Tue 11 Aug 2020

All Ords 622 up 25 pts or 0.4%

Superfund portfolio
The portfolio fell 1.4% in value as follows:

• A 5.0% fall in Phoslock shares (PET, 19¢ down 1¢, $119m, daily, hourly) cut 1.6% from value.
• A 0.7% rise in SciDev shares (SDV, 67.5¢ up 0.5¢, $101m, daily, hourly) added 0.3% to value.
• A 1.0% fall in Audio Pixels shares (AKP, $22.19 down 22¢, $637m, daily, hourly) took 0.2% value.
• Movements in other stocks shaved 0.1% from value. Main influences were MHC -9.1% (daily) and FGR +4.2% (daily).

PET hit the August low of 18.5¢ during the day and presumably could go lower still. It would seem that investors do not trust the company, do not trust its management and do not trust China in general and BHZQ in particular. How else could one explain this punishment by the market of a financially strong company with huge growth potential, albeit one that is back to making losses due to some short term issues outside of its control? Getting some runs on the board, particularly a big boost to cash receipts, is perhaps the only thing that can cure this misconception but that could take months.

Trust portfolio
The portfolio fell 3.3% in value as follows:

• The 5.0% fall in Phoslock shares (PET, see details above) cut 2.8% from value.
• A 1.4% fall in Electro Optic Systems shares (EOS, $5.60 down 8¢, $837m, daily, hourly) took 0.3% from value.
• The 1.0% fall in Audio Pixels shares (AKP, see details above) shaved 0.1% from value.
• A 2.6% fall in the US portfolio shaved 0.1% from value. Main influences were MELI -6.0% and AYX -10.1%.

Other stocks
Unfortunately that was a false breakout yesterday for MSB ($3.36 down $1.51 or 31%, hourly). Very false! But the others still look good.

New breakouts of interest
Ironbark Zinc (IBG, 1.5¢ up 0.2¢, $14m, daily)
Base metal explorer at Captains Flat with a small Zn/Pb resource in Greenland (high grade core 17.6Mt grading Zn 7.5%, Pb 0.6%, Ag not mentioned, within a larger resource). Speculative, obviously.

Synertec (SOP, 6.5¢ up 1.1¢, $18m, daily)
Background in pharmaceutical plant engineering design and construction, pivoting towards technology including a custody transfer system for the LNG industry, and an association with a company developing a solution for the treatment of water-based oil and gas sludge. Blue chip client base. Dec HY revenue $7.3m, NLAT $0.7m.

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