High Conviction List

No paywall

Given the current pullback in markets, now seems a good time to share my list of stocks that I have the most conviction in. This could be used as a starting point, for anyone that’s looking to go shopping for value.

Although at index level, the pullback is quite a small one, under the surface many of the retail favourite names have been hit hard. None of the stocks below are the very speculative ones that retail has got over excited by e.g. Oklo, Coreweave, Strategy

However some of the names, like PCT and TE have been caught up in the sell off as they have a retail following. Indeed, yesterday (the 17th of November), I saw TE down more than 5% while another solar energy play (JKS) was up 13%….the main reason? A popular Substack account had sold TE to buy JKS. This is the market we live in. Retail moves names, and tracking retail influencers helps us understand why things are moving.

Background

To put together this list, I wanted stock ideas that could be used to populate a portfolio.

This means I want a spread across sectors, and ideally factors.

So, for example, stocks like BCO, BRSL, TPL are useful because they are not following a theme that lots of US retail investors are playing i.e. the retail crowding factor is lower

Ideally the list is also diversified across countries hence the inclusion of HKX, Petrobras.

However, it’s not designed to track a benchmark. The number of names in each sector reflect a) my confidence in that sector and b) if the sector is best played with one or two stocks, or a small basket.

So, without further ado here is my current list:

• Cavendish - CAV.LON

• Peel Hunt - PEEL.LON

• Brightstar Lottery - BRSL

• The Brinks Company - BCO

• Texas Pacific Land - TPL

• Hong Kong Exchange and Clearing - HKXCY

• Petrobras - PBR

• Alphamin - AFM.V

• Power Metallic Mining - PNPN.V

• Mako Mining - MKO.V

• Sylvania Platinum - SLP.LON

• Tharisa - THS.LON

• Purecycle Technologies - PCT

• T1 Energy - TE

• First Solar - FSLR

• Fairfax India - FIH.U

• KR1 - KR1.AQ

• Nektar Therapeutics - NKTR

• Journey Medical - DERM

In time a write up of each stock will appear on the site, along with follow ups.

Some names, like Cavendish and Peel Hunt are in there to play a short-term potential theme. I will cover it in a note soon. Essentially, they are potential asymmetric plays on possible changes to the ISA or pension rules to support UK capital markets. If changes do not appear next week in the November budget, they will likely be removed from the list.

Performance of individual stocks covered will be tracked, but not as an overall portfolio. I’m expecting the reader to use this as a source of ideas, rather than a portfolio to follow.

The content on this page is for information purposes only. It does not constitute investment advice or an offer to buy or sell any security. You are solely responsible for any investment decisions you make based on the information provided.

Please remember, past performance is not a reliable indicator of future results.

Members of the team may hold personal positions in some of the companies mentioned.