r/WallStreetBets and the Stock Market

 Introduction

Last week, we saw 'Wallstreetbets', a community of investors shake the stock market by purchasing shares from failing US companies, forcing the share price to rocket. The community collaborated on the online message board site Reddit before simultaneously purchasing stocks from companies such as Gamestop, Nokia and Blackberry on the brink of liquidation, causing the share price to increase. 

Meanwhile, experienced stock market traders were losing significant amounts of money as they had effectively been betting that these companies would collapse. These investors were using a trading method called 'shorting'. 

The Reddit community have taken the stance that short selling is immoral and should not be permitted and found that boosting the share price of particular companies by purchasing shares in an organised time frame, the short sellers would not be able to profit, and in fact have to pay for the share price increase, potentially bankrupting some investors. This market strategy is known as a "short squeeze".

What is Shorting?

Shorting or short-selling is a method that investors use to bet on a companies share price will fall. Investors will borrow shares from a broker to sell in the market and if the price drops, they buy the shares back and keep the difference in price. On the contrary, if the share price increases, the investor must pay the difference in price. 

What does this mean?
As the share price sky rocketed, due to the demand of the likeminded investors purchasing the shares of the companies that experienced traders were convinced that the share price would drop, these investors are now required to pay the difference as required under the conditions of short selling.
This has publicised the short selling methodology and has raised ethical concerns as to how people should be permitted to profit from a company failing. The effects that this has had on the US Stock Market is likely to trigger an investigation or change of practices as a response.

Should we be worried?
Unless you are short selling, the simple answer is no. Not yet. These is some evidence to say that the events from the United States of America are being mimicked in the United Kingdom with some companies such as Cineworld but the 24% gain is little in comparison to Gamestop. Investors may want to consider creating limit orders to protect their investments as the market is likely to change rapidly should this offensive attack on short sellers become practiced on the UK stock market. Sell out at a price your happy with rather than being greedy and getting caught on the downward trend.

Automatic purchases and sells appear to continue to be processed even if the trading platform ceases activity due to the rapid changes. 

What happens next?
The primary targets for Monday 1st February 2021 appear to be AMC Entertainment Holdings Limited (NYSE:AMC), Gamestop Corp (NYSE:GME), Nokia Oyj (NYSE:NOK) and Blackberry (NYSE:BB) but the list is extensive. The Wallstreetbets group are also targeting the price of silver as it is believed that price of gold and silver is being manipulated to cover the real rate of inflation.

With the rush on purchasing shares in AMC Entertainment Holdings, there is a chance that Amur Minerals will see a spare price increase due to the similar abbreviations (NYSE:AMC) vs (LON:AMC) causing some confusion.
The potential UK companies that have been mentioned are Cineworld (LON:CINE), other likely candidates are those that have suffered harshly due to the COVID-19 pandemic and enforced closures of businesses to reduce the spread of the virus. 

Eddie Stobart Logistics Plc

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What to expect in the Stock Market over the next few weeks

The stock market was the centre of mass media coverage last week with GameStop shares frenzy. We at Bull & Bear strongly believe that this coverage has encouraged a mass of new, keen investors into the stock market. For the honest and willing new investors, we welcome you. But the actions and the media coverage have also disrupted the normal trends and trust that a stock market required in order to gain momentum. We were all reminded as to how volatile and unpredictable stock trading can be.

Almost all of our watchlist suffered losses and we hope that, as the dust begins to settle, trust can be restored and our shares can once again increase to their rightful value. What we can expect is a thorough investigation into the morality of short-selling and potentially changes made to the trading market as we know it. 

New Investors may benefit from Bull and Bear Invest Channel's 'Understanding the Stock Market' tuition videos that are in production and being uploaded to our YouTube Channel. Be sure to subscribe so that you don't miss a thing!

Here are a few highlights from our watchlist that would like to share with you:

 Eurasia Mining PLC (LON:EUA)

Eurasia took a nose dive to £0.15p on Wednesday 27th January 2021 as Alexei Churakov sold 27,400,000 ordinary shares to 'cover an urgent and critical cash call'. Eurasia managed to creep back up and settle at £0.24 to end the week. 

Eurasia confirm that the Company and the team of professional advisors continue to work on the Formal Sale Process and the operations are ongoing with the DFS for West Kytlim which was recently approved on 21st January 2021. 

