Diversification: Managing Investment Risk In Uncertain Times
Risk Reduction Is Key To Success
We have all heard that old saying, “don’t put all of your eggs in one basket,” which is an idiom that means “don’t risk everything by committing to one plan or idea”, or for the purposes of investing… DIVERSIFY.
A common problem faced by investors is how to diversify their portfolio in a manner that still provides enough exposure to potential upside profitability yet de-risks major losses over the long term.
Many public companies are faced with the same problem, how to diversify their business or investing strategy to reduce risk, and still remain viable to the investing public.
Diversification reduces risk by investing in vehicles that span different financial instruments, industries, and other categories. This is hard for many public companies to achieve due to their limitations based on their business plan and industry vertical. For example, a technology company cannot simply deviate from their core business to go invest in a lithium exploration company.
One form of investment that gives investors the diversification needed to be successful is to invest in an ETF.
(Terms and conditions – Institutional | BlackRock)
An exchange-traded fund (ETF) is a type of pooled investment security that operates much like a mutual fund. Typically, ETFs will track a particular index, sector, commodity, or other assets, but unlike mutual funds, ETFs can be purchased or sold on a stock exchange the same way that a regular stock can.
While ETFs have proven to be good investment tools they can often be quite expensive and again focus on only one sector or asset group per ETF.
What Is An Investment Issuer?
One solution for investors looking for a single stock with a diversified portfolio of companies is oto find an Investment Issuer that suits their investing criteria.
An Investment Issuer means a corporation, the shares of which are listed on a stock exchange, engaged in the business of investing in the securities and assets of, or lending to, other corporations whether or not their shares are listed on a stock exchange or not.
Investment Issuers use their stock treasury to invest in companies that meet their investing criteria and strategy. This is an important part of their strategy as they are likely to avoid debt by issuing stock in exchange for ownership in all or part of their investment target. A portion of the issued stock is typically used to raise capital and it is with that capital that the target investment is able to further conduct and grow their business which in turn should increase the value of the Investment Issuer over time.
Most Investment Issuers have both an Investment Guideline or Strategy and Investment Committee that oversees what kind of investments are made, into which sectors, and what level of support or aid is committed to each target investment company.
The role of the Investment Issuer often goes beyond providing capital and may include leadership, guidance, further capital investment through institutions or family offices, and often results in direct day-to-day involvement within the company.
Having certain oversight can encourage the accelerated growth of many companies much in the same way that VC firms incubate their investment targets in order to exit through an acquisition event or IPO strategy.
One way that Investment Issuers often look to exit from the initial investment can be to create an entirely new stand alone public company that lists on a stock exchange in order to further propel the operating business. The Investment Issuer would hold a retained ownership interest in the stock of the new public company. Many times, this strategy occurs when the target asset has proven their business out to the point where it is a viable and economically positive entity.
Creating Shareholder Value Through Asset Advancement
One Investment Issuer, whose shares are listed on the Canadian Securities Exchange, is aggressively growing their portfolio of assets.
Global Care Capital, traded under the tickers (CSE: HLTH), (OTC: RSCF), and (FSE: L6V2) is a Canadian Investment Issuer with a diversified portfolio of investments that is rapidly gaining interest among investors.
(CSE: HLTH), (OTC: RSCF), (FSE: L6V2)
Global Care Capital’s investment strategy focuses on five major industry verticals:
- Medical Technology
- Resource Mining, Digital Mining
- Alternative/Renewable Energy
Each of these industry verticals are expected to play major roles within the market in 2023 with many analysts and investing professionals suggesting that these verticals will be key contributors to our economy.
Chief Executive Officer
Charles Hugh Maddin is a businessperson who founded Mineral Hill Industries Ltd. and Quarda Aggregates, Inc. and who has been the head of 9 different companies. Mr. Maddin occupies the position of Chairman & Chief Executive Officer of Quadra Coastal Resources Ltd., Chairman of Maple Leaf Systems, Inc., Chairman & Chief Executive Officer at TA Mineral Resources Ltd., Chief Executive Officer & Director at Global Care Capital, Inc., President & Chief Executive Officer at Cambrian Capital Corp. (Canada) and President of Quarda Aggregates, Inc. Mr. Maddin is also a Member of the Law Society of British Columbia and on the board of 6 other companies.
In his past career he held the position of Chairman & Chief Executive Officer of Hi Ho Silver Resources, Inc., Director at International Bethlehem Mining Corp., and Chairman for Mineral Hill Industries Ltd. 1
Global Care Capital Inc. announced the appointment of Mr. Denis Hayes to the board of directors of Global Care Capital Inc. with immediate effect. Mr. Hayes is an experienced financier and underwriter of venture capital companies. He worked as a registered Investment Advisor for 25 years with Canaccord Capital in Vancouver B.C., specializing in equity underwritings. 2
Lawrence Cofield has many years of experience in the IT industry and is considered a global expert in blockchain mining.
