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ShareProphets – Catenae Innovation #CTEA proof-of-concept agreements & management appointments all good – BUY
The former is with “a leading provider of rights included music”, with the Digital Asset Registration and Transactional Tracking system – the first phase of a distributed ledger-based (DLT/Blockchain) application development – having been successfully demonstrated at B2B music event, MIDEM. There is then also an agreement with Aston Villa FC for OnSide Pro – which is to be used to manage a number of coaching sessions and community engagements.
There are no financial indicators provided, but these follow a recent “first agreement for the provision of Trust in Media’s Fanbase service to one of the UK’s largest entertainment promoters representing some major names in the music industry” and further help confidence in annual pre and post tax profits of several hundred thousand pounds by as soon as next year we suggested possible in our March share tip.
This is further the case with Tony Sanders now confirmed as permanent CEO and experienced technologist (including being the Technical Delivery Manager for BBC’s iPlayer project), Alan Simpson, joining as Chief Technology Officer.
The shares have slipped back since we last updated and there remains clear turnaround risk. However, we also reiterate that there looks some exciting potential from the current sub £3 million market cap – both speculatively (e.g. the shares have previously touched 0.7p+ on a blockchain spike) and more fundamentally (the profit potential from sound businesses in growth areas). As such, at 0.15p or better – and looking to sell at comfortably above 0.2p – the stance remains buy.
View the article at ShareProphets website here
Powerhouse Energy (PHE) is a company which I have previously been very negative on, and rightly so given its performance over the past few years. The company specialises in waste-to-energy production, either in the form of generating electricity or producing hydrogen for fuel cells, but in the past its gasification technology has failed to really take off in the way that investors had hoped.
It had also been debt-ridden in the past, with lender Hillgrove holding a debenture over the assets of the company, but back in February 2017 it managed to raise £2.5 million, which was enough to settle the outstanding £2 million that it owed and it is now debt-free and looks to be in a healthier position. A remaining amount owed to Hillgrove was settled via shares at 0.5p at the end of January. Whilst I wouldn’t exactly be rushing to put my life savings in here, I do like the idea of the technology and if it is able to deliver this time around than I can see upside potential, especially considering the sector in which it is operating. But whether it can prove that it really has turned things around now still remains to be seen.
Powerhouse certainly does seem to be making progress though, with an extended trial of its G3-UHt gasification unit, with old tyres being used to produce syngas that contained in excess of 50% hydrogen, and no carbon di-oxide. Testing has now been underway for more than six months and the unit has been performing as expected with a feedstock of plastics, and it will now be hooked up to the micro electrical grid at Thornton Science Park to see how it handles supporting its heating and power plant.
As long as everything goes to plan with the testing, and the company is able to prove that there is demand for the product, which hasn’t been evident in the past with previous systems, then it could have timed things just right when it comes to getting these units into production. Waste plastic is a hot topic at the moment and a lot of time and money is going into finding ways to deal with this problem. The beauty of the Powerhouse units is that it will actually get paid – typically between £50-£90 per tonne – to take plastic, and at the other end will then be able to sell the electricity produced, or eventually the hydrogen fuel.
Hydrogen fuel is still at a relatively early stage, but it looks set to really take off as EU countries look to convert more vehicles over to run on hydrogen – for example, out of the 8,500 buses in London, currently only 23 run on hydrogen, and there is also interest in converting lorries and other forms of transport as well.
It isn’t just the EU that is looking to go down this route, and Powerhouse currently has a non-binding memorandum of understanding with Qatar to look into providing these systems to provide fuel for filling stations catering for fuel cell vehicles ahead of the World Cup in 2022. Although I wouldn’t put too much trust in a MOU at this stage, as often for these smaller companies they aren’t worth the paper they are written on, and the potential for any deals still remains to be seen.
