ALIGN RESEARCH29 Apr 2019 10:56
AR were upbeat on WSN
1. Wishbone Gold – current price 0.14p
We have gotten rather excited by Wishbone Gold (WSBN) in recent weeks following the balance sheet recapitalisation and the long awaited Honduras licensing deal. See HERE for our full commentary in relation to this.
At the current market cap of £2.5m the hangover from the RiverFort death spiral financing that decimated the stock price during 2017 and 2018 continues to cast a pall over the shares in our opinion. This of course provides opportunity for buyers and we suspect that WSBN will prove to be one of the key performers in our portfolio during 2019. Sentiment is now turning in favour of gold and after 5 years of underperformance. WSBN provides for a much smarter way to gain exposure to this cycle upswing.
With Richard Poulden holding a material stake in the company he has every incentive to take what is at present a de facto shell valuation into a proper company. Discussions with him in recent weeks lead us to believe that he is laser focused in delivering transformative returns here for shareholders over the next few years and, at the current price of 0.14p, we remain active buyers and are fully on board on this story. Per our full note HERE our first target is 0.589p but subject to delivery this year we believe the story can run much further. Buy.
To conclude, from experience it is precisely from these deep, dark market environments that we are, sadly, presently immersed in, that the most explosive stock returns are germinated. The reason is simple – the pendulum between greed and fear gets stretched too far and the snap back is violent. We have thus attempted here to pick the 10 small cap stocks that we cover from a research perspective that we feel offer the most upside to investors as this deep small cap bear market plays out its final act. We are positioned accordingly.
Sign In
Follow the stocks
