Archives: Questions And Answers
“Hi James & Harry, Just a quick comment on GameStop trading in US. To me it appears it seems OK for the small guy to lose money (over 100% of the stock was short sold – how is that even possible!). However, because the share price has now gone up, the small traders have now been prevented from buying (only able to sell). Therefore, who is left that are able to buy – only the big end of town. As short sellers, they would clearly have no interest in doing so. Therefore, with no buyers the share price will naturally fall. Can’t help being reminded of what a San Fran cable car driver told me shortly after GFC. “The most crooked street in US is not the one in San Fran – it is Wall street!” – George T.
“Morning James, Is there a ETF which covers emerging markets which covers more value stocks as opposed to growth stocks. Also is there a Green ETF which will cover the future climate change philosophy especially under the Biden Administration. Thanks” – Daniel C.
“Hi MM Team Can you please give me your current view on STA (Strandline Resources) and after their run up this week – LITHIUM STOCKS and in particular ORE (Orocobre).” – Regards Debbie G.
“Hello James et al, can you tell me what the problem is with Magellan (MFG). The company has one of the best in the business in Hamish Douglass steering the ship and yet the share price has fallen by ~24% since November?” – Cheers, Mick H.
“Your comments earlier this week about a possible takeover of ORI by WES is interesting. While it is highly possible I suspect it would have some ACCC difficulties. Such a takeover will result in 82% of the Aust Ammonium Nitrate (a critical component in the manufacture of commercial explosives) manufacturing capacity in the hands of one company. It would probably get pushback in some form by the ACCC as well as the mining industry.” – Colin H.
“Hi James and team, I was just wondering what your views are on Strategic Elements Ltd (asx: SOR). They have really taken off since October 2020 rallying over 750%. They operate as a venture builder specialising in the technology or resources sectors. Their most recent work on self-charging battery cells and the development of artificial synapses which could allow a brain-based system to achieve self-learning. In addition they are support from CSIRO and the Government who have registered them as a Pooled Development Fund which I see as a good sign for the future of the company. I have been watching them closely over the past few months and noticed their valuation from morning star continually increasing with the market. How do you put a value on a stock like this with such growth? And how do you think this strong early performance will play out in the short, medium and long term for this company. Lastly, how would you measure the risk involved with investing in a company such as SOR? Thanks for your time and look forward to hearing from you.” – Kind regards Nick S.
“Hi James and Harry. Following on from my email last week , Zip did hit your initial target of $8 following their impressive report . In fact early Friday they hit 8.48 and sadly quickly retreated as is customary with ZIP, closing at $7.23. A massive turnaround in anyone’s book. Your Friday morning report on ZIP did indicate a further 10% increase from Thursday’s close with potential more upside. Interestingly though you did not have an opinion or comment on ZIPs huge rise and fall in early Friday trade, ultimately closing 16 cents lower from Thursday closing price. If you can let us know your view on this it will be appreciated.” – Thanks and kind regards Errol K.
“HI James. Which are the worst months for the ASX. I’m prefer to trade when the ASX is on the upswing as I am averse to short trading” – Thanking you Indran.
“Hi MM, Can I please have a technical and fundamental opinion on NIC and SFR?” – Thank you Aaron W.
