Going Sideways and the Miraculins on Bay St.
“The difference between a hero and a coward is one step sideways.” — Gene Hackman
InvestorIntelReport: Many years ago, when I used to have to negotiate with teenagers – a memory, I have aptly forgotten; I recall one frustration that was remedied through repetition and reward. As anyone who has teens can attest to….decision making is not their forte. So while asking a simple question is usually not usually a challenge between two adults, with a teenager it can have all the drama of a life and death decision making process. To remedy this, I would always say: “I do not know” is an answer.
To this day, when someone answers with “I do not know”, I relax and breathe again. To me, the ability to not know is a greater strength than always having an answer. In my experience, many people in business simply tell you what they think you want to hear versus dealing with their perceptions of the related consequences of answering with what inevitably discovers — that they really have no idea.
When I ask investment leaders where they think we are headed in the market, I am hearing a lot of responses lead by — “I genuinely do not know.” Underscored with strong positions on “feels like we are going sideways.” The “sideways” line is what sticks in my mind, because for all of those still standing in the resource sector from 2014 markets, “sideways” is good…or so I am going to contend.
Remember the crime dramas when a witness “goes sideways”? This means the witness has changed their story, and the entire case is usually altered permanently. But what does this mean when a market goes sideways? A sideways trend “describes the horizontal price movement that occurs when the forces of supply and demand are nearly equal. A sideways trend is often regarded as a period of consolidation before the price continues in the direction of the previous move.”
Ah consolidations as I review Christopher Ecclestone’s report this AM on Mergers & Acquisitions, The Mining Predator’s Ball: Marriages Made in Heaven (or Hell)…the key here is remember that a “sideways trend” just like the answer “I do not know” — is n-o-t a static condition. What we currently have is a period of tension of equal energy of decision making. As such, we as self-directed investors out there in the market to get ready: as this will “break” eventually, and we should be ready…M&A’s, bankruptcies and — rising stars.
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Last week, InvestorIntel signed one of these stars to our roster — Miraculins Inc. Miraculins or $MOM.V was up +50% last week, and yes you read this right. Our Dr. Luc Duchesne did double time with a fascinating piece on how Miraculins brings CSI to diabetic testing. Explaining how simply placing your hand on this machine can tell you if you have diabetes, they were not alone in bucking the gravity pull, with Theralase Inc.’s $TLT.V up +48.65%. Theralase added two star players to their scientific board with Dr. Michael A. O’Donnell and Dr. Ashish M. Kamat. Of course, if you’re like me and you enjoy Dr. Duchesne’s ability to take complex biotechnology and make it intriguing and understandable to some of us investors who did not relish biochemistry in university, he translates the technology masterfully in: Theralase reaches cancer breakthrough, immunizes mice against cancer.
Out for what felt like every evening of the week with holiday receptions in full swing, I would like to award the team of Great Lakes Graphite Inc. (TSXV: GLK) who was up +12.50% for the week for having the most loyal shareholders of any company in the market. Seriously, I cannot stand in a crowd of investors on Bay St. without hearing people discuss Great Lakes…are they handing out t-shirts, or perhaps we should have Paul Gorman get back in here for a follow up interview and find out why?
Now onto the rare earths & technology metals sector where the leader was multi-commodity player Star Minerals, up +20% $SUV up +20% last week with their year-end results and an update on the Bear Gulch Placer Gold Operation. U.S. Rare Earths Inc. is right behind them for northbound action with $UREE up +11.90% on no news….as an aside, $UREE was at $1.41 at market open and is the highest price stock in the rare earth sector, after Alkane Resources’ $ANLKY at $1.84.
Speaking of Alkane, $ANLKY was up +6.94% last week as they are ready to seek government approval amid growing rare earth market optimism. And let’s not forget about Hasting Rare Metals as $HAS was up again +3.95% again last week as they raised $6.5mm for the Yangibana Project pre-feasibility study earlier this month.
We had Ryan Brown, CEO from GrowPros (CSE: MZO) in our office on Tuesday morning for an interview. With Mazorro Resources Inc. recently announcing the definitive amalgamation agreement with GrowPros MMP Inc., we have an example of a company that has gone ‘sideways’ for the benefit of their shareholders — $MZO up +6.25% last week. And catch Peter Clausi’s column on the do’s and don’t on investing in the “pot.com sector“, as he was in the Top 10 most read articles of the week.
On some miscellaneous fronts, I would like to formalize the fact that yes, the rumor is true. Chris Berry will be joining our star roster of Sr. Editors, and we will see his first column on Wednesday, December 17th and he tells me he is bull on lithium. This morning Jon Hykawy just posted a commentary on his most recent research report on long standing InvestorIntel client Arafura Resources titled “Arafura Initiation – The Magnet Source”, he places a AU$0.35 target price on $ARU.
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An accomplished entrepreneur and corporate finance professional, Tracy Weslosky is the CEO for InvestorIntel Corp. and the VP of Business Development for Bellotti Capital Partners ... <Read more about Tracy Weslosky>