small cap pick takes early lead in first quarter

We asked a variety of stock market professionals, investment writers and bloggers for their top investment ideas for the year ahead (and beyond).

The tips were published just before Christmas and this is the first quarterly update to see who among this bunch (and me) is doing best so far. Initial prices were taken as of midday 24 December 2020 and the update was at 4.30pm in the UK on 31 March.

Ladies and gentlemen, it looks like we have a winner already – is the game over before we’ve even got halfway?

Andrew Hore, editor of the AIM Journal, plucked a smallcap life sciences company from London’s junior market for his share tip and with a 200% gain so far, it’s not done bad for anyone that liked the sound of his argument.

It looks like a few people did – because the shares took off in the days after the article was published.

Andrew said (), a developer of microbiome-based skin treatments, highlighted the clinical study of psoriasis treatment AxisBiotix that was due to begin in the first quarter, plus potential in areas such as cosmetics with partner Croda.

Indeed, AxisBiotix kicked off enrolment for its food supplement consumer study in January and in February started work with more patients than expected following high levels of demand from psoriasis sufferers and people suffering non-psoriatic conditions.

Half-year numbers revealed a comfortable cash position of £5.5mln as of December and management said they expect significant progress in both the food supplement and cosmetic programmes during the year.

As with all stocks, past performance is no guide to the future, but safe to say this one has a healthy lead with three quarters of the year to go.

SBTX: up 200% so far (from 15.5p to 47.5p)

John Kingham, of the UK Value Investor blog, aimed his sights up at PLC () based on the car insurance giant’s fundamental attractions.

With charms including management focused on the long-term, low costs, multiple European businesses just turning profitable after a decade of building scale, proven ability to move into adjacent markets and potential cash returns on the back of disposals, John also highlighted a double-digit historic growth rate and a dividend yield of 5%.

As predicted, Admiral sold its confused.com price comparison web site at the end of December and followed this with a strong set of results last month, having benefitted from lower claims as people drove less during the coronavirus lockdowns, rewarding shareholders with a bumper dividend of 86p.

ADM: up 35% so far (from 2,293p to 3,101p)

Vince Stanzione, author of the bestseller The Millionaire Dropout, was glowing in his recommendation of uranium.

A “very credible and clean way to generate electricity”, was his theory, now almost 10 years after the Fukushima Daiichi nuclear disaster.

Cameco Corp (NYSE:CCJ, ) was his tip as the safest uranium play, which is up 26%.

His higher-risk option, Energy Fuels Inc (AMEX:UUUU, ), is up 42%, while the HURA Horizons Index ETF (TSE:HURA) is up 27%.

CCJ: up 26% so far (from US$13.56 to US$17.14)

Richard Hunter, head of markets at Interactive Investor, saw a banker in PLC () and so far it has paid off with a strong return.

After a surprise swing to profit in the third quarter and with one of the best capital ratios in the sector and with the regulator having opened the door to a return of dividend payments, he saw NatWest as offering a potentially tasty yield of over 4%.

While there were risks, with the shares having declined by around a third last year, he looked past the pandemic to a “garden [that] could be rosier than many are currently thinking”.

Looking good so far.

NWG: up 16% so far (from 169.5p to 196.25p)

Peter Sleep, senior investment manager at Seven Investment Management, settled his telescope across the pond at Inc…