Wednesday, January 16, 2013

Artemis Resources (ARV) Star Performer

With the ASX market picking up quite substantially over the last few months confidence is finally starting to return to the small to mid cap sector.  Each and every day we are seeing a number of stocks moving aggressively and volumes increasing.

Today's star performer was Artemis Resoures, up $0.013 to $0.019 (171%) on 61.5 million units.  The company announced that a "Review of Mt Clement Project identifies significant antimony mineralisation". Antimony prices have risen signficantly in the past few years and the company believes that this part of their gold project now warrants drilling.

Coal prices have been in the doldrums and we are seeing recovery in this sector now with good gains made by stocks such as Stanmore Coal (SMR), Continental Coal (CCC) and Universal Coal (UNV) today (all up over 10%).

Wednesday, January 2, 2013

ASX up after Fiscal Cliff avoided

Our market motored along today with the ASX 200 (XJO) adding 57 points or 1.2% and crashing through the 4700 barrier.  This followed news in the US that the senate had passed the bill that will ensure that they avoid crippling tax increases and so called 'Fiscal Cliff'.

Telstra Corporation (TLS) continued on it's way with a rolling high and close of $4.44 (up $0.07).  Resources stocks such as RIO, FMG and NCM all had a very good day.  The banks were slightly stronger.

In the small cap space Drake Resources (DRK) outperformed, up $0.05 or 25.6% to $0.245.  The stock was only $0.062 before Christmas.  On the flip side, Korab Resources (KOR) a stock I mentioned yesterday, suffered profit taking and was down $0.053 to $0.092.

Tuesday, January 1, 2013

Korab Resources Surges on Asset Sale News

The ASX market closed early yesterday at 2:10PM EST however that didn't stop Korab Resources (KOR) surging 116% to $0.145 after making a price sensitive announcement at 12:20PM.

The company has announced that it is selling its Winchester magnesium project in the Northern Territory to an Estonian company for up to $33.2million.  Unlike many takeover deals announced in the resources sector of late this takeover is binding between the parties and subject to regulatory approvals.

The deal will involve Augur Investments Ou paying $16.6 million in cash on closing of the deal and potentially $16.6 million in royalties from mined magnesite.  On paper the deal is good, especially considering that after the share price surge Korab Resources still only has a market value of $17million.  The company also has a gold and silver project in the Ukraine, gold project in Western Australia and other non-core projects.

RCR released a broker research report on the stock on the 14th of December and has a valuation price of $0.21 per share.  The broker believes that the Winchester project is uneconomical so it remains to be seen if Korab Resources will actually receive any royalties in the future.

With Korab Resources currently short on funds it will be interesting to see if a capital raising is completed to get them through to the closing date of 31/03/13 for the deal.

Wednesday, December 5, 2012

QBE Smacked.

The ASX 200 was firmer today at 4520.40, up 16.8 points.

QBE was smacked 4.72% or $0.50 to $10.10 on no news.  The share price hit a low of $10.02 and was lucky not to have dropped below $10 and had the decline exaggerated further by stop losses.

Ten Network Holdings (TEN) went into trading halt before the market opened.  The company will be completing a capital raising.  The Financial Review reported today that the capital raising could be deeply discounted, possibly at $0.20 per share.

Wednesday, August 29, 2012

Syrah Resources (SYR) Nearology Play

Syrah Resources (SYR) is currently in trading halt pending assay results from it's Balama Graphite Project. Major shareholder Copper Strike (CSE) is also in trading halt for the same reason.

One stock that has recently captured attention of the market is Triton Gold (TON). Yesterday's spike of $0.03 or approximately 43% to $0.10 attracted a "please explain" from the ASX to which the company advised it had no news to announce or explanation on the increase in volume and share price. Trading today in the stock was frenetic as it surged to a high of $0.12 with a VWAP of $0.105759 and closing price of $0.094.

Triton Gold is definitely a stock to add to the watchlist. It has a market capitilisation of $10.2 million compared to Syrah Resources lofty $370 million. TON's share price has been running on the fact that it has acquired the rights to purchase 5 graphite prospecting licence applications in Mozambique. The ground is only 2km away from SYR's.

Monday, April 30, 2012

Graphite Frenzy!

In the past there has been uranium and rare earths, today the latest craze is graphite stocks.  Diggers & Drillers has been a publication that has always been a bit of a market mover but last weeks edition has really captured the attention of the market.  I would never reproduce a copy of a research report for legal reasons however one of the stocks mentioned (Syrah Resources - SYR) has uploaded the report 'Welcome to the World of Strategic Mineral Investing' to their website and here is the link.  The report recommended Syrah Resources and included a table of other graphite stocks including:

Archer Exploration AXE
Castle Minerals CDT
Lincoln Minerals LML
Malagasy MGY
Strategic Energy SER
Talga Limited TLG

A quick scan of these stocks today shows that most were up about 20% and very strong.

I don't usually blow my own trumpet and don't necessarily think that I am by saying this, but it was really interesting to look back at a post that I made over one year ago referring to Graphite.  SER was trading at $0.10 pre ex entitlement to Tarcoola shares.  Funnily enough, I also posted about SYR at the start of February when it was at just over $0.40!

I'm not making any recommendations in this post but merely pointing those to the Diggers & Drillers report that haven't read it and reflecting on previous posts.

Tuesday, March 13, 2012

Mercantile Investment Company Limited: Hype

Mercantile Investment Company Limited is a stock that has run from about $0.07 at the end of last month to an intraday high of $0.14 yesterday.  Today the stock closed down $0.01 to $0.12.

The problem is that the stock is running on hype and not fundamentals.  Those readers with a long memory will remember that I used to write about the stock when was under the guise of India Equities Fund.  Whilst those still holding will have made good returns, it has been a long road that Im sure many have turned off sometime ago.

The company is an investment company holding listed stocks including CSE, TCQ, IFL, API and TJN.  It has to be noted that listed investment companies nearly always trade at a discount to Net Tangible Assets (NTA) or NTA backing.  The company has an NTA of $0.0734(31/01/2012) and recently completed a placement at $0.08.

So why does the stock has a premium share price compared to NTA?  It is purely based on the fact that Sir Ron Brierley is on the board and is a renouned investor.  The premium is way too high for my liking.