Tips of the Year 2021 Review
Overall, a fairly pleasing performance from the constituents of the 2021 Tips of the year, although there have been some wild contrasts in the performance. Let’s take a zoom in look at a few of them! (See link to the Top Tips of 2021 at the end.)
Atalaya mining - One of the top performers in the portfolio, buoyed by a high copper price and strong results from the projects and pleasing financial results and sent the shares rocketing by over 35% not to mention the inaugural dividend of 29p. The company will be aiming to place 30% - 50% of their cash flow into dividends making it an attractive income as well as growth stock. Am happy to keep my Strong Buy recommendation and maintain my 1000p price target.
ASOS - Not what I was expecting! Shares have collapsed by over 50% as a result of a profit warning along with various other issues. Has given back all of its lockdown gains and more quite similar to other lockdown darlings such as Zoom, Peloton, AO World. CEO has left and another director has sold a lot of shares recently, which is a real red flag. Fortunately, the company is in a market leading position and shares do look cheap so I will (very gingerly) keep my buy recommendation.
Hunting - Made quite a disappointing start, especially given that the oil price has surged, but since then has more than recovered and in them last months has been one of the top performers on the market.
Avon protection - Another disaster, more disappointing news have sent the shares plummeting again, meaning that they are at a huge discount compared to the entry to the tips of the year, let alone their all time high, am willing to keep my buy recommendation given the cheap valuation.
Shell - Have now changed their name, but this has not deterred their massive share price gain, especially pleasing given that it is a large cap. Although the valuation has now become more demanding, so perhaps time to take some profits.
AMD - Started very strongly and was the top performer with gains of nearly +50%, since then has drifted down, but still remains +10% from the entry into the portfolio. Still am happy to keep my long term buy recommendation.
Savannah resources - A speculative small cap miner, most of which is lithium. One of the top performers, but has given back a few of its gains recently as a result of a lawsuit. By the looks of it, although it is wise to be cautious, the risks posed from the lawsuit should not be too damaging or dangerous. Am willing to maintain a speculative strong buy recommendation given the huge discount to the net present value of its lithium mine alone. A market cap of under £75 million seems a bargain compared to the net present value of the lithium one which is around 180 million euros. Whilst, this is slightly dated, this should not be much of an issue due to the fact that as time goes on the net present value increases and the lithium price has surged. 180 million euros (or I believe 181 million euros is the NPV to be accurate) > £150 million (exchange rate 1 pound to 1.2 euros). The payback on the mine is also quick at around 2.6 years and the company also has cash along with other assets. So whilst having a single developing mine and litigation issues does pose some risks the positives far outweigh the negatives. SPECULATIVE STRONG BUY.
Atalaya mining - One of the top performers in the portfolio, buoyed by a high copper price and strong results from the projects and pleasing financial results and sent the shares rocketing by over 35% not to mention the inaugural dividend of 29p. The company will be aiming to place 30% - 50% of their cash flow into dividends making it an attractive income as well as growth stock. Am happy to keep my Strong Buy recommendation and maintain my 1000p price target.
ASOS - Not what I was expecting! Shares have collapsed by over 50% as a result of a profit warning along with various other issues. Has given back all of its lockdown gains and more quite similar to other lockdown darlings such as Zoom, Peloton, AO World. CEO has left and another director has sold a lot of shares recently, which is a real red flag. Fortunately, the company is in a market leading position and shares do look cheap so I will (very gingerly) keep my buy recommendation.
Hunting - Made quite a disappointing start, especially given that the oil price has surged, but since then has more than recovered and in them last months has been one of the top performers on the market.
Avon protection - Another disaster, more disappointing news have sent the shares plummeting again, meaning that they are at a huge discount compared to the entry to the tips of the year, let alone their all time high, am willing to keep my buy recommendation given the cheap valuation.
Shell - Have now changed their name, but this has not deterred their massive share price gain, especially pleasing given that it is a large cap. Although the valuation has now become more demanding, so perhaps time to take some profits.
AMD - Started very strongly and was the top performer with gains of nearly +50%, since then has drifted down, but still remains +10% from the entry into the portfolio. Still am happy to keep my long term buy recommendation.
Savannah resources - A speculative small cap miner, most of which is lithium. One of the top performers, but has given back a few of its gains recently as a result of a lawsuit. By the looks of it, although it is wise to be cautious, the risks posed from the lawsuit should not be too damaging or dangerous. Am willing to maintain a speculative strong buy recommendation given the huge discount to the net present value of its lithium mine alone. A market cap of under £75 million seems a bargain compared to the net present value of the lithium one which is around 180 million euros. Whilst, this is slightly dated, this should not be much of an issue due to the fact that as time goes on the net present value increases and the lithium price has surged. 180 million euros (or I believe 181 million euros is the NPV to be accurate) > £150 million (exchange rate 1 pound to 1.2 euros). The payback on the mine is also quick at around 2.6 years and the company also has cash along with other assets. So whilst having a single developing mine and litigation issues does pose some risks the positives far outweigh the negatives. SPECULATIVE STRONG BUY.
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