He originally studied Telecommunications at the Thompson Rivers University. Then went on to earn several professional certifications including Microsoft Certified Professional, CompTIA A+, Project Management Professional (PMP) & ITIL v4.
Lawrence has extensive knowledge and expertise in blockchain technologies. Specifically in the area of data center deployments, operations and management relating to Bitcoin ‘mining’. 3
Global Care Capital’s primary focus is to deliver above average returns by making investments in companies involved in sectors that management believes are innovative and have the opportunity to generate long term returns.
The Company’s primary focus is on early and growth-stage companies in a range of sub categories, including:
• Clean energy;
• Crypto currency mining;
• Crypto currency royalty streaming;
• Natural Resources
Global Care Capital’s investment activities are guided by several key objectives, including:
- FInding and investing in opportunities with the potential to deliver a higher return than most public market investments, by investing mainly in privately held (Seed, Series A and B), early stage, (sometimes pre-revenue) companies. These sought out companies are involved directly or indirectly in the biotechnology, blockchain, clean energy, crypto currency, healthcare, and natural resource sectors.
- To invest in companies with a large market opportunity, well-conceived strategy for commercial success, and a strong management team to execute that strategy.
- To seek investments that management believes offer an eventual “path to liquidity” (i.e., a means of converting the Company’s investment to cash over the long term, typically via public market listing(s), or through the entity invested into being acquired). Global Care Capital may invest in public securities from time to time, as opportunities arise.
- To look for opportunities to enhance its investment returns through active support of its portfolio companies by positioning itself in advisory, managerial and/or board positions.
Global Care Capital’s Investment Committee considers various factors in relation to any particular investment, including:
- Intrinsic value of an investment target company’s assets or potential with focus on
qualitative inputs that might lead to a future competitive advantage.
- Business strategy of an investment target company that aligns with Global Care’s culture and goals as defined by the Board.
- Proven management, clearly defined management objectives and strong technical and professional support.
- Future capital requirements to develop the full potential of its business and the expected ability to raise the necessary capital.
- Anticipated rate of return and the level of risk.
- Financial performance.
- Exit strategies and criteria.
- Growth – whether there is current production development in place for new items and a
- high level of research and development on new products; and
- Analysis of gross margins, timeline to break-even or profits.
Current Investment Portfolio 5
ASIC Power Company gives mining companies access to its innovative cryptocurrency mining streaming contracts and chip pipeline through its partnerships with leading hardware producers.
It intends to identify low cost, renewably powered mining operations to implement new financing strategies in the form of royalties and stream contracts globally.
CCM Technologies Inc. is a digital asset technology company with a focus on providing infrastructure for the blockchain ecosystem and mining of cryptocurrencies.
Pembrook Copper Corp. is a mineral exploration company with a focused team of geologists engaged in the identification, acquisition, evaluation, and advancement of mineral properties in Peru. Pembrook is exploring for copper, gold, silver, nickel, and other metals.
Virax Biolabs provides tools for someone to determine their current immune status and identify ways to strengthen and improve areas of immune function that may be weak or underdeveloped due to the lack of prior antigen exposure.
They then provide tailored advice through the Virax Immune app on how to boost immune function. This may be through nutrition and nutraceuticals, lifestyle choices or vaccinations.
MK HIGHWAY CORP.
MK Highway Corp. (“MKHC“) is a digital asset company. MKHC’s business focuses on digital asset mining, with a complete infrastructure for, and demonstrated history of, profitable Bitcoin mining strategies. The company’s profitable Bitcoin mining rests on an architecture that includes cost-effective miner acquisition, competitive hosting and electricity rates, digital asset treasury management, and fiat on- and off-ramps- the combination of which makes MKHC a complete framework for mining Bitcoin (or any digital asset based on the SHA-256 algorithm).
Strong Forecasts, Strong Growth Strategy
Global Care Capital is poised to take advantage of what many analysts believe to be the perfect “crypto storm” coming our way in 2023. One analyst’s predictions for 2023 is that BTC will move higher in 2023, with a base case target of 40k which is the 90-week moving average. 6
(SourceCrypto Outlook For 2023 – Forbes Advisor Canada)7
Demand for metals related to the global energy transition will accelerate over the coming years, in fact EVs and renewable generation are more metal-intensive than fossil fuel-based alternatives, which will support metals demand as the world transitions towards a carbon-free economy. Many top analysts believe this will lead to a six-fold increase in demand for minerals by 2050 compared to current levels, according to the International Energy Agency (IEA).8
As the demand for renewable energy sources, and thus the long-term demand for metals increases, this is the time to get in on the ground level as an early stage adopter.
Renowned investment pundit Warren Buffet once said “Someone’s sitting in the shade today, because someone planted a tree a long time ago” and this long term investment strategy is certainly applicable here.9
As rapid demand growth may not necessarily be met with an equivalent supply-side response, industry professionals believe that 2023 will be a bull market for explorers and miners that contribute to the industrial and energy metals sectors.
