Greetings from San Jose del Cabo in sunny Mexico, where we are finishing off the year with tequila and mariachis. This installment is our second and final, for 2016, review of the Tailwinds Select Portfolio. At Tailwinds, we are always focused on microcap growth stocks. It is our goal to have a fairly concentrated portfolio of between 10 and 20 companies at any given point in time. As of now, we have officially added 3 names to our portfolio; expect a new addition in early January.
To be included in the portfolio, companies must exhibit qualities that pass the Evidenced Based Investing screens we run here at Tailwinds. The criteria change depending upon the stage of the company, it’s industry and it’s potential. But, we always look first at the management and the business plan. Without quality management and a sound business plan, the path for success becomes arduous and one we don’t like to take.
Our portfolio continues to make us money. We are up 23% on average for our recommendations. This is better than the overall Russell 2000 and we are very pleased with performance so far.
Here are the overall results to date:
And, here are the individual company updates:
AQMS: Expectations are running high for Aqua Metals and it’s certainly getting reflected in the share price, which continues to climb. Tailwinds just had an exclusive CEO interview with Stephen Clarke and that’s available for viewing here. He does a great job of laying out the bull case for the company.
BTI.V: biOasis stock has been treading water with no visible catalysts to drive things in the near term and some investors selling out before year end. However, no visible catalysts, doesn’t mean “no catalysts”. We fully expect biOasis to have some major partnership announcements in the future and these should be meaningful for the shares. If you wait to see the deals, you’ll likely miss the move. Best to be early in this one, as the opportunity is so big.
ESTE: Earthstone shares have backed off slightly since the last update, but this is to be expected after the large move the shares have had since their announced acquisition of BOLD Resources. This company is undervalued, as can be seen here, and both ESTE and oil in general should be solid performers in 2017…in Tailwinds’ opinion at least.