Chen’s Top Picks for the Third Quarter :: InvestMacro


source: Streetwise Reports 06/30/2022

– Do you want to know where to go in these turbulent times? Asset manager Chen Lin has some thoughts on his top picks for the third quarter.

Asset manager Chen Lin has been selected for the third quarter, and it includes an energy company, a silver miner, two silver ETFs, and several biotech companies.

He also takes a victory lap in a pick from the second quarter doing well.

Chen said he has been eyeing the energy sector since Colombia on June 19 elected a new president, leftist Gustavo Petro, who wants to stop new oil and gas exploration and end open mining.

Petro is the first leftist leader of Colombia, and he is now one of nine Central and South American countries with leaders ideologically inclined in this direction.


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But Chen said the situation represents a great opportunity for investors.

Canacol Energy Ltd.

based in Calgary Canacol Energy Ltd. (CNE: TSX; CNNEF: OTCQX) It is a major player in natural gas production and exploration in Colombia. its stock decreased 9.3 percent Monday after the runoff election, the company’s biggest intraday drop since May 2020.

But analysts remain optimistic about the company, including Eight Capital’s Chen and Phil Skolnik, who say the company’s long-term prospects have not been hurt.

“We continue to believe it is difficult to make drastic changes due to the balance of power in Colombia,” Skolnik wrote in a research report dated June 20. Reported by Bloomberg.

He noted that Petro still faces a divided Congress and term limits.

Canakol. Source: Canacol Energy Ltd.

“The winner is basically a lame duck,” Skolnik wrote. The company also has a file New pipeline to Medellin Going online will essentially double his output, Chen said.

“So far, it’s at a historic low due to the Colombia election,” Chen said. “It looks like a very good opportunity.”

Canacol also recently announced the release of Earning 0.05 CAD per share To shareholders, payable on July 15.

It said it is Colombia’s largest independent onshore natural gas exploration and production company, and that it provides about 20% of the country’s natural gas.

Canacol has a market capitalization of C$449.36 million and 170.86 million shares outstanding. It is trading in the 52-week range of C$4.09 and C$2.43.

Next Mining Company; Silver ETFs

The green energy revolution has a silver lining, Chen said, as the increasing demand for solar panels is driving up demand for the precious metal. The use of silver in solar energy applications increased 13% to 113.7 bananas in 2021, according to the Silver Institute.

Chen recently gave a presentation at Metal Investor Forum in Toronto in June, where he said he praised the virtues of buying in the sector.

“We have a historic opportunity for silver,” he said. “Demand for solar panels will rise steadily.”

He said one of his favorite things is Altaley Mining Corp (ATLY.V)is a Vancouver-based mining company with two 100% owned projects mining gold, silver and base metals in Mexico. The company said the Tahuehueto mill is set to ramp up to full production by the end of the year, and its Campo Morado project produces an average of 2,200 tons per day, and is estimated to be the sixth largest zinc producer in Mexico.

Chen said the stock is down, from C$0.35 in April to C$0.18 on Tuesday, with a block trade expected. The The company said That director Roberto Guzman Garcia is selling up to 50 million of his 68.2 million shares as part of a restructuring of his Mexican real estate business. Sales take place in a series of private transactions.

After trading halted in “two weeks”, Chen said, the pressure will ease. “It’s a very good buying opportunity for this stock.”

Altaley has a market capitalization of C$48.63 million with 277.89 million shares. It trades in the 52-week range of C$0.80 to C$0.18.

Chen also proposed two silver exchange-traded funds (ETFs): the ETFMG Prime Junior Silver Miners ETF (SILJ) and the Silver Miners ETF (SIL).

Finally, Chen picked three companies from the biotech sector, including one that returned to perform from the second quarter.

Trichida Company

Tricida, Inc. (TCDA: NASDAQ) is a pharmaceutical company that is developing Veverimer, which is designed to treat metabolic acidosis in patients with chronic kidney disease. US Food and Drug Administration (FDA) He did not agree to the drug in 2020, but the company plans to reintroduce the New Drug Application (NDA) in 2023.

Hedge Fund, Venrock Healthcare Capital Partners, Owns more than 10% of the shares in the company and acquired more than C$13 million worth of shares this month.

“It looks like the company is about to break out of the chart,” Chen said of Trichida.

Tricida has a market capitalization of $542.06 million with 55.42 million shares outstanding. It is trading in the 52-week range of $12.45 and $3.55.

Amyris Inc.

Chen said he sees a lot of potential in Amyris Inc. (AMRS: NASDAQ)a synthetic biotechnology company that “programs” cells to create sustainable ingredients.

The company just last week announce It has successfully started production at its new flour sugar fermentation plant in Barra Bonita, Brazil. The factory consists of five micro-fermentation “mini-factories” that can produce 13 of the emiri molecules, which are used in everything from health and beauty products to flavors and fragrances.

From the first quarter of 2021 to the first quarter of 2022, The company said It saw core revenue growth of 75% and consumer revenue increasing 121% to a record $35 million.

“They are going to get off to a very strong start in 2023,” Chen said. I recommend using any vulnerabilities in the next few months to accumulate stocks. If they can generate $2 billion in revenue by 2025, the stock will have (A) at least 10 times the upside, and it could be a lot more.”

Amyris has a market capitalization of $593.07 million and 319.71 million shares. It is trading in the 52-week range of $17.19 and $1.47.

Axsome Therapeutics Inc.

The asset manager also doubled down on its top pick from the second quarter, Axsome Therapeutics Inc. (AXSM: NASDAQ)a biopharmaceutical company focused on treatments for diseases of the central nervous system.

The company has been waiting for decisions from the Food and Drug Administration about drug candidates for major depressive disorder and migraine headaches.

Its stock is up more than 50% to $37.03 on Monday newsletter That it received a proposed classification for its Non-Disclosure Agreement for major depressive disorder, bringing it one step closer to approval.

Axsome has a market capitalization of $1.44 billion and 38.91 million shares outstanding. It is trading in the 52-week range of $74.10 and $19.38.

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