Adam Davidson, CEO of Trident Royalties, discusses offtake milestones and catalysts to boost FY24. Watch the video here.
GLG increased their short on 2nd May. Ouch!
Trek
Simon 11:50….
“ I think this will temporarily go back down to 12-13p before it goes up to 20p. People will take their 20 odd per cent on opening tomorrow morning before getting back in on the dip. aimo of course.‘
Be interested what stimulated that thought process other than hoping to get in cheaper.
My thoughts are that the 2nd and 3rd of May were actually the two highest volumes days since listing. Here’s the source.
https://www.londonstockexchange.com/stock/HEX/helix-exploration-plc/trade-recap
If you download the data from the London Stock exchange you can actually see that a lot of trades were at the higher price. So imo those would be unlikely to take profits.
That leaves the earlier trades, they were all ‘O’ type trades. I would assume these are the Hereford concert party shares that have been put aside to fund the market following the tight IPO.
I base that judgement on page 38 of the listing document which you can read here.
https://wp-helix-2024.s3.eu-west-2.amazonaws.com/media/2024/04/Helix-Admission-document-final.pdf
I posted before about the one hour late prints. It is likely that the SP did not move up earlier because of a pool of stock that had to be cleared.
Another valuation point is based on peer analysis shown of page 13 of the prospectus that you can see here
https://wp-helix-2024.s3.eu-west-2.amazonaws.com/media/2024/04/Helix-Exploration-March-24-Final.pdf
It is my opinion that HEX is still significantly undervalued.
Whilst there are as yet no broker notes, not that I rate them, the peer analysis and HE1 comparison is about as good a benchmark as one can use at this stage. One then has to factor in the finance, 7.5m, tick.
The quality of the bod; Bo and battle scared Minchin are a formidable duo imo.
Then you have the political location USA and Montana which is regulatory friendly.
That’s before you even look at the geo which is a proven Helium faraway. Check out the Ryder Scott competent persons report. They come out with BS and they get sued in the USA big time!
But it’s the finance that’s key. Without that cash you have no right to expect SP growth.
So my little brain has assimilated this data and whilst accepting some trading bumpiness I do not think it will be a big profit taking day tomorrow.
Remember go short on finance and long on ops. I expect 30-40p range before spud and that’s being conservative. Based on interviews I expect a deal before then to support the expo as well. That could be a massive left field sp driver.
Oh I took a huge amount of profit on 2 from 3 visits to HE1. I only lost a small amount on one trade. The first paid for one of the kids house deposits to the tune of 50%. The second went to my income pot as I manage our pensions.
Think i’ll follow my own advice.
Thanks.
Usual caveats
Trek
It ain’t looking good in Ukraine. DW can’t even spin it!
If Russian get that high ground they can build from there.
Imo NATO should stop pssing about and impose a no fly zone east of the river.
https://www.youtube.com/watch?v=0T0tFoendwQ
Trek
Also US jobs report came out way before the rise. Don think it’s that either.
Could be a combo of us jobs, Fed dovishness, broker note and some published media rumour.
Seems a bit much for just oversold as well at least in this one session!
Still +10% yield though!
Guess we’ll find out soon enough!
Usual caveats
Trek
Don’t think this is the early redemption. Market didn’t react when RNS was posted.
Remember when there were takeover rumours with MNG (I hold). I said then that PHNx would be the likely target. It doesn’t have the AUM flow issues. It’s a lift and shift and rebrand. Just like we have done with likes of standard life. Very straightforward.
I also explained the huge cost savings to be had here from AI. I don’t think the market has got anywhere near appreciating that.
The AI bots using voice recognition and intuitive searches and questioning plus written responses are proving better than humans. It’s why solicitors are also terrified. I mean come on there is really not much to basic conveyancing outside pooling and reviewing data.
The solicitors just deal with complex stuff and system generated alerts.
I have worked with this tech and can see its potential. We really are on the cusp of another digital revolution!
These comps will soon be significantly reducing their overheads using AI.
Usual caveats
Trek
They don’t need to build a plant to sell helium. They will likely use a modular plant in parallel to capture and sell molecules.
Usual caveats.
Trek
It’s amazing isn’t it that a 40p sp is only 50m mcap!
Still cheap for potentially unlocking 2.3 bcf of value!
For the watchers of google finance that note the spikes down today remember that google finance plots the last trade as its price. So if a delayed print goes through at a lower price, even if it’s 1 share, that is the price captured on google finance. With an obvious short delay.
At the end of day it uses the last trade price not the UT price which is actually pickled up here at least by the LSE ALGO assuming there is one.
Hence, the only way to gauge price is to run a dummy trade. That is even more accurate than using level 2.
