Generational Opportunities In 2023.

The ROI Monthly. December Edition 2022.

Month In Review - December

Here’s my take on the most important events of December:

• The FED continue their upward trajectory on rate hikes, albeit at a slower pace. This IMO will continue to accelerate the tightening of liquidity in capital markets leading to broad-based selling pressure in general for equities. I expect Q1 2023 to provide excellent entry opportunities for select stocks whose cashflows will be relatively resistant to the expected broader economic slowdown.

• Oil futures selling off YET Oil equities holding steady. Largely explained by Russia maintaining more of its supply than previously expected + China delaying its re-opening. Institutional capital obviously believes Oil prices are set for a boost as seen in the below chart showing the oil majors (XLE) being relatively unaffected by oil’s sell-off.

  

• Conversely, the opposite has been seen in the Uranium market. Chart below showing equities selling off more heavily than spot which, for me will be of great interest moving into 2023. Recession fears will likely lead to a sell-off in assets, but during a recession demand for energy, particularly base-load power provided in significant proportion by nuclear, will mean the drawing of supply inventories should continue and term contracts are likely to be set at higher prices. This for me, will allow me to continue to scale into developers and producers in the Uranium market with confidence.

  

  Ben’s Buys.

  What’s Ben Buying This Month?

  In this segment I give you my take on a particular stock, including my investment thesis and valuation estimate.

  *Disclaimer: I am not a financial advisor and this is NOT financial advice*

  WARNING: Volatility ahead!

  As much as I love talking about trading, now is one of those times where I think being boring and patiently waiting is likely to pay off.

  But, you aren’t reading this to hear about my cash reserves so without further ado here is my stock selection for this month, Aura Energy.

  I believe the chances of its Tiris Project achieving 300-400% ROI are decent PLUS it’s Swedish assets could add another 10x, whilst its development acreage I view merely as a bonus call option.

  Too see my take on AEE, please join the ROI club and I’ll see you on the other side.

  All the best.

  Benjamin

  *Disclaimer: I am not a financial advisor and this is NOT financial advice*