Element ONE


Issuer: ELEMENT ONE LTD
ISIN Number: VGG299771086
Issue Description: USD CL B SHS
ISO CFI: CICXXX

The S&P 500 index grew by more than 2.5% in April, the VIX (INDEXCBOE: VIX) - volatility index reached its lowest level since September 2018, oil added 5-6% in price and is currently consolidating.

In April 2019, the idea of long buy of Indian TATA Motors (NYSE: TTM) was closed in Element ONE. The target price of $17 (+ 16.28% of the entry point) was reached in 2 weeks. This transaction brought about 1.56% in the cumulative result of the month. Nvidia (NASDAQ: NVDA) shares have not yet reached the target price and are traded on May 8 adding 2-3% of the purchase price. Also in April, Albemarle (NYSE: ALB), one of the largest lithium producers, was added to Element ONE portfolio. A detailed analysis of the investment idea is available on our website or on the website of Tinkoff Bank, which recently began to use our analytics to provide recommendations to its customers.

The aggregate increase of the fund NAV for the month amounted to slightly more than 3%. We are watching the new round trading agreement negotiations between the US and China and believe in positive resolving of the situation. May 2019 might become a month of market correction and consolidation for further the S&P 500 movement to 3000 points. Also, our analysts are carefully studying the aerospace industry and assess the possibility of opening a short position on Airbus (EPA: AIR) due to the closure of the A380 production, as well as a long position on Boeing (NYSE: BA) in anticipation of correction after the ban on the operation of the Boeing 737 MAX.
 

Mining.VG


Issuer: RAM Data Technologies INVT LTD
CUSIP Number: G7369L 106
ISIN Number: VGG7369L1067
Issue Description: EUR CL C SHS
ISO CFI: CICJMS

Cryptocurrencies continue to grow. The price of the main digital currency, Bitcoin, as of the end of the day on April 30 was equal to about $5250, which is about a 28% increase to the closing price in March 2019. Our forecasts on the movement of BTC value to $6000 after consolidation at the $5000 mark in the middle of the month were 100% fulfilled. Already at the time of the preparation of this review, Bitcoin makes attempts to reach the price level in the region of $6000.

It is very important to note that the growth of Bitcoin takes place in the presence of a rather negative series of events: the claims of the US Attorney's Office to Bitfinex about fraud in the amount of about 900 million US dollars; another hacking of one of the largest exchanges - Binance for an amount of 41 million US dollars (by the way, and how can we not mention that we repeatedly recommended not to use the accounts on exchanges for keeping cryptocurrencies, but to store crypto assets in non-custodial wallets (without nominal holding by the exchange), for example, such as RAISON.AI).

But even despite such large negative events, RAISON.AI’s artificial intelligence engine assesses market sentiment as neutral with a transition to moderately positive. The further movement of the cryptocurrency market will be clear in the coming days, depending on the breakthrough of an important psychological level of $6000. If the bears fail to break the bulls attempts to break through and BTC consolidates above this mark, then in May we can talk about a new long growth cycle.

The positive dynamics of the cryptocurrency rate also made a positive effect on the Mining.VG fund. The third month in a row, the fund's share price shows an increase - April 2019 brought fund’s shareholders a cumulative yield of about 2.6%, taking into account the accrued coupon, compared to the previous month (+ 0.51% excluding the coupon). And over the past three months, the yield, taking into account the coupon, was about 5% (or 20% per annum). In April, the proceeds from mining amounted to about 11000 EUR, which gives the margin of the operating business with the current cost of electricity in the amount of about 45-50%. We believe that given the current trend in the value of BTC and other currencies, there is an excellent opportunity window for investing in new mining facilities and buying shares of the fund with both new and current investors of the fund.
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