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Zak's Small Caps: The Lifetime Achievement Award

celebrity on a red carpet in front of paparazzi
The excitement and glamour of the Small Cap Awards is like no other...

I have to say that I am a sucker for awards ceremonies: the glamour, the black tie, the chance to reacquaint yourself with your peer group, and of course a decent showing of food and wine.

Mid-summer has become the time for the Small Caps Awards, and they are now in their fifth year. Working for at least a couple of the sponsors, and having been a small caps enthusiast for more than 30 years, I have to say that such an occasion is like being at the Oscars.

Even better, given my obsession with politics, Lord Young of Graffham – a former Trade & Industry Secretary – being the keynote speaker and sitting at the same table really was a highlight. This is especially so given that some of his successors appeared to embrace the idea of business prevention, rather than creation.

But before I turn into a total luvvie, I have to mention the outstanding winners from my perspective. Gear4Music Plc (LON:G4M), the online musical retailer certainly hit the Zeitgeist, as Company of the Year, given how popular its online peer groups in clothing and beyond have done, from (NASDAQ:AMZN) to (LON:BOO).

The NEX Exchange Company of the year was Chapel Down Group (LON:CDGP), where there was cause to celebrate its English wine being served for the first time at Ascot this year. The award for all round good egg, as well as the Lifetime Achievement Award went to Malcolm Diamond, MBE, a non-executive director at Trifast. This came after 35 years.

Incidentally, this is almost as long ago as the first and last time I won anything – The General Knowledge Prize at school in 1980. Clearly, as they say in the academic world, I will just have to try harder if I want to win anything.

In terms of his week's winners as far as Zak's Small Caps are concerned, we have a happy incidence of deja vu. The two stocks I am going to mention have appeared recently. The first is the much followed MySQUAR Limited (LON:MYSQ). Here there is a trio of positive technical drivers.

The main one is the way there has been a golden cross buy signal this month between the 50-day and 200-day moving averages, one of the classic buy signals on the day it occurs. The second is the bounce for the RSI indicator at the neutral 50 level from above, a leading signal on potential upside.

The final plus point is the way that the share price of MySQUAR has bounced above both the 50 and 200-day lines, a sign that the bears have tried and failed to bring the stock down. The view now is that we should be treated to progress back toward the best levels above 10p on a three to four month timeframe. Only back below the 200-day line at 3p would even begin to question such a charting idea.

Sirius Petroleum (LON:SRSP) is another former alumni of this column which has been flourishing in share price terms. Here the story is that we have been looking at progress in terms of the early June bounce off the 200-day moving average at 0.75p. All of this is happening within a rising trend channel which can be drawn in from as long ago as the summer of 2015.

The best case scenario here over the next three to four months while the stock remains above the 200-day moving average line is that we see progress towards the top of the two-year rising trend channel as high as 1.7p.  

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