There could soon be fewer single-use vapes littering our streets and taking up valuable off-licence shelf real estate, if smoking permabear Rishi Sunak gets his way.
Speaking to the Tory faithful in Manchester on Wednesday, he called for a consultation and potential crackdown on disposable vapes.
Nothing was set in stone, but it felt less like harrumphing and more like a genuine reality, given his no-nonsense plan to eliminate analogue vapes (cigarettes, that is) from the British Isles in their entirety by raising the legal limit by one year, every year until apparently only octogenarians can enjoy a delicious Pall Mall.
Where does that leave the likes of AIM-listed Supreme plc, a major distributor of leading disposable vape brand ElfBar?
Speaking with Proactive, Supreme sounded more than happy to collaborate with the government on a way forward, but shareholders being the nervous bunch they are, shares took a bit of a tumble.
Supreme fell around 14% on the junior market this week, mirroring a similar downturn when Sunak made similar threats to the single-use vape industry in September.
Markets wary of higher-for-longer narrative
It was a bit of a downer for the junior market as a whole this week, with the AIM All-Share Index slipping 4%, exceeding the FTSE 100 blue-chip index’s -1.8% dip.
Alongside a Sunak-sized beating for Big Tobacco, oil stocks also weighed heavily on the markets on the back of weak crude prices, while ropey metals prices added to the headwinds.
On top of that, stronger-than-expected US job openings reinforced the higher-for-longer interest rate narrative, adding to further risk-off sentiment in the global equities markets.
Winners and losers
Among the small-cap energy and natural resources stocks to get knocked down this week were Horizonte Minerals PLC (AIM:HZM, TSX:HZM, OTC:HZMMF), which fell some 80% after encountering difficulties in its Brazillian nickel operations, Oracle Power PLC (AIM:ORCP), which collapsed nearly 60% after it unveiled a heavily discounted £350,000 fundraiser, and Amte Power, which was slapped 25% down due to its own heavily discounted fundraiser.
On the upside, Zanaga Iron Ore Co Ltd (AIM:ZIOC) had a blinder, rallying over 50% as goodwill continued to pile in following last week's interim trading statement.
North Sea player Orcadian Energy PLC (AIM:ORCA) nearly doubled this week after securing a £350,000 equity funding round. While this was at a 14% discount (certainly not a terrible figure in the year we’re having), prospective news of its bid to secure three North Sea permits bade well for investor confidence.
Outside of the heavy industries, life sciences minnow ValiRx PLC (AIM:VAL) soared over 130% across the week. Much of the upside was on Friday alone, prompting the company to confirm “that it is not in possession of unpublished price-sensitive information”.
Regardless of the sudden rally, VariRx shares have been elevated since posting an optimistic operational review at the end of September.
Elsewhere in the biotech scene, Renalytix PLC (AIM:RENX) surged 28% on Tuesday after the Centers for Medicare & Medicaid Services (CMS) announced a price of $950 for the company's FDA-approved kidneyintelX.dkd test.
However, Renalytix’s shares have since traced from a mid-week high of nearly 80p to 48p at the time of writing, despite making progress on its US patent claims.
Spirent Communications (LSE:SPT)’ share price plunged by more than 30% after the company released a profit warning for the third quarter on Wednesday.
The provider of automated test solutions for next-generation devices and networks said its revenue is expected to be “down broadly 20 percent” for the first nine months of 2023, “in line with the reduction seen in the first half”.
Bull or bear for esports stocks?
Finally, a look at the listed eports stock would seem to suggest a fad that’s run its course.
However, the latest data show that in the UK the sector is alive, kicking and growing at a decent clip. Revenues are forecast to be $202 million this year, up more than 30% from 2020 levels.
So, does this put the David Beckham-backed Guild Esports and Gfinity in bargain territory? Possibly.
Certainly, the current valuations don’t seem to reflect the outlook for the industry, which is expected to be worth a quarter of a billion dollars by 2025 domestically and around $1.9bn globally, according to Statista.