Stocks & Equities

Live Post-Show Webinar

TEN CORE PRINCIPLES FOR TRADING THE STOCK MARKET

  • · Saturday, Oct 27, 2018

  • · 10:15 AM Pacific

  • · Presenter: Tyler Bollhorn

Trading stocks is simple, but not easy. During this one hour free webinar, Stockscores.com founder Tyler Bollhorn will take you through 10 simple principles to guide your stock trading. Whether you are a short term active trader or a long term investor in stocks, these principles will help you achieve better returns and avoid painful losses.

Only 500 registrants allowed – CLICK HERE to register

mindless2

Why Invest in a company looking for ‘pencil lead’?

There are times that investments look odd on the surface but make a lot more sense once you perform due diligence.  With debate circulating over the production of oil and pipelines in Canada, pencil lead might just be what we need to help move Canada to a ‘green economy’.

Graphite pencil lead is only one form of a very common substance – carbon.  Coal, another form of carbon shaped our modern Industrial Revolution and the coal-bearing areas of Ozark mountains made America an Industrial giant in the early 20th century.  Another form of carbon creates diamonds, one of the hardest and most beautiful gemstones in the world.  The picture below does not show diamonds, but its cousin flake graphite, taken as samples from Lomiko’s La Loutre property in Quebec.

pgilloct18-1

Graphite is best known as pencil lead, but it has an incredible array of new uses that make it a miracle material.  A primary use for graphite is to create refractories, which are heat-resistant materials used in manufacturing steel, molds and as insulating bricks in steel foundries.  In addition, graphite is useful as a dry lubricant in area liquids can’t be used, heat sinks in outdoor and stadium lighting, vehicle brakes, and as an additive in manufacturing.

However, graphite’s primary use and the reason it is considered a critical element by both the European Union and America is its crucial role in the green economy.  Demand for graphite is shown in the chart below as compared to other ‘green materials’.

pgilloct18-2

It exceeds copper in the ability to handle electrical current, and to conduct and contain heat.  Further, it is much easier to combine into 3d printing materials – a bright future in additive manufacturing.  However, the most exciting use is as an anode in a Lithium-ion battery, the most prevalent power system for Electric Vehicles.

pgilloct18-3

Electric vehicles will be 50% of the cars on the road by 2040.  The current EV technology depends on the Lithium-ion battery.   There is 15 times more graphite than lithium in these batteries.  Lithium has increased 4-fold in price due to demand.  The demand for graphite is now increasing as the price for battery grade graphite materials has doubled in the last 3 years and is slated to move higher.

pgilloct18-4

In 2012, China supplied 90% of the world’s graphite but that percentage has been dropping every year until. In 2018 the number was 70%.  More graphite is being consumed by the Chinese lithium-ion battery manufacturing boom led by e-bikes, EVs and cellular phones and tablets.  Both the European Union and the United States have declared graphite a critical mineral which indicates there is no economic alternative.  This is good news for graphite companies in Canada.  Canada has a good reputation as a country which is able to supplant Chinese supply of graphite and provide secure supplies.  Quebec is especially important due to the proximity to Eastern American industrial centers and Quebec’s long-term and stable approach to mining industry.

pgilloct18-5

Graphite prices have increased 100% in the last 3 years to over $2,000/tonne.  If this were the gold markets, investors would be dancing in the streets.  However, in the battery materials space, we must see a multi-year, sustainable run to call it a bull market.  This will likely occur, as it did in the lithium market, as demand outstrips supply.  Speculative interest in the graphite market is already beginning to take off and this should help attract major customers or partners to Lomiko’s La Loutre Project.

pgilloct18-6.jpg

From the Editor

A. Paul Gill is the CEO of Lomiko Metals Inc. a Canada-based, exploration-stage company. The Company is engaged in the acquisition, exploration and development of resource properties that contain minerals for the new green economy.

Lomiko’s La Loutre is situated in the heart of Quebec’s graphite area with neighbours like Northern Graphite TSXV: NGC, Nouveau Monde TSXV: NOU and Imerys Carbon and Graphite, which has the only operating mine in North America.  Infrastructure is excellent as the project is 1.5 hours from the International Seaport of Montreal along a paved highway.  They are ready to drill their second resource in a high grade (10%+ Cg).  At present, the project is one of the most promising in the world.  The La Loutre Flake Graphite Property of 18.4 million Tonnes of 3.19% in the indicated category and 16.7 million tonnes at 3.75% Flake Graphite Inferred with a cut-off of 1.5% at the Graphene-Battery Zone. 