The development of the sale of Eurasia Mining has been kept secret due to a non-disclosure order which has made it incredibly difficult to obtain facts, resulting in a multitude of rumours that cannot be fully substantiated, but we all hope that sale is concluded sometime soon and for the respective appropriate price.

Thor Mining (LON:THR)

Thor Mining have published the Quarterly Report October - December 2020 and it makes a very interesting read. They have also highlighted the next steps they expect to conclude in Q1 of 2021. Thor is expected to be releasing a large quantity of updates during Q1 regarding the drilling programmes, ISR test work and securing project investments. 

Bull & Bear's presentation on Thor Mining explains the concept of In Situ Recovery and the benefits it has in comparison to the standard mining methods. 

Rambler Mining & Metals (LON:RMM)

Rambler closed the week at a low £0.335 despite the Copper Production Results issued on 26th January 2021. Rambler boasts about being able to remain operational during the COVID-19 pandemic due to robust measures in place to identify and manage any occurrences of infection.

Rambler have been very quiet recently on the news front but we are yet to see confirmation that the proposed transaction involving the sale of the Nugget Pond Gold Plant is concluded. We are expecting this to be concluded during Q1 of 2021. The sale of the Nugget Pond Gold Plant will provide Rambler with US$2.0m cash and C£0.5m in common shares of Maritime Resources Corp.

Argo Blockchain LTD (LON:ARB)

Argo Blockchain announced that 1295 new mining machines were in production on Friday 29th January 2021. The RNS expressed the Company's intentions and a further 10,000 new machines are on order and are expected to be delivered during Q1 and Q2 of 2021. 
Collectively, these additional machines will raise Argo Blockchain's mining power to 1,685 petahash!
Bitcoin saw a brief 16.14% increase on Friday and this can only mean good news for the company who are mining it!

We are keen to see the developments with Argo Blockchain as the year continues.

Eddie Stobart Logistics Plc (LON:ESL)

We are awaiting the time that Eddie Stobart Logistics Plc is renamed to "Logistics Development Group Plc" We know that this is expected to happen before February 28th 2021. This move is to represent a change in business strategy and delineate from the Eddie Stobart business. We are expecting this change to be represented in the media with mass coverage. 

I would expect Logistics Development Group to use this opportunity to announce further business opportunities and strategies in order to create firm foundations for the renamed Company to progress forward.

Not to be confused with Stobart Group (LON:STOB) who are also changing their name to "Eskew Limited", as we understand, for a similar reason. 

Bull & Bear Invest Channel are not liable for any losses incurred for actions taken based on the content written. Although the greatest care is given to ensure that accurate data is provided, you must always conduct your own research when investing. 

1.1 A Beginners Guide to the Stock Market

 Bull and Bear Invest Channel have put together a Beginners Guide to the Stock Market as an introduction to a 'Understanding the Stock Market' series of coaching videos. 

This guide explains some key differences, introduces the stock market and some important details that should be taken into account before starting your investing journey. 

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Argo Blockchain Plc

 Bull & Bear Invest explain the concept of Bitcoin mining as we look at the future prospects of Argo Blockchain Plc

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Amur Minerals

 

Bull and Bear take a quick look into pending news materialising with Amur Mineral (AMC)

The highlights:
We are awaiting confirmation that the Bankable Feasibility Study (Aka Definitive Feasibility Study) to be submitted. Further work is required prior to submission, however Amur Minerals intends on having this completed during Q1 of 2021.

If the content of this video was helpful, please subscribe to our channel!

Eurasia's share price recovery & sale update

 As we were expecting, an RNS landed at 07:00 this morning from Eurasia Mining Plc regarding the "adverse movement in the Company's share price." 

They confirm that the RNS that disturbed a countless number of investors was reported by Alexei Churokov himself. Eurasia had received no notification of the the trade prior to this RNS being released. 

Eurasia confirm that they remain focused and continue to work on the Formal Sale Process and that the operations of the company are still ongoing with the Definitive Feasibility Study for West Kytlim which was formally approved on 21st January 2021.

It is the understanding that the sale of these shares were to cover an urgent and critical cash call and that all the shares sold were acquired by Veles International. 

Alexei has no intentions to sell him remaining shares and/or options at this time.