Hence it’s always worth keeping a few quid in cash in your trading accounts. So you can run a dummy trade and see what the best price is at that time for a stock.
Have a nice weekend all.
Trek
US jobs out way below expectations. Expect market bounce!
Trek
And them wells have value for CCS. Must say until I read this I didn’t appreciate the potential!
https://theoakbloke.substack.com/p/dec-iphering-pipe-dreams
Trek
I posted yesterday about the one hour delayed prints for 100k trades. Note there are none today.
Just smaller 1hour delayed prints. The round number ones are likely the residue of the Hereford concert party’s mandatory orderly sell. That also incidentally coincides with the slight tick up in SP.
Pretty much looks like it now. Should have an orderly market with the overwhelming balance of investors being hold.
As there is such a small free float the sp will move disproportionately either way. Hence the focus should be mcap, news and timeline.
The MM’s will very likely shake this about to get stock to trade so expect a bit of volatility but the overall price trajectory should be north.
Usual caveats
Trek
I wouldn’t pay too much attention to the SP if you are buying. It’s the mcap that is key else you can get put off by a rise. For sure I am not saying ignore it.
Imo you should look at the 20m mcap and a crack at 2.3bcf of gas funded for 3 drills and the price points along the timeline. That imo affords a better value guage. Especially if you intend to hold some for the drill.
Folk are not overstating 60p. That’s only around 75m mcap. If they find commercial helium, which is a good chance, see my post below, then the SP could well be into the pound.
I also don’t think they will follow a dilutive funding option if things go to plan. If there are snags then that’s different but if this plays out why would you need to dilute holders. The bod have already stated their intent to avoid dilution.
There will be plenty of alternative funding options on a successful drill. Hence, even if folk intend to buy early and derisk along the way or even just have a possible 10 bagger spin on the drill. It’s defo worth having a longer term position in here because it’s all gonna happen so quickly!
Usual caveats
Trek
Hi Jungmana,
I don’t use Twitter, too many tweets make a twt and no fan of Elon! But thanks for sharing!
I actually hadn’t read the Zak Mir post before. Read flipping loads of other stuff though!
Excellent summary. And I note he picks up on the. ‘Chips Act’ which is a very understated point imo. Esp against the back drop of DOE investments in lithium mines in USA with Ford and also DOE securing Graphite from abroad.
No reason not to assume Helium will be on shored as well and that could mean access to govt funds as well as corporate funding for security of supply from the likes of SpaceX, intel etc…
“ The company’s potential lies in its helium exploration and development projects in Montana, USA, with plans to become a key helium producer. Helix controls 52 leases in the “Montana Helium Fairway,” featuring promising geological formations and a substantial P50 resource estimate of 2.3 billion cubic feet. Past drilling has confirmed the presence of gas across all targeted layers.
Given the severe shortage and increasing demand for helium, especially in high-tech sectors, Helix’s venture is timely.
The CHIPS act, promoting U.S. chip manufacturing with US$39 billion in incentives, is expected to further boost domestic helium demand, crucial in semiconductor production.
David Minchin, the chairman, emphasizes the significance of the CHIPS act and the advantageous timing and location of their operations.”
Usual caveats
Trek
Road - suspension lifted. Results published and they got xtra from CSS 7.5m is now on account in cash! Plus they did a debt refinance package earlier.
Could see a nice rise back up there.
HEX…. I am just doing a jig! Went in super big for me for a stock that don’t pay a divi! At this rate could soon be my top holding! Yikes! My tp’s are 22p and 30p both very achievable over the coming months and obviously I will sell down to a sensible level. Never pretended to do otherwise.
I will defo leave some in HEX as they already have helium shows at multiple levels and the two guys running the ops have done it many times before as have the rig and crew also found and flowed helium before. Funded for 3 drills and appraisel. As it’s in Montana spares and crew etc are not an issue.
In in time to sell into the newsflow that has been clearly set out in advance oh and directors are locked in at 10p for a year!
Iqai - I only have a few left now. Took a +50% hit and chucked it into HEX! Sold TRR + PAF both great finds and I will buy back but used that and others to fund HEX. When you have an itch scratch it!
Usual caveats
Trek
Previously, CGV had agreed to purchase 952 shares in CSS at £6,302.53 per share, it has now agreed to purchase 1,000 shares at £7,500.00 per share, increasing the total consideration due to Roadside to £7.5 million.
The Company is pleased to confirm that the £7.5 million consideration has been received by Roadside and is on account.
Trek
I see this BB is as useless as usual regarding DEC so just as well talk about anything!
Hi GG…
I gave ya a tip to buy HEX recently at 10.5p. I figured if you were allowed to spend some pocket money that might temper your acidity!
