Sunday, February 20, 2011

Advanced ASX Shell Plays

This is my final post exploring some of the shell plays listed on the ASX.  In my earlier posts I took a look at those companies that are still a little unloved and well away from volumes being traded that mean anything.  These next three shells that I take a look at today are what I would say are in the developed stage and possibly known to you for the reason that they are attracting interest and have seen some excellent gains from their lows already.

This company is probably as advanced as a shell can be.  The market capitilisation is a staggering $17 million which means the share price is a bit overcooked considering no project has yet been acquired.  The company has confirmed it's direction and advised the market it is specifically looking at coking coal projects in Mongolia.  They currently have a team of geologists assessing licenses so a project may not be too far away.  C @ Limited last traded at $0.037 after coming up from lows of just under a $0.01 in August last year.  If anything, this goes to show that if you get in early there can be excellent gains to be made in shell companies.  This stock was once unloved too - in August last year it went days without trading and when it did the volume was maybe 100,000 - 300,000 units.

This is another company that has already had strong share price gains with the share price appreciating from $0.002 in August to the current price of $0.011 giving the company a market cap of $12 million.
SLT has raised funds a few times last year to keep itself going whilst it searches for new opportunities.  There has been no indication as to which direction the company is headed.  The company appointed new directors in September who have experience in backdoor listings.

ROB has been on the radar of quite a few traders recently.  It has had a couple of share price breakouts resulting in share price queries (or speeding tickets) from the ASX.  The company has given the standard response - we know nothing!  The share price was seriously overbought when it hit $0.03 and it has since backed off to $0.016.  The company used to operate stockbroking and wealth management businesses and provide corporate advisory services all of which have now been sold.  Considering these businesses are all market related I would imagine that the board would have very good contacts in the industry which is a positive.  After all, and from my experience in the industry, everyone knows everyone.

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