Who are Veles International?
Veles Capital is one of the oldest Russian privately held investment companies providing financial services and access to Russian financial markets, private equity and real estate investing to corporate and high net worth individual investors.

What we now know

We now understand that the sale of the 27,400,00 ordinary shares was not attributed to the sale process of Eurasia Mining Plc. 
The investors who rightly or wrongly assumed that the sale negotiations had collapsed can now rest assured that this is not the case. 

On the plus side, the news that shock the investor community has generated plenty of online activity which could encourage additional buyers, potentially raising the share price above the £0.30 area of which we have been holding steady since the 5th January 2021.

At the time of publishing this post, the SP increased 50% to £0.27 from the start of the trading day. 

Eurasia Mining PLC's SP Crash

Alexei Churakov submitted the sale of 27,400,000 ordinary shares worth £0.29 each, valued at a grand total of £7,946,00.00, on 26th January 2021. At 16:02 on 27th January 2021, an RNS confirmed the sale had been processed.

Alexei is still in possession of 12,282,774 ordinary shares. 

Why did Alexei Churakov sell 27,400,00 ordinary shares?
Alexei Churakov owns a company called Venus Garden Holdings. 20th November 2017, Venus Garden Holdings subscribed £76,336 for 27,262,814 ordinary shares in Eurasia Mining PLC.
Coincidently, this number is almost identical to the volume of shares sold. 
The reason for this may be that the potential buyer of Eurasia does not want another company or subsidiary having any ownership in Eurasia. 
Alexei has been able to retain 12,282,774 as these are directly ties with Eurasia and not purchased as a subsidiary.

What caused the share price to drop so quickly?

By Mr Churakov selling a proportion of his holding caused the sale price to drop accordingly. Due to the large volume of shares sold, this triggered a quantity of  investors' stop losses. The share price fell from £0.293 at an alarming rate nearly 50%.

Stop losses are automatic triggers to sell a set volume of shares if the sale price was to match or drop less than a stated price. It is an effective way to ensure that you do not lose any more money than you are willing to stake, but it has limitations and as we have seen today, a detrimental effect to the stock market.

With a snow ball effect of stop losses being triggered, the sale price dropped at a lighting speed until finally resting at £0.15.

At 16:25, the share price finally started to crawl upwards from the traumatic dive, but the trading day ceased after two price monitoring extensions at £0.18. Many investors saw the opportunity to purchase in-demand shares at a cheaper than expected price and this has aided the share price from falling any lower. 

What do we expect to happen now?

Quite simply, nobody knows. 

One opportunity is for the shares to be bought up by those still believing in Eurasia. This is how the share price increased on the final stretch of the trading day. 

However, as the news travels of the near 50% loss, many additional sells are expected upon open on 28th January 2021 which has the potential to drive the share price lower.

We do expect Eurasia to be releasing an RNS in response to the sudden drop to ease investors. We all hope that this RNS is released in response to news regarding the sale of Eurasia. The process has been discussed behind closed doors due to a non-disclosure agreement so we know very little about the sale or the parties involved at this time.

We have to remember, that when selling shares, there needs to be a buyer. For any transaction to occur, both parties must exist. What we may be seeing is the first of many transactions to aid the sale process. If this is the situation, then the share price will raise upon the completion of the transaction. 

Thor Mining

 

Bull & Bear Invest Chatter discusses the exciting prospects that Thor Mining PLC have to offer.

Additionally, we explain the process of  the in situ recovery process with graphics to help explain the concept

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Bull & Bear Invest are on Youtube!

 

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As a gift from us to you, we have also compiled a short video containing some valuable research into Rambler Metals & Mining PLC. 

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Weekly Feed - Issue 1

 

22nd January 2020

Weekly Feed

Best Performing Stock on our watchlist:
Rambler Mining & Metals (RMM): 26.67% 

Poorest Performing Stock on our watchlist:
Argo Blockchain PLC (ARB): 22.40%

Latest News

• Thor Mining (THR) has raised gross proceeds of £750,000 via placing new ordinary shares. The funds raised will be utilised to explore the Ragged Range project. The RNS was released on 19th January 2021.
  
  
• Eurasia's West Kytlim Definitive Feasibility Study (DFS) was approved on 21st January 2020. This is approval regarding the development of the mine, reducing risk and increasing production.