In terms of the economics, the company estimates that a single site can process at least 25 tonnes of plastics per day – and as much as 100 tonnes potentially – and that would produce hydrogen worth £5,000 per day, plus a minimum of £2,000 per day to take the plastic, so that would give annual revenue of at least £2.5 million per site. It is also working alongside Waste2tricity Limited and has developed a ‘CORE’ version of its system, with Powerhouse receiving a 20% licence fee from any units sold, alongside any revenue from its participation in these ventures.
The company doesn’t burn through excessive amounts of cash when compared to other similar sized companies, at typically around £70,000 per month, and salaries don’t appear to be particularly high. The last set of annual accounts for 2016 showed that CEO Keith Allaun took a salary of just £66,000. The risks here are that the company won’t be able to sell any of its units, nor be able to expand rapidly enough to take advantage of this market as it grows quickly in the coming years even if it does manage some sales. There is also always a danger of better technology being launched by its competitors, as this looks set to be a huge market in the future.
On the positive side though, if it can finally prove that there is market demand for its product, then there is plenty of potential for it to grow. I view this company as very speculative, in a similar way to investing in any very early stage technology often is, and this market is still very much in its infancy. Currently it is valued at around £7.6 million at a share price of 0.52p, and I can see potential for anyone who likes the idea of the technology, or who usually invests in higher risk oil and mining companies, and is looking for something a bit different but with similar levels of risk. It was one of my picks in the recent Dragons Den sessions at the UK Investor Show.
Read the full ShareProphets article here
The latter stuff is vital for the making of steel. And steel is becoming more and more needed to feed the growth of infrastructure in developing countries, not to mention more established areas of industry. I bought the shares for about 30p and saw them rise to more than 50p, partly I suspect because two big investment institutions came on board. Then came a whammy. There is now a legal tussle with the Polish government.
When the news came the share retreated to my original buying price in a shake of a donkey’s tail. But I think the selling may well be overdone and the result might be a second chance to buy the shares cheaply.
As usual, with mining matters, the situation is complex. But as far as I can gather, the Polish government has not confirmed an environmental consent within a three month required time-frame. So Prairie has launched a legal case against the Polish Dept of the Environment to secure its position.
Now, whenever court action is mentioned a lot of investors take fright and drop the shares. But there is talk that a Polish administrative department has simply not dealt with things within a time limit. Polish politicians will, after all, want the local jobs that Prairie will bring to coal mining. And Prairie reckons that its legal action will bring the possibility of a lost opportunity to the attention of local residents who may not be pleased by the delay.
We can’t predict the end of any legal case, where we don’t know all the facts. And taking on a government is rather daunting. But I will certainly not sell my shares until we know the outcome.
And now the Punter’s Return is open.
Link here to view the article on ShareProphets
Take a Look at Prairie and You Might See Greener Grass on the Other Side – Malcolm Stacey, ShareProphets
Hello Share Splurgers. The name Prairie Mining (PDZ) might give an impression that it’s a green company. Yet it deals in coal. But this coal is ideal for making coke, and from school days I think this is a cleaner alternative to the stuff we burned to keep the ‘frost flowers’ from the inside of our windows in the ‘fifties.
Since I bought into Prairie in December, the shares have risen from 30p to 39p. Which is up by about a third. Not bad. But I have grounds for believing that the jolly action isn’t over yet. Luckily, Prairie was one of my Shareprophets tips for 2018 and I continue to have great faith in this lot.
Coke is used to make steel. You’ll be aware that sales of steel, so depressed a few years ago, are making a comeback. It’s all this structural work being done by the emerging nations. As well as big projects in the developed world – including that big new rail plan here in Blighty. But that was known when I bought the share. What has given further impetus since then has been an RNS this month saying Prairie had been talking to a big polish miner called JSW. The idea was to co-operate, though this has yet to be confirmed.
According to rumours, JSW might even buy Prairie’s coke mine in Debiensko – it’s valued at £350 million, but there’s no firm word from Prairie on this story. And also China Coal is also interested in Prairie. Enough, it seems to order a bankable feasibility study – once again China helps to boost a share price.
