Chris Andrews' Top Picks for 2023

Before founding Clarmond Securities, Chris Andrews spent 14 years in the investment world. There he gained a great interest in Canadian stocks, specifically in the commodities sector. Now, he spends his time working as the managing director of Clarmond, a boutique wealth management and investment advisory firm.

Clarmond runs on a four-pillar philosophy which includes:

• Independence & Continuity
• Service
  
• Focus
• Creative Thinking

Currently, the company manages US$100 million and takes clients all around the world, though they take a boutique approach and focus on tailoring their investment to what will work best for each of their clients.

In terms of investment types, Andrews told Streetwise the majority of his investments include ETFs. He commented, "Invest through ETFs, and funds and collectives because it takes all the hassle out of it. But then this edge, this edge of the portfolio, with commodities, I like to play in small companies because I think if you get the right management team and the right people, you can get a really great performance. And you can really get five to ten times your money."

Because of this, we wanted to reach out and speak with him about which individual companies, Andrews believes are set up to succeed. 

Stocks Set Up for Success

Andrews went on to speak about how commodity stocks can be beneficial even when the economy isn't looking too good.

He said, "The markets been terrible for the last past two or three years, and commodity companies have been chucked in the bin,  and small-cap commodity companies even more so. Yet, this is great. Because obviously now you can make your fortunes in or you can build your fortunes in." He said, with the market the way it is, it could be a time to get positions, which he believes are set up nicely for when things turn around.

Slave Lake Zinc

One of these positions is Slave Lake Zinc Corp. (SLZ:CSE). Slave Lake is a Canadian mining cooperation named after the lake near its largest claim in northern Canada. 

"I like it because it's cheap," Focaud said. "It's gone very cheap, like a lot of these Canadians, and I really liked the management because, to me, management is everything." Speaking of management, Focaud was particularly impressed by how methodical and unrushed the team was in setting up this project.

"What I really liked about it," he said, "was that they've taken a lot of time to get to this position and this place, and they haven't rushed it."

Andrews was also impressed by the company's relationship with the natives in the area. He said,  "That's a really powerful thing to have because, once you're on the inside there, a load of funding becomes available, and a load of everything becomes a lot easier."

Slave Lake also has a myriad of resources are its disposal. "It's not just zinc," Foucaud said. "It's copper; it's magnesium, manganese; it's graphite. By the sound of it, you scratch the surface up there, and you can find another mineral. So that's also amazing. So it just looked geologically like a very interesting area, on top of a really good team . . . what's not to like?"

Finally, Andrews made a point to reiterate the cost of the stock. "It's relatively cheap, and it's well managed, so there's a good chance that if they  execute their plan, then you've got a really great asset here that they're going to bring forward."

According to Reuters, 38.11% of Slave Lake's stock is owned by management and insiders. Director and CEO Ritch Wingham has 9.32%, with 4.80 million shares. Director Glen MacDonald has 9.28%, with 4.78 million. President Jaskarn Singh Rai has 9.16%, with 4.72 million. Director Brandon Maxwell has 8.75%, with 4.51 million shares, and CFO Peter Cummings has 1.61%, with 0.83 million.

61.89% is in retail. 

Slave Lake has a market cap of US$4.41 million and trades in the 52-week range between CA$0.0115 and CA$0.1429.

Royal Helium

Another position Andrews spoke highly about was Royal Helium Ltd. (RHC:TSX.V; RHCCF:OTCQB). Royal Helium is a Canadian helium exploration and development company. The company primarily focuses on primary helium in southern Saskatchewan. Currently, Royal Helium holds the place as one of the largest helium leaseholders in Canada, which is one of the reasons it piqued Andrews' interest.

Royal Helium also has both helium and zinc, which Andrews pointed out "they're great commodities that are not the ones people would immediately associate with each other."

Originally, Andrews invested in Royal Helium when it was under a different name — Imperial Helium. 

Like Slave Lake, Andrew found himself impressed by Royal Helium's management team. He said, "That's why I like Canada because the management teams in Canada have been around the block along many times, they've seen many cycles, so they know what they're doing."

Andrews also commented on the current helium market. *insert helium market.* He said, "People are going to need this helium."

*Insert information about deal with nameless company*

While Andrews does not know for certain who this company is, he has his guesses. He said it could only be one of three companies: Nasa, Virgin Galatic, or Space X. His number one pick is Space X. Andrews noted,  "I'd be most delighted if it was Space X because that seems to have a bit more momentum with it."

Andrews overall believes in Helium's opportunity. He ended by saying, "It's going to steadily grow. It's good. It's going to be the main helium play for you know, for years to come."

According to Reuters, 4.59% of the company's stock is held by management and insiders. Top shareholders include director Samuel “Kyler” Hardy, who has 2.28%, with 5.45 million shares. President and CEO Andrew Davidson has 0.87%, with 2.08 million shares, and CFO Jeff Sheppard has 0,62%, with 1.48 million shares 

95.41% is in retail.

Royal Helium has a market cap of CA$79.72 million and trades in the 52-week range between CA$0.20 and CA$0.52.

Soperior Fertilizer Corp.

Last, Andrews spoke about Soperior Fertilizer Corp. (SOP.H; TSX). Soperior is an exploration and development company, and a near-term producer of SOP (sulfate of potash) fertilizer, alumina, and sulphuric acid from its massive Blawn Mountain Alunite resource asset in Utah.

Andrews said, "Superior fertilizer is exactly what it says. They have this gigantic asset called Blawn mountain answer seems to be a lump of potash, as far as I can tell, and potash is very valuable."

He noted that Soperior had a bit of bad luck in the past, with the untimely death of its CEO. However, Andrews believes the new CEO, Andrew Suarez, could bring the company a lot of success.

The company is in the process of closing a joint venture agreement with an unnamed strategic partner to get a first-phase production facility financed and constructed.

According to Andrews, Suarez has been attempting to raise money and develop this for the past couple of years. So far, Andrews noted, the company doesn't have the infrastructure it needs. However, he sees promise on the horizon. 

Andrews noted, "What we know is that they've got a joint venture with an unnamed group and I can't get at the group as much as I'd like to but it's got a lot of money . . .  The deal there is that the people are going to come in and pay off Soperior's debt, leave them with about US$4 million free in the bank, and they're going to initially own 50/50 on the joint venture. But then when the company puts in US$400 million to get the thing into production. Superior we'll be left with a 15% royalty share in this asset, which could be worth billions and billions and billions and will be very cashflow dividend money."

Andrews noted that the company has been on the verge of making this deal for years. He said, "We've been on the verge of having this deal for the last year for two or three years. I think we really are now on the budget. But they're all there's a lot of hidden value in all of those things."

Andrews noted when it comes to recommending the above stocks, "I tried to have a little bit of each of them and all my client portfolios, but Soperier could be the one that budget moves first like really moves first."

According to Reuters, 0.12% of the company's stock is held by management, with CEO Andrew Squires owning the entire 0.12%, with 0.32 million shares. 

The rest is in retail.

 What's Next?

As the market moves, so will Andrews. While he cannot say exactly where it will take him, he does know that his picks will always be centered around Clarmond's philosophy.

In the words of the company, "The landscape of investment and business has changed radically over the last 20 years; the next 20 years will likely have even greater change. Clarmond will remain alert to these movements and will endeavor to stay one step ahead of the marketplace."

Disclosures:
1) Katherine DeGilio wrote this article for Streetwise Reports LLC. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.

2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with: Slave Lake Zinc Corp. Please click here for more information.

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5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Slave Lake Zinc Corp. and Royal Helium Ltd., companies mentioned in this article.