In 2018, Lomiko signed a deal to increase the ownership of the La Loutre Property to 100%.  Further, it was able to raise $ 1.5 million for development of the project and, in addition, launched several technology initiatives which will be going to the public markets in 2019.  

Lomiko plan’s to complete drilling at the Refractory Zone of the La Loutre Property concentrating on an area that produced 135 m of 7.74 metres and 110 metres of 14.56% to create a second resource, complete metallurgy and a 3D model of the property and by the end of the year 2019, a Pre-Economic Assessment (PEA) which will establish a book value for the project. 

siegel

With US stocks struggling to post their third day of gains in the last two weeks, more professional investors are apparently buying into the view that the Shocktober market rout represented an “inflection point” for US stocks. And the latest long-time bull to throw in the towel is none other than Wharton Business School professor Jeremy Siegel, who said during an interview with CNBC on Monday that price action in US stocks would be “muted” next year, as P/E ratios decline, tax cuts become baked in yoy comparisons, and rising interest rates, amplify debt servicing costs…. CLICK for complete article

Cutting Edge BioTech – in Victoria?

victoria harbour

As investors we’ve been conditioned to expect the latest and greatest advancements in biotech and pharmaceutical development to come out of the research labs of Stanford or John Hopkins. Or roll out from the corporate campuses of Pfizer or Novartis. So when a small speciality lab in Victoria starts making waves in the industry a certain amount of skepticism is to be expected.

ImmunoPrecise Antibodies (TSX:V – IPA) was founded in 1989 by Robert Beecroft with a very specific proprietary method for producing antibodies – a core requirement for biotech research projects across a wide spectrum, including virtually every R & D project related to the development of pharmaceuticals. Fast forward 25 years and this profitable private company was faced with a decision. Find a buyer for founders looking to retire or perhaps even wind down operations. Instead they chose to pursue a brand new business model. One that sought to rapidly expand capacity, as well as develop a full-service antibody production and discovery offering. The challenge as always, was capital – where to find it today, tomorrow and for the future.

Enter capital advisory specialists Colin Bowkett and Paul Andreola of Venturewerx in Vancouver. Having watched virtually an entire generation of Canadian tech and biotech companies swallowed up and spit out by the Silicon Valley inspired Venture Capital industry, they recognized that a mature, albeit small, company with good EBITDA could carve a different path. Drawing on their experience in the tech sector they were able to coordinate a reverse takeover of a TSX:V shell that allowed ImmunoPrecise’s founders and original shareholders to retain a significant stake in the new PubCo, while providing the financing needed to take ImmunoPrecise to the next level.

Fast forward 18 months and IPA has followed through on the ambitious business plan to be partner-of-choice for pharmaceutical companies seeking treatment for major diseases. They are now arguably the industry’s first full-service antibody discovery provider. Acquisitions and organic growth have resulted in a significantly expanded operation in Victoria, and the addition of two speciality operations in the Netherlands. Revenues are on track up 400% over the previous year, quarter over quarter growth is up 30% in Q3 2018 alone, and a recent financing was over-subscriber by almost 100%.

Perhaps most importantly is the addition of a new dynamic CEO Dr. Jennifer Bath. Dr. Bath brings experience with biotech on an international scope and scale, taking what was already an impressive growth plan and pushing it to new heights. Her team, including CSO Dr. Deanna Dryhurst, recently announced a multi-year development agreement with a top 15 global pharmaceutical company that remains undisclosed at this point. And negotiations with other top 10 global companies are currently underway.

And maybe for Canadian investors IPA is an acknowledgement that we don’t always need to look south or at the billion dollar mega-companies for exposure to the next generation of biotech success stories.

legalweed

Canada is now the second country in the world to fully legalize cannabis, allowing adults to consume marijuana for recreational purposes. Much has been said about the move, with journalists and experts discussing various topics ranging from the impact on the Canadian economy, to the pitfalls it may have, to supply shortage fears.

The legal age for marijuana use will be 19. Recreational users can possess 30 grams of marijuana, while medical users can carry 150 grams…. CLICK for complete article