I’ve not heard that either of Prairie’s two big mines are yet producing the black lumps in commercial quantities, but they will be doing that soon and, ok, investing in miners isn’t always hugely successful for private shareholders like us, but this one does seem to harbour the possibility of becoming a bagger of some kind (if all goes to plan).
And now to the coal fire in the Punter’s Return.
Link here to view the article on the ShareProphets website
Hello, Share Sweetners. I rarely bring a developing miner to your further scrutiny. I prefer to leave all that to my mining expert colleague Gary. Also, I’ve been burned quite a lot by disappointing mineral and metal finds in the past. But any road up, let’s have a look at this one.
Coal miner Prairie Mining (PDZ) seems to have a good chance of success in the next few years. Based in Perth, it focuses on Poland. The firm claims it could eventually have one of the most advanced coking operations ‘in the Northern Hemisphere.’
Coke is used heavily by the steel industry. And we all know, from plant closures in the UK, that steel-making is currently not the most profitable undertaking in the world. There’s too much competition, including interest from our friends in China.
But manufacturing, construction and heavy engineering all need steel, as does the car industry. So coke, which heats up the raw material, is always going to be in demand. Can you imagine, for example, how much steel will be needed for that new HS2 rail link?
Prairie has a coal project called Debiensko, which in January will start producing a slightly lower grade coking coal than that of its other site, Jan Karski. The Karski mine is set to start producing next year also.
Both locations are at the centre of industrial Europe and have excellent access to infrastructure. The reserves at both mines have been estimated at $3.3 billion. Which is big compared to the company’s present valuation. Though one should be aware that such estimates, especially in the mining game, can go wrong.
Prairie shares are now just over 30p. In March they were over 40p. This is not one of those mining shares which aims to serve a market which may not be all that big. Coke is vital for manufacturing. There are signs that the developing world, especially, is going to be making and building many more machines, buildings and heavy plant.
But, as with all miners, there just may be hidden snags along the way. And you should be aware of those risks.
As we all are in the Punter’s Return.
Link here to the article on the ShareProphets website
I am invested in a few companies that are fighting this scourge. One such outfit is Feedback (FDBK). This is a tiny Cambridge company (worth about £4m) which helps to diagnose cancer on computers.
Its product is Tex-Rad, a software system that spots medical abnormalities on scans. These features are not always spotted by doctors because they are so small. The advantage is obvious – cancers can be identified at a very early stage when they are most susceptible to treatment.
The professor behind the system tried it out on people with liver cancer and came up with results he describes as ‘quite remarkable’. Well, perhaps he would. But the fact is that the system interests hospitals in various parts of the world. Revenue is growing.
However, the stock is not very liquid and the spread can be eye-watering. I’ve held my stock a long time and am still slightly down.
The system has not yet received all the official go-ahead it needs. But it does expect to get a European licence. It hopes to get permissions in the first few months of 2017.
I think we may see a placing fairly soon to raise money to commercialise the product. But you have to expect that with very small companies which find something which is potentially big. Soon the company expects to announce a new product which looks for evidence of tumours in the lung.
This is probably not the safest punt in the world, but that is the nature of medical pioneers. And the rewards, both financial and the satisfaction of helping people who face serious ill-health, may be worth taking a risk for.
Free Xmas drinks in the Punter’s Return tonight. There is a charge for the glasses.
I should note that in September Uncle Tom commented on some negative feedback on Feedback, so you might want to also look at that also. See the full article here
It’s Him, TYM! Mining for Toothpaste and Telescopes and Possibly Worth a Punt – Malcolm Stacey, ShareProphets
Hello Share Swingers. A little miner called Tertiary Minerals (TYM) has graced my modest blog on Shareprophets before now. In the past, it’s been a big winner for me.
I well remember being at Tom’s pizza emporium helping to prepared hand-outs for the big 2014 UK investor Show when I spotted on my laptop that Tertiary shares had been moving ahead from 7p to 12p. I asked Tom’s advice – as one sensibly does when he is on the bridge – and he said sell ‘em.
