Shooting from the hip - topical, informed and opinionated posts each & every day!
Take a good look at the chart below. It is probably one of the best proxies for the global natural resources sector that there is.
Notice anything? Now take a look a look at the investor sentiment cycle chart below too…
Notice any similarities between the two?
Time will tell if our belief here at Titan that we are in the nascent stages of a bull market for Precious Metals and Resource stocks is correct. However, even with only a modest rise in gold and silver and the stocks that are exposed to these this year, investors in our funds at the start of the year have done very well with us. See the YTD returns table below for our Natural Resources & Precious Metals funds.
Make sure you read the next edition of Spreadbet Magazine which is out next week for a testimonials roundup from some of our early stage fund investors.
Our funds currently have a special offer during July and August of NO initial fee. At Titan we invest alongside you and are predominantly remunerated through generating absolute returns. Best of all, you don’t have to sit through a “seminar” that costs thousands (& where you can get the same info for a tenner buying a technical analysis book by the way) or buy share “tips” for a fiver, tenner or whatever a month and where the “tipster” has zero accountability to you.
CLICK THE BANNER BELOW TO LEARN MORE ABOUT OUR UNIQUE APPROACH TO FUND MANAGEMENT OR EMAIL US AT INFO@TITANIP.CO.UK
Past performance is not necessarily a guide to the future and you should always take independent advice in relation to your own personal circumstances.
CLICK THE IMAGE BELOW TO VIEW TODAY’S VIDEO
Spreadbet Magazine editor Zak Mir takes a look at the technical position of some of the bulletin board stocks of the moment amongst private investors.
Here are the key points from today’s video:
African Potash (AFPO)
Likely imminent extended bull flag breakout through 4p.
Implied top of December 2012 price channel target of 6p.
Stop loss on bull argument is currently an end of day close back below the 50 day moving average at 3.27p.
Likely bull flag consolidation after recent sharp July gains.
Above 10 day moving average / December price channel floor at 8.5p suggests current mid move consolidation.
Target towards top of December price channel top at 18p on a 1-2 month timeframe.
Sound Oil (SOU)
March price channel based at the 50 day moving average, which is at 10.53p currently.
Rising trend channel target as high as 18p on a one month timeframe.
Break of the 12.84p early July resistance should be buy trigger.
Xcite Energy (XEL)
Extended and frustrating post March consolidation in the 60ps.
End of week close above the 50 day moving average hints at a fresh rally.
Return to June resistance in mid 70ps followed by a 200 day moving average test at 87p is anticipated while March the support line at 65p is held.
CLICK THE IMAGE BELOW TO GET ZAK’S TOP 5 CURRENCY PICKS FOR 2H 2014
I was fortunate enough to spend some delicious time on the Isle of Wight last week. It’s only a short hop over the sea from Southampton, but it’s unlike anything on the mainland. I think the last two decades passed it by. I believe they refer to us tourist “grockles” as “big islanders”.
It’s got marvelous beaches, great walks, but the local food is to die for. It grows the best garlic in the world, the ice-cream is superb, the local beef melts in the mouth, the cheese is… well you get the picture.
My favourite Wight treat is Lobster. Delicious local ones caught just off the shores. So in three days I had three lobsters in very different places ranging from posh, tourist pub to a beach hut. The funny thing is, they were all excellent, and all cost about the same.. which from an economic perspective surprised me.
Lobster 1 was in an historic hotel. It’s recently been refurbished to the highest standards and a Michelin chef taken charge of the kitchens. That man knows how to get the best from a lobster. It was superb, a real fine-dining experience, and cost a very modest £30.00 in one of the most palatial dining rooms on the island, fawned upon by liveried staff.
Lobster 2 was almost as good, cost about £30 and was in a beach-hut café right by a beach with a great view. Lots of tables, lots of happy smiley staff, great throughput and lashings of cheap rose wine.
Lobster 3 was in a noisy pub, full of coach-load tourists ordering lobsters for lunch. It was an equally excellent crustacean, but eating a £30 lobster with a pint next to a cliff-top coach park lacked the cachet of the other places.
Got me wondering… how does place number one, the hotel, make any profit? Their throughput was a fraction of the others, yet must have been the most expensive in terms of kitchen staff, waiting staff, fixed costs etc? The third was almost the McDonalds of lobsters with an industrial production conveying them to the punters – and it felt like it. Meanwhile, the beach-hut was overall the best in terms of total enjoyment because the combo of view, the enthusiastic staff and we certainly drank most there…
I guess I shall never understand the economics of dining. But that’s what makes one investment more attractive than another – a clear understanding of all the factors that make one more profitable than another.
Which brings me on to my concerns about which of these establishments has longevity? How long will the beach-hut, with its clientele of well-heeled yummy mummies, continue to see folk flocking to it? The lobster pub has been there for years and is an established part of every bus tour round the Island. The hotel benefits from the occasional oligarch parking his yacht outside.
One factor is demand. If the yummy-mummy and Parsons Green young family brigades feel the pinch from higher-rates and their soaring credit card balances, then the beach-hut might not be so full next summer. I suspect it would take a more than a modest recession to calm demand at the pub. The first signs of concern for the beach-hut might be visible in London house prices where we are finally seeing signs of weakness. The Bank of England warning of rate rises to come won’t help.
Next week – back to some serious investment thinking. In terms of trade of the week? Well I’d say lobster and chips with a bottle of rose gets my money every time…
National Grid (NG.) - has started the year well and expects to grow its regulated assets by approximately 5% during 2014/15, in line with previous guidance.
Aberdeen Asset Management (ADN) - assets under management as at 30th June 2014 totalled £322.5 billion, a 0.6% decrease from 31st March 2014.
Reckitt Benckiser (RB.) - reported operating profits up by 30% at £1.06 billion in the six months to June, dividend flat at 60p per share.
Petra Diamonds (PDL) - Production up 17% to 3,110,823 carats in the year to June, above market guidance of 3 million carats.
Cranswick (CWK) - Trading so far in the current financial year has been in line with expectations. Revenue in the three months to 30th June was up by 5% reflecting continued growth across most product categories.
Pace (PIC) - Profit after tax up 9.3% to $55.4 million in the six months to June, dividend up by 23% at 2.25 cents per share.
K3 Business Technology (KBT) - has bought Retail Technology, the Microsoft Dynamics based EPOS provider to smaller retailers, for a total consideration of £0.61 million cash in addition to the existing cash in the business at completion.
Tristel (TSTL) - enjoyed a strong second half performance which has led to a fifth profit upgrade this financial year. Results for the year ended 30th June 2014 will show revenues and pre-tax profit ahead of expectations that were last updated in June.
Waterlogic (WTL) - as delivered a strong financial performance for the six months to June, with revenues at approximately $68.6 million.
Stadium Group (SDM) - acquires United Wireless, a specialist in the design and manufacture of electronics for the machine-to-machine (M2M) wireless sector, for a maximum total consideration of £8 million in cash and shares.
Aeorema Communications (AEO) - confirms that profits before taxation will be not less than market expectations for the year to June. The company has undertaken a number of high profile events this year including the first of its three year contract at Cannes Lions. Aeorema has also extended and won new roster positions in the financial services industry.
Pic du jour - I guess this is the physical manifestation of a man that refuses to heed the lessons of history!