios and one of those was “a takeover by the Chinese”. That is exactly what we saw today.
This was one of my cash rich plays where the company was trading below cash value of approx. $85 million yet they were sitting on a large PGM mine in South Africa that the market literally deemed as worthless – so what else is new ?!
The stock has already gained > 100% on today's news so congratulations to anyone who held onto this. It wasn't easy when the markets were melting down but now I know why ELR remained stabled in the $0.80's recently.
As I emphasized last December when Canadian fund giant Invesco was buying, they also knew the value of these assets.
https://stockhouse.com/opinion/ticker-trax/insights/2013/12/27/powerhouse-invesco-accumulating-7-cent-eastern-pla
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TICKER TRAX GAINS SINCE SUMMER - VRY up 90% and SPY up 190%
I have been like everyone else and picked some duds this past year. Stocks that fundamentally seemed very strong but thanks to poor management, resulted in losses.
The point I would like to make with VRY and SPY is that
these small stocks can still produce excellent gains even in a horrible market BUT a person needs good diversification. In 2015 for example I will be looking at more industries outside of resource exploration and development.
There will still be opportunities and money to be made in resources but an investor will need to be VERY selective.
TALE OF THE TICKER TRAX TAPE SINCE SUMMER
> Some general updates on stocks we were following - like (
TSX: T.RDI,
Stock Forum).T 26 cents (strong diamond company with a share price that's dead in the water).
> Oct 6th PEM at 6 cents - gold spec that lost half its value as the sector collapsed
> Oct 27th PNP at 18 cents (currently 17.5 cents).
> August 25th
(
TSX: V.VRY,
Stock Forum)
0.19 high impact, high risk oil – VRY Currently at 35 cents
Paraguay deep oil exploration approaching target mid November
> September 22nd
Lipstick on a pig, RDI, SPY (new at 0.19) – SPY Currently at 55 cents
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** TWITTER NOTE: I maintain a twitter page at -
twitter.com/tsxalerts
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Disclosure: Danny Deadlock owns nil shares of ELR / 200,000 shares of SWD / 100,000 shares of VRY / 50,000 shares of SPY
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