(Well, I rather think he did, as we were both distracted at the time.) Anyway, just before the Stock Exchange closed and in the last day of the financial year, I hit the sell button. And that advice turned out to be very sound indeed.
Because after that, Tertiary Minerals hit a consistently downward slope. I bought some more when it hit about 6p, expecting the usual rally. But then came the commodities crisis, and most miners took that big hit, which remains with us to this day.
However, Tertiary Minerals has had good news of late and the share has been putting on weight. Of course, the share price is so low now, that I am still running at a loss on my second acquisition. But given the importance of what it produces – fluorspar – I rather think the upward splurge is not yet over. (Tom Winnifrith wrote recently that there could be another placing in the offing and therefore is not supportive.
Fluorspar is used for many applications, including iron smelting, steel and aluminium products, glass things. toothpaste, telescopes and Teflon which stops your eggs sticking to the frying pan.Tertiary Minerals (TYM) is the only listed fluorspar company based in the UK.
It has three sites where it hauls the stuff out of the ground. All mining shares have to be treated cautiously these days, but it seems that Tertiary has dug out a niche for itself.
The company issued a drilling update this week about its MB project in Nevada. The JORC (Joint Ore Reserves Committee) estimate for the site grew to 86.4 million tons last year. According to the management, the size of that deposit continues to grow.
The little miner also has two big projects in Scandinavia, and there was more bumper news this week when the Swedish authorities gave the green light for a mining operation in in that beautiful country.
Little of the potential of these projects seems to have found its way into the share price. We can’t live without Fluorspar, they tell me, so my Tertiary shares are staying in my bag for the time being.
While I’m staying in the Punter’s Return. God bless.
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Disclosure: I own shares in one or more of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Malcolm Stacey of ShareProphets – My First-Hand Check on Medical Opportunities As I End Up in Hospital. Ref. Feedback, Avacta & Advanced Oncotherapy
Hello Share Folk. I’m going to the hospital today to see about my prostate gland. I started the routine tests a few years ago and have been under the eye of a brilliant consultant ever since. There’s a lot of debate of whether we should have these tests done, as it causes a lot of anxiety and their reliability is not always that great. On the whole I would suggest you do have them done, if you’re of a certain age. But what do I know?
The visit to hospital confirms my view, though, that there one thing more important than the health of our shares – and that’s the health of us.
Your shares can drop like a lead-studded anvil down a coal shaft, but if we have good health, collapsing stocks are, in comparison, not in the least bit disturbing.
You can combine the two concerns of course by buying shares in companies, which push forward the frontiers of medical science. You may recall that I’ve invested big time in three life science firms – Feedback (FDBK) Avacta (AVCT) and Advanced Oncotherapy (AVO).
Now at first all three stocks shot ahead. But in recent months there has been a bit of decay going on.
This is not unexpected. Whenever you get a penny share, which looks really promising, there is an army of chancers out there who will take a punt just because the stock is rising like a discarded champagne cork from a submarine.
But when the momentum – usually set off by a single piece of good news for the company – winds down, the same army of opportunists sell again. This dumping continues until the next piece of good news.
In the case of all three aforementioned shares, the future outlook is no less rosier than when I first bout their prospects to your attention.
So I expect good news to keep spewing forth as the months, and indeed years, roll by. Then the army of chancers will turn up again and the share prices will hit mew highs once more. (Though I cannot be certain).
But I’m an optimist, as you know, so you must make up your own mind.
See you in the Punter’s Return tonight?
– See more at: http://www.shareprophets.com/views/16395/my-first-hand-check-on-medical-opportunities-as-i-end-up-in-hospital-ref-feedback-avacter-advanced-oncatherapy#sthash.ZYla6RsZ.dpuf
– See more at: http://www.shareprophets.com/views/15537/feedback-and-the-big-spanish-connection#sthash.d1mviXV7.dpuf