Since you thought I was FOS. I figured it was a fair challenge to show I know what I am doing ‘overall’ coz I do get some wrong! Thankfully though having ….. nah I don’t need to go there, no one believes it anyhow!
Well moving on I actually have more in monetary value in HEX now than in here! lol!
And I ain’t selling HEX yet as it’s just got going!
Don’t worry though I will do my thing and start selling from a double and a treble and then tip the profits into boring old income plays just like Dec that incidentally plays like a fiddle! lol!
And I am pretty sure anyone in HEX from around 15p with a bit of patience will then have the opportunity of a free carry leaving no worries if if goes bust or ballistic!
So there ya have it!
I have ya a freebie and for all your knowledge you passed on a once in a 3 year trade. That’s my experience of HEX hence I have gone in big!
Check my posts there and on Tecan and read the HEX listing document. It’s a rare opportunity!
Folk pay the likes of IC and tip sheets a fortune for a find like that and I have given it away like free cinema tickets!
You just gotta decide to look at some other ratings, book a seat or buy the box set! lol!
Go figure…
Usual caveats
Trek
22/4/24 17:30…
“ Oh I ain’t going to over ramp it. But I think I have earnt the right to post one here.
Check out HEX, a US helium play. Just IPO’d. I know there are some geo knowledgeable investors here that can figure it out for themselves but you may not have heard of it. A home for some change!”
Could have had em for 10.5p when I posted here. On the move now!
I put more in there than I have invested in here! So still got me mojo….just ffs!
Good luck
Usual caveats
Trek
Order went through to clear out some more here. Thought we already had an expanded EAP. cBA’d to look back anymore!
I put all the dregs from what I sold here into HEX. With the extras I put in I have recouped my losses on paper at least already!
So happy as I was thinking I had lost my mojo!
Just have a fraction of my original position in here now. Took a +50% loss!
10p ish will do with my small remaining holding. I do think that that is still possible. So I wouldn’t advise folk selling but I would advise super duper extra caution here….
See page 21 of the annual report. Now there’s a yardstick!
Dialogue with major shareholders…
The company places considerable importance on communication with shareholders. Discussions take place with major shareholders with the companies delegating authority to the chairman and chief executive to present the strategy and financial results of the group.
Major shareholders = self or nominees!
Where’s the communications from the chief executive with nominee shareholder accounts so you and I!. I mean it’s apparently of considerable importance!
There’s loads of recycled BS like that in this AR! Just like the last EAP RNS, the market did eventually clock it!
So if the BoD takes keeping shareholders informed seriously. Go search for the last Trevor Brown interview on proactive, diretors tlk, crux etc. fk all!
https://www.iqai.ltd/wpiqai/wp-content/uploads/2024/04/2023-12-31-IQ-AI-Annual-Report.pdf
I still think there’s a chance here but not imo for any new money.
I have always said this is a punt with a realistic moonshot opportunity. That may still be the case but atm I think I have been hoodwinked and I should have known better. And I could now buy my sells back on average cheaper if I so choose. But not on your nelly! Not until TB at least steps down!
Trek
Legal 16:53 post…
One of the most sensible post I have read here today. No wonder ya only got 3 ticks lol!.
Mind you the Co-op have some specials on atm!
Perhaps if you and Jungmana get together you could have enough for the pizza and beer offer! lol!
I’ve ticked you both up for saving folk from themselves!
My fam think it’s hilarious that I got ‘a like!’….
Anyways hard bit nearly done now. Just case of watching the clock!
Usual caveats
Trek
So there ya go. Back from a round of golf. Played crap by the way, after such a good run. I just don’t get it! 79 to 88! No reason!
Anyways I called a 1p rise in a day here then a 2p day. Even got that wrong! Gone straight to +2p! lol!
I note now the 250k late prints have come through. That explains the auction this morning when it was NT and I was trying to add. I reckon that’s the clear out.
Note that every trade today was an ‘O’ type so no fking about you get what you see!
Well that’s me done now. Sat with for me a ‘big’ position and at last a nice cushion. My next trade will probably be a sell. So I don’t wanna upset folk and the one after that will probably be a buy! lol!
Now handing over to the Helium experts, the geo’s and the marketing experts! That’s the next set of drivers here imo!
Short on finance long on ops.
The season of ops is now upon us!
And those aforementioned folks will know the next price drivers better than I! Mine is a different criterion from here on!
Ps Welcome all the newbies! You are still in early imo!
Use any pullbacks to buy. There’s a long way to go with this one. It’s just starting imo!
Usual caveats
Trek
Tick tock …
It’s close….
https://www.visualcapitalist.com/charted-which-country-has-the-most-billionaires-in-2024/
Trek