Time to GO BACK to scandinavian green and tech stock that sold off in Q2 – THE MACRO will drive repositioning.

When investing one thing to follow is macro. I follow Darius Dale for macro. Of all the research he is the most reliable. See 42macro.com.

His recent position is:

  • inflation is decelerating and will be decelerating further. This has several implications – the inflation linked assets are loosing steem.
    • Commodities are decreasing – look at CRB index. Most commodities are going down with exception of oil. Oil is lately loosing stream too.
    • USD and other risk off assets are strengthening
    • investors are starting to rotate from inflation and growth assets into more defensivě plays
    • reopening stocks might be too risky to stay in – the expectations have been too high and will never be met
    • interest rates are going down – this should allow people to come back to tech and green stocks. As the economies will be growing less strong than they did in Q1/Q2, focus should be on high quality stocks.

In summary – Scandinavia green stocks were hit early this year when people became were scared of inflation. The inflation worries are starting to disappear. Might be time to start increasing exposure back into those stocks that sold off. High quality should perform better.

IDEAS FOR FURTHER RESEARCH:

Quantafuel – the stock sold off 30% in the last 10 days on delay of Skive and CEO resignation. The management stepped in and started to buy shares. QFUEL had this moves before. These moves have so far been profitable. I played it three times. I am long QFUEL. Very long.

Biovica – it is one of the top picks for this quarter. The company is due to get FDA approval and start sales in the US. The company has 25 studies from top US and EU hospitals, that their breast cancer works, safes lives and costs of treatments. Biovica is to become a global leader in this novel way of testing for cancer. Xbrane in similar situation doubled in two months prior such announcement. Biovica will most likely do as well. See the below article for full investment case:

Biovica International Should Double On Novel Breast Cancer Test Launch In Q3 | Seeking Alpha

Linkfire. It is a recent IPO listed in Stockholm. It was placed at 11.20 SEK, it is now around 10 SEK. It is a play on growth of music streaming and in the next phase movie streaming. Pareto will be publishing research in two weeks time. I am long and very bullish Linkfire. I will publish an article on Linkfire in the next two weeks.

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