I’ve recently updated my watchlist: https://dtm5.com/watchlist/

If you read my blog you know I like using basketball analogies. It might be because I spend a lot of time in high school gymnasiums watching one of my kids play ball. Or maybe because I’m a big Toronto Raptors fan.

Basically, the DTM5 has 5 starters, some bench players and a taxi squad. Right now there are 13 on the list. I really like the basketball analogy as it does capture the essence of my strategy – 5 players are going to get the bulk of the work; One or two of those players will be big stars and drive the team. There are some bench players who may evolve into starters. And the taxi squad that I’m having a look at.

Here three recent additions to the squad

LQWD – Liquid FinTech Corp

LQWD is interesting. In their own words:

LQwD has developed software infrastructure to support growth and usage of the Lightning Network, and established payment channels across the ecosystem

We are a Lightning Network Service Provider-We make it easy for companies to integrate and use the
Lightning Network

We provide clients Lightning Nodes & Payment Channels as a service, auto deployed by our platform for a monthly fee

We stake our Bitcoin on the Lightning Network. We earn fees for helping the Lightning Network function by leasing our Bitcoin to payment channels in order for them to operate properly.

Basically, LQWD is an investment in a ‘software infrastructure’ provider who have developed a ‘PaaS’ (Platform as a service) that will integrate companies with the lightning network. Don’t know what the lightning network is? Check out this video: https://www.youtube.com/watch?v=SXT9iq__V8c

What brought it to my attention was the very small market cap, the good looking management that passed the initial smell test, decent balance sheet, and my interest in getting equity participation in the potentially massive success of the lightning network.

I’m still proving up the merit on this one. It has the macro leverage that I’m looking for. I’ve opened a small position which puts it on the bench. We’ll see how it goes!

LUCK – REAL LUCK GROUP LIMITED

LUCK is back on the watchlist. It first came to my attention as I was sniffing around the esports / gaming space earlier this year. The share price was in a firm technical bear and, despite making progress developing their gaming platform and technology they seemed many quarters away from revenue generation.

Currently, the SP looks like it has bottomed; The market cap is small is equal to last quarter’s cash balance; They are moving into revenue generation phase; Shares are tightly held; and they have enough cash runway to get them through 5 quarters, which should be enough time to get them into a better position to go cash flow positive or at least able to raise money under more favorable terms.

I’ve started a small position and am going to keep a close eye on this one.

RIDR.P – Metal Energy

Currently Halted, soon to be trading, Metal Energy is the latest addition to the Ore Group of companies, seeking to explore and prove up two separate potential nickel deposits.

I’m interested in this for a two reasons. One, I’m a believer in the longer term macro prospects of nickel, and there is no greater way to get upside leverage than owning a chunk of a quality exploration play. Two, Stephen Stewart and his Ore Group of companies have created some major value for shareholders in Uranium (FIND) and Copper (QCCU) explorers, and have a reasonable chance of doing so in Gold (ORX & MIS).

So, I’m willing to have a good look at this as it gets trading to see if it may fit the merit bill.

BAQ.P – Bluewater Acquisition Corp

Also halted, BAQ recently announced a qualifying transaction (reverse takeover) with a company named VM Agritech which has developed and patented a new type of fungicide for a broad range of agricultural applications.

On the surface, it looks like many other venture type stories. However, the business model – based on licensing the technology – is very smart. The R&D looks legitimate. The addressable market is massive. The management looks competent. The economics of it, while at this time unknown, could be fantastic. The deal isn’t done yet, and its not even trading. So we shall see.

GLTA!