Short Term Trading Weekend Lounge: 7 -9 Apr, page-93

In recent weeks, I talked about keeping an eye out for greenshoots in the tech sector and definitely seemed to take further shape during the week.

Sometimes a sector rotation can be triggered by an IPO knocking it out of the park, which draws money into the sector. DEM did that yesterday and well done to all holders!

Also of note was SE1 hitting new highs yesterday, having formed a nice base after the IPO. EMC another that has moved sharply of late, up towards $1. QFY (IoT space) has performed exceptionally since its listing, putting on nearly 100% in less than a month.

CFO and NTI have both struggled in recent months but are 25% off their lows.

In terms of positioning into the sector, I'll be selective but on the lookout for good techs with some combination of: strong mgmt, sexy product/service, blue sky/disruptive appeal, low EV and quality lead manager. You'll rarely get all of them but that's my filtering process.

I've taken some Aquabotix, as it was a tightly managed book with big scalebacks, relatively low EV, sexy sector and the money backing it is from the Droneshield (DRO) stable. My guess is, like SE1, it gaps up on open, hits an intraday high of ~30c then forms an IPO base for the next few months and is news driven.

Field Solutions Group RTO: great little IT/cloud service provider, with a focus on regional Australia. IPO summary here:

https://hotcopper.com.au/threads/field-solutions-group.3315012/#post-23551884

THC. A low EV, vertically integrated cannabis play that should see significant interest. They will hopefully open day 1 with their Cannabis Research Licence and apply for and receive their Cultivation and possibly Manufacturing licence in the months that follow. Summary here:

https://hotcopper.com.au/threads/ho...3336060/page-15?post_id=23925858#.WOhAIp-ubqA

https://hotcopper.com.au/threads/ho...3336060/page-19?post_id=23948793#.WOhBCJ-ubqA

Lastly, I've been getting set on LER since the placement, as I think it is getting towards the pointy end of proceedings for the company and they could see a significant commercial agreement drop at any time, based on discussions with the Malaysian govt and in the US. The biomass sector is poorly understood and little appreciated in Australia, however it is big business overseas and I expect this little $25m company is flying well under the radar. First target is $50-60m mc.

http://www.leafresources.com.au/Investor-Resources/Presentations/

BOD is experienced and capable of taking the tech global:

http://www.leafresources.com.au/Our-People/Board-of-Directors/