1 Charles Hugh Maddin – Biography (marketscreener.com)
2 Global Care Capital Inc. Appoints Denis Hayes to the Board of Directors | MarketScreener
3 (13) Lawrence Cofield, PMP | LinkedIn
4 Our Portfolio – Global Care Capital (hlthcapital.com)
5 Cryptocurrency Predictions For 2023 – InvestingHaven
8Energy Transition Boosts Global Long-Term Demand for Metals (fitchratings.com
9Warren Buffett: Someone’s Sitting in the Shade Today Because Someone Planted a Tree a Long Time Ago – Benzinga
Digital Marketing Agency of Record: GloBull Technologies Inc., (“GloBull”).
1) The author of the Article, or members of the author’s immediate household or family, do not own any securities of the companies set forth in this Article. The author determined which companies would be included in this article based on research and understanding of the sector.
2) The Article was issued on behalf of and sponsored by Global Care Capital. GloBull, has or expects to receive from Global Care Capital ZERO COMPENSATION.
3) Statements and opinions expressed are the opinions of the author and not GloBull, its directors or officers. The author is wholly responsible for the validity of the statements. The author was not paid by GloBull for this Article. GloBull was not paid by the author to publish or syndicate this Article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. GloBull requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. GloBull, relies upon the authors to accurately provide this information and GloBull, has no means of verifying its accuracy.
5) GloBull, and its respective directors, officers and employees hold no shares for any company mentioned in the Article.
6) This document contains forward-looking information and forward-looking statements, within the meaning of applicable Canadian securities legislation, (collectively, “forward-looking statements”), which reflect management’s expectations regarding Global Care Capital’s future growth, future business plans and opportunities, expected activities, and other statements about future events, results or performance. Wherever possible, words such as “predicts”, “projects”, “targets”, “plans”, “expects”, “does not expect”, “budget”, “scheduled”, “estimates”, “forecasts”, “anticipate” or “does not anticipate”, “believe”, “intend” and similar expressions or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative or grammatical variation thereof or other variations thereof, or comparable terminology have been used to identify forward-looking statements.
These forward-looking statements include, among other things, statements relating to:
(a) revenue generating potential with respect to Global Care Capital’s industry;
(b) market opportunity;
(c) Global Care Capital’s business plans and strategies;
(d) services that Global Care Capital intends to offer;
(e) Global Care Capital’s milestone projections and targets;
(f) Global Care Capital’s expectations regarding receipt of approval for regulatory applications;
(g) Global Care Capital’s intentions to expand into other jurisdictions including the timeline expectations relating to those expansion plans; and
(h) Global Care Capital’s expectations regarding its ability to deliver shareholder value.
Forward-looking statements are not a guarantee of future performance and are based upon a number of estimates and assumptions of management in light of management’s experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances, as of the date of this document including, without limitation, assumptions about:
(a) the ability to raise any necessary additional capital on reasonable terms to execute Global Care Capital’s business plan;
(b) that general business and economic conditions will not change in a material adverse manner;
(c) Global Care Capital’s ability to procure equipment and operating supplies in sufficient quantities and on a timely basis;
(d) Global Care Capital’s ability to enter into contractual arrangements with additional Pharmacies;
(e) the accuracy of budgeted costs and expenditures;
(f) Global Care Capital’s ability to attract and retain skilled personnel;
(g) political and regulatory stability;
(h) the receipt of governmental, regulatory and third-party approvals, licenses and permits on favorable terms;
(i) changes in applicable legislation;
(j) stability in financial and capital markets; and
(k) expectations regarding the level of disruption as a result of CV-19.
Such forward-looking information involves a variety of known and unknown risks, uncertainties and other factors which may cause the actual plans, intentions, activities, results, performance, or achievements of Global Care Capital to be materially different from any future plans, intentions, activities, results, performance, or achievements expressed or implied by such forward-looking statements. Such risks include, without limitation:
(a) Global Care Capital’s operations could be adversely affected by possible future government legislation, policies and controls or by changes in applicable laws and regulations;
(b) public health crises such as CV-19 may adversely impact Global Care Capital’s business;
(c) the volatility of global capital markets;
(d) political instability and changes to the regulations governing Global Care Capital’s business operations
(e) Global Care Capital may be unable to implement its growth strategy; and
(f) increased competition.
Except as required by law, Global Care Capital undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future event or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. Neither does Global Care Capital nor any of its representatives make any representation or warranty, express or implied, as to the accuracy, sufficiency, or completeness of the information in this document. Neither Global Care Capital nor any of its representatives shall have any liability whatsoever, under contract, tort, trust or otherwise, to you or any person resulting from the use of the information in this document by you or any of your representatives or for omissions from the information in this document.
7) Any graphs, tables or other information demonstrating the historical performance or current or historical attributes of Global Care Capital or any other entity contained in this document are intended only to illustrate historical performance or current or historical attributes of Global Care Capital or such entities and are not necessarily indicative of future performance of Global Care Capital or such entities.
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