Whoop-de- do!
The Punter’s latest tip almost doubled in a week.
Silly boy bought only 100,000 shares in a would-be bauxite miner almost no one had heard of.
Should have bought a quarter of a million, and would have done so if his foresight had been up to hindsight standards.
Queensland Bauxite (ASX code QBL) is not, of course, being bought on the strength of future sales of aluminium. It is all about its purchase of 55 per cent of an emerging medical cannabis producer, Medial Cannabis Ltd.
Within hours of the Punter deciding to take a timid $1,220 stake in QBL, Medical Cannabis announced that the NSW Department of Primary Industries had granted it a licence to grow a selection of its cannabis varieties indoors.
Moreover, it intends to publicly display its work at the Sydney Hemp Health and Innovation Expo on May 28 at the Rosehill Racecourse. QBL shares went up like an Apollo spacecraft.
QBL and the Medical Cannabis claims of being “the only company with current exposure to the ASX to have achieved such licences and approvals in Australia” may have put AusCann’s nose slightly out of joint. Auscann (AC8) was the Punter’s first big cannabis hit, but its share dropped 20 per cent in a week.
The Punter’s Auscann shares are still worth three times what he paid for them.
The Punter’s AC8 shares are still worth three times what he paid for them, so the drop in the price is probably also due to some short-term profit-taking. As he has only 5000 shares, he has decided not to sell half at this stage.
He has also resisted the temptation to sell half his QBL, hoping this market darling might double again before market sentiment switches to the next big thing.
That next big thing might be cobalt, another key ingredient in lithium-ion batteries. But while lithium prices are up about a third in a year, cobalt prices have doubled since August.
Cobalt Blue (COB) which had a very successful debut to the stock market last month, has been added to the Punter’s watchlist.
Meanwhile, he continues to regret selling TasFoods (TFL) at its 13c low for the year. Trading in the stock is very thin, but with Jan Cameron of Bellamy fame hovering in the background, TFL is still definitely on his watchlist.
• The Punter has no financial qualifications and no links to the financial services industry. He owns shares in a number of these companies.
