The summer is almost gone, and it has been a heck of a year so far.
Most of my holdings have been beaten down along with everything else. I’ve made some serious adjustments since the start of the year. As I commented on my ‘Results & Asset Allocation’ page as of Dec 31, 2021, for a long term investment strategy, I sure have been trading a lot.
But at this point, I’m more comfortable with my holdings and the trading has lowered substantially. Here are some comments on what I’m investing in.
Nubeva Technologies (TSX – NBVA) remains a key holding in the DTM5. I’ve built a position in the company over the past 12 months as they seek to commercialize ransomware reversal and decryption solutions. It has been volatile; YTD it is down over 50%, and over a 1 year period the share price is flat. I’m bullish on NBVA as a venture technology play in a high growth sector. I think there is some risk inherent in the position – Its value is unjustified from its current share price – But that is offset by the potentially incredibly lucrative IP.
Reviva Pharmaceuticals (NASDAQ – RVPH & RVPHW). I’ve built an irresponsibly long position in RVPH over the past few months as it had its share price decimated, along with the rest of the small cap biotech and pharma sector. I first blogged about Reviva back on March 25th.
RVPH’s success is contingent on the results of phase 3 trials on its lead drug candidate, Brilaroxazine. It is a heck of a speculation. Just what DTM thrives on. And recently the share price has popped up and started trading like I was hoping. I like the share structure; I like the fact that management has been working on this for over a decade: I like the sector; I like the pipeline; and I love the clinical results so far. This is shaping up very well.
Plurilock (TSX – PLUR) is quietly moving forward. Their strategy of commercializing device-free, code-free multi-factor authentication & continuous authentication solutions continues to unfold. A recent acquisition has pushed their ARR above 40 million, and a recent sale of their software solution with a major commercial customer further validates their IP. To top it all off, the Canadian Department of National Defense has purchased their flagship software product ‘Defend’ for evaluation and potential expansion into various departments.
I really like the opportunity from its current share price in the low 20s. I like a good technology story and I like a good acquisition strategy and I like ridiculously cheap valuations. It has all three. I’ve blogged about PLUR a couple times in the past. My most recent update was back on April 30th.
I’ve been quietly picking away at Plurilock and will likely continue to do so. They are executing, communicating and having success. It represents approximately 5% of my holdings and I could see that increasing if they continue to execute.
Quebec Copper and Gold (TSX – QCCU) and Metal Energy Corp (TSX – MERG)
I’ve trimmed back my positions in these excellent little exploration and development companies. I believe in their long term prospects and think they are undervalued; I think management of both (both are part of the Ore Group) is doing an excellent job at moving them forward.
Simply, I’ve backed off of them over the past few months due to economic conditions. The long term case for battery and industrial metals is clear; However the short and mid term economic issues are also clear – Current government fiscal policy and a potential recession plays havoc with industrial metal prices and the companies that explore or mine them.
So, there will be a time to load up on both again. And I shall. I’ve blogged a couple times about QCCU and I stand by those posts. It is a great asset in a great location, and one day will be worth multiples of its current valuation. I think MERG has the same potential, although it is earlier in the developmental timeline.
Skylight Health Group (TSX – SLHG)
Welcome back Skylight!
A quick DTM5 refresher. I treat my portfolio like a basketball team. I’m not afraid to throw players on the court for short periods of time to get familiar with them. I don’t necessarily need to keep them out there. I can sit them on the bench and then put them back in. Price matters. Timing Matters. A good investment at the wrong time or price is a bad investment.
Skylight’s share price has been slaughtered along with the rest of the small cap health care sector. So much so that it lost its NASDAQ listing. Ouch! But underneath the declining share price and market misery is a company that is executing its strategy.
I’ve been watching SLHG since Feb of 2021, when I commented
It trades currently @ 8.30 on the TSX which gives it a market cap of $262 million. There is undoubtedly some potential here but that valuation tells me the horse is way out of the barn, like miles out, at least from the DTM5’s perspective. I’m gonna keep an eye on it and if the price continues to come down I’ll do a deeper dive into its merit. This is the kind of company that is going to get bigger – more revenue, more acquisitions. I suspect the ‘exit’ would be a sale to a larger health care company 5-10 years down the road. But to pay 262 million right now for a company with very little revenue, no profitability and knowing their growth will have to be purchased one piece at a time is a stretch at this point.
From its current Share Price of approx 63 cents per share, I’m looking at it in a different manner. I’m back to being a buyer. More on this in the near future.
Real Luck Group (TSX – LUCK)
Well it doesn’t get any more risky than owning shares of an online casino / E-sports betting site that has never made a dollar. It passes my screens (amazingly!); It is a small position; I’m fascinated with the sector, and I like an underdog. I’ve talked about LUCK a couple times over the past year. Here is a link to the LUCK post:
I’ve been buying some of the stock in the 10 cent range recently. Lets see what this puppy can do!
Thats it for now! If you have any questions about these holdings or anything else, please feel free to email me!
GLTA!
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