Upcoming Events:

1.  Q4 results are expected imminently
2. Final sale developments from Eurasia Mining
3. More detailed observations and Social Media Channels expected from Bull & Bear Invest
   
   

Current Trends:

• UK Government is pushing to become the world leader in producing clean energy from wind and aims for off-shore energy production to power every home in the country by 2030.

Upcoming Trends:

One to Watch: Greencoat UK Winds (UKW)

Greencoat UK Winds is currently holding in the region of £1.362 per share. Historically, we saw a dip to £1.04 on 19th March 2020. This was mimicked across the board due to the announcement of the nationwide lockdown in reaction to the Corona Virus outbreak. UKW made a very rapid recovery and continues to maintain the average expectations. 

Greencoat aim to provide an annual dividend of 7.1% in line with inflation.

Greencoat UK successfully completed an investment of 49% of the Humber Gateway Windfarm off of the Yorkshire Coast. The completion of the acquisition was announced on 15th December 2020. 
In the NAV report issued in September 2020, Greencoat state that are committed to acquire 4 further wind farms over the period of 2021 - 2023.

The successful investment with Humber Gateway fulfils one of the four commitments, leaving 3 further acquisitions to be completed. 
The Q3 report stated an 8% decrease in energy generation, the Q3 average wind speed was 8.136mph, whereas the Q4 average, using the same data, was 7.883mph. The Q4 report is due to be released imminently.

Tip: Keep up to date with the Headlines! 
My first significant profit was made with Boohoo upon the disclosure of the audit results regarding the less-than-minimum wage and provisions for staff. I watched the value of Boohoo dive over the course of a few days, and when it steadied, I invested.
Understanding the circumstances was a key factor; due to a national lockdown, families were forced to shop for clothing online. Boohoo had increased it's advertising campaigns and on the approach to Christmas, the value of Boohoo shot back up to where it was and beyond providing a handsome profit. 

Headlines are massive influencers on the stock market. Use them to your advantage.

Bull & Bear Invest Chatter make every effort to ensure that the information shared is accurate, however, we cannot take any liability for miscommunicated data. Bull & Bear Invest Chatter takes no responsibility for investments into a stock that has been discussed and a loss is incurred. Please always do your own research. 
* The stocks listed are those on Bull & Bear's watchlist and by no means offer a full representation of the current market. Bull & Bear will only discuss information that is familiar and honest research has been conducted.

Eurasia Mining (EUA)

 Eurasia Mining Plc has been on my radar ever since I began trading. Eurasia (EUA) was one of the very first recommendations given to me and despite being told by everyone to buy in, I watched the price rise whilst I did my research, trying to fathom what makes this company so valuable. 

I finally bought a volume of shares at £0.16 after the horse had initially bolted, but I had researched enough to understand how and why this could potentially return such an incredible sum.

Eurasia announced that is is launching a Formal Sale Process under the UK Takeover Code following a "number of inbound expressions of interest from multiple parties interested in acquiring all of or a stake in its assets" on 1st July 2020.

10th August 2020, Eurasia was granted the exploration licence for Typil, a 24.5 km2 area of land with a 17km river course. For those who need to know why the river course is important to gold mining: volcanic action forces the rich earth minerals to the surface. This is then eroded by the running waters and carried down stream where it settles into the banks and creek beds. Over time, rivers change course, leaving the mineral rich creek bed dry and ready for miners. 
This in itself was major news, but also provided additional content to include in the sale. This in turn boosts the companies value and the potential increase in the sale price, resulting in a respective share price increase for all those invested when the company sells.

The best analogy I heard to describe this was: "When you sell a house, you make sure your garden is neat and tidy to encourage sellers." This made perfect sense to me.

During the release of the Interim Report on the 30th September 2020, Eurasia Mining Plc confirms that they have restructured the board and executive team in order to fully focus on the sale of the company. Additionally, the state that DLA Piper have been appointed to work on the legal proceedings of the sale. 

EUA provide a further RNS on 3rd December 2020 suggesting that they believe that the DFS will be ready for the final approval later in December. Shareholders waited patiently for news, however, nothing materialised. As a result, the share price trickled down at a rapid rate. Leaving the £0.40's and settling within the £0.30 and £0.28 range. 

