2 recent ASX winners looked like this

Yesterday I said there are three factors that you can look for in ASX small caps that give them a better chance of doing well on the charts.

1. Tight Share Registers: I want to see a Top 20 that holds 50-60% of the stock. When good news hits…say, a Department of War grant or a strategic offtake, you want a shortage of paper on the market to drive the price vertical.
2. Skin in the Game Management: I want MDs who are buying on market and hold a good chunk themselves, not issuing themselves options. If they don’t believe in the project enough to put their own cash up, why should you?
3. Low Enterprise Value (EV): The best leverage comes from buying assets for cents on the dollar compared to their resource value. Companies where the cash backing is high and the market cap is not inflated.

These three factors are part of a broader 5C system that I employ in my Fat Tail Micro-Caps service.

So today I’ll show you two examples from this service, where the stocks had these characteristics.

Example #1: Uranium developer

Let’s take a look at the first one, Bannerman Energy [ASX:BMN].

BMN has a nice, low SOI (Shares on Issue) of ~207M shares floating around on the market.

You don’t want to see billions of shares – this is a bad sign that the company has done lots of dilutive raises.

It also has a solid concentration of Top 20 shareholders, who in June of this year held ~76% of the register:

Source: ASX

As for skin in the game – management, particularly Executive Chairman Brandon Munro who has steered this company for a long time, looks to hold about ~1.8M shares.

That’s nearly 1% of a now ~$631M company – meaning he has about $5M riding on the success of this company.

That’s not chump change.

It has $111M in net cash as of 30 September, with a market cap of $631M. That’s an EV of $520M.

Not bad for a company with a Total Resource of 207.8 Million pounds (Mlbs) of contained U₃O₈ approaching a Final Investment decision on one of the world’s largest, most advanced uranium development assets.

We entered at $1.75 in mid-2023

The share price went as high as $4.87 in May of last year and has oscillated quite a bit, but I’m happy to say we are up ~65% across two legs of the trade and holding one third of our position after taking profits along the way.

We now get to hold into, ideally, a major uranium price run and BMN successfully reaching Final Investment Decision and constructing the mine.

Here’s another example that meets the criteria.

Example #2: Gold and Gallium in Arizona

Next up is G50, which has a relatively low SOI of ~200M shares on issue.

When I first recommended it to members, its Board and Management held ~50% of the register.

Managing Director Mark Wallace now holds ~4.3M shares, worth ~$2.5M.

That shows commitment.

As for EV, it has $9M in cash against a ~$115 million market cap. It’s obviously not as attractive now after the market woke up to the story.

It was much better previously, when we entered in July ahead of the gold drilling results, which started to come and revealed potential for a +1Moz resource.

Either way, I’m happy to report that after some profit taking on the first third of the trade, members of the service are sitting on a ~100% win in 5 months across the position.

Just goes to show you what’s possible with a bit of digging, and attentiveness to key features of strongly performing companies.

Try it at home, or better yet become a member of Fat Tail Micro-Caps.

Speaking of which…

Keep your eyes peeled for a special Christmas present in your inbox over the break period.

Hint: it will be included in my 2026 Outlook piece.

Happy holidays too, thanks for reading.