Today, at 10:28hrs, Eurasia released the RNS confirming the approval of the West Kytlim Definitive Feasibility Study. It is understood that this long document is the final piece of the puzzle that could conclude the sale of the company.

We have our fingers crossed for an update on the sale process.

Tip: Build a base of reliable research material and suppliers.
People will often give you tips in which stocks to invest in. Eurasia was a stock that I delayed purchasing because I was sourcing information that I could rely on. If I knew where to look for the information I needed, then I could have bought in whilst the price was significantly cheaper.  

Rambler (RMM)

I quickly took an interest in the mining industry whilst coming to terms with the Stock Market as I was watching companies such as Eurasia Mining and Greatland Gold rocket up in price. Although I had invested a small pocket of money in these, I felt as if these investments were not 'mine'. I felt as if they had been handed to me and I hadn't earned it, like a small child being handed something of value but not truly understanding the hard work that went into creating it.

I have always followed the golden advice of "never put your money on something that you haven't researched yourself" but I was drawn the the price of £0.0025 per share. I understood it as researching a bank account before you start saving money with it.

I spent hours online, researching the company and discovering the latest news and assets. I found that Twitter, LSE.co.uk and other forum based sites provided key information, but I had to decipher a lot of fact from fiction. Understanding the role of rampers and de-rampers (people who intentionally influence others to buy or sell shares by manipulating news, fact or fiction. But the information that I did extract convinced me to trust my instinct. 

Slowly but surely, the RNS's began creeping out about how Rambler are finding funds to clear all the debts and how they have managed to stay operational, albeit at reduced rates, during COVID-19.

Watching price rise, green day after green day, it became an obsession to watch the numbers increase. This obsession has now made part of my daily routine. 

Today, Rambler opened incredibly strong and took an early lead with £0.0047 within an hour of the market being open and pretty much maintained that level throughout the day, closing at £0.0044. 

It didn't take long before my phone started ringing with friends and acquaintances thanking me for talking about Rambler. I hadn't known prior to this that others had gone about doing their own research and also thought that Rambler shows huge potential.

I am still learning a lot about the stock market, but if Rambler can grow 15% in a day that the majority of the market makes a loss (likely to have been impacted by the American President Inauguration), then I have great belief in that Rambler could return a handsome profit. 

This profit, I hope, will be multiple times the value of my original investment. I now know this to called a 'multi bagger'! This time last year, Rambler Metals & Mining was valued at £0.0240. Understandably this was pre-pandemic, however, they appear to have potential to make it back to that margin and commence making the profit us shareholders hope for!

Please always do your own research. This blog has been created to express my interests and discoveries with you and it's purpose is not to provide share advice. 

I take no responsibility for people investing into a stock that I have blogged about. 

Starting 2021 with a Healthy Portfolio

Welcome to Invest Chatter, a new blog created to help those wanting to experience the stock market and perhaps learn from my mistakes before they become costly. 

I began trading on the stock market in the Summer of 2020. As the Coronavirus swept across the globe, closing nations downs and forcing the majority into isolation. I took the opportunity to test the waters in stock exchange and educate myself about how it works. 

I have been helped along the way by a handful of very talented and incredibly trustworthy individuals, providing me with 'tips' and advice. 

Some of these tips included Greatland Gold and Eurasia Mining. At the time, I did not recognise the potential and was concerned about investing my money into mysterious territories. It took me several weeks, watching the numbers fluctuate in front of my eyes, the graph switching from red to green, steeper and steeper. As a result of not taking the advice and being rightly nervous, I missed the initial significant increases that would have scored a healthy profit.

Needless to say, over the past few months, I have gained experience, knowledge and understanding. I feel that I am now sufficiently set up with a healthy portfolio, ready to reap the profits that 2021 has to offer. 

Some of my stronger aspects within my portfolio include: Rambler Metals & Mining (RMM), Eurasia Mining (EUA), Thor Mining (THR) & EQTEC (EQT). I am trying to diversify my portfolio, but I have confidence within the mining industry thus far. 

Please use the comments below to share your portfolio and help others find their feet in the stock markets. 

Please always do your own research. This blog has been created to express my interests and discoveries with you and it's purpose is not to provide share advice. 

I take no responsibility for people investing into a stock that I have blogged about.