Thursday, April 28, 2011

Speewah Metals Research Report

  • Alpha Securities has released a research report on Speewah Metals (SPM)
  • Research report dated 21/04/2011  
  • SPM last trade: $0.28 (28/04/2011)
  • Research link

Sunday, April 17, 2011

Shell Play Update: Olea Australis

Olea Australis (OLE) is a company that has featured a few times in the shell play stocks that I have been posting about over the last few months.  The company finally has vended in resource projects and gone down what has been a popular path in the last year - West African Gold.

The company made an announcement late on Thursday before trading commenced again on Friday morning.  In what has been some time in the making the company is acquiring two other companies both of which are in the process of acquiring ground in Ghana and Cote d'Ivoire.  The problem is recently there has been unrest and political problems in Cote d'Ivoire with the country almost going into civil war.

The response to the announcement by the market was poor.  Infact the shares barely traded as they were pushed down from $0.003 to $0.002.  I am mixed on this one - positively, it is a case of out with the old and in with the new with the OLE staff to step down and Tim Fry to join as the Chairman.  This is a good scalp as he has excellent experience from working with Lihir Gold.  On the other hand the political conditions in the country and time that the company will be suspended to comply with Chapter 1 and 2 listing rules with the ASX will put some investors off (no trading for up to three months). 

If anything, the shares are at rock bottom.  I tend to think that it is a matter of touching base with this one at a later date, that is, September when the acquisitions have been bedded down.

Wednesday, April 13, 2011

Mozambi Coal Coverage

I recently posted about Mozambi Coal and it's potential.

It appears that there is a few people taking notice of this company and it yesterday received coverage by Proactive Investors Australia, definitely a good sign and positive for the stock.  The article can be found here.

From my observations of the stock in morning it appears that there is a persistent buyer on open which one can only assume is Polo Resources increasing it's position in the company.

Diatreme Resources Research Report

  • Intersuisse has released a research report on Diatreme Resources (DRX) 
  • Research report dated 12/04/2011
  • NPV based valuation: $0.30
  • DRX last trade: $0.094 (13/04/2011)
  • Research link

Tuesday, April 12, 2011

Transit Holdings Research Report

  • RM Research has released a research report on Transit Holdings (TRH)
  • Research report dated 08/04/2011
  • Short term price target: $1
  • TRH last trade: $0.50 (12/04/2011)
  • Research link

Thursday, April 7, 2011

Mozambi Coal: Riversdale nearology

I couldn't help but notice the volumes traded on Mozambi Coal (MOZ) the last few days.  The ASX noticed also and issued a price query accordingly on Tuesday (05/04) quoting the stock price rise from $0.25 on 31/03 to $0.33 on 05/04.  The company advised they had no explanation for the share price rise.

Mozambit Coal is a stock that I have followed for some time.  For those that follow my blog you will have noticed that I do like to investigate shell companies and this was one of them.  Back in the day the company used to hire out dump trucks and had a syringe-type technology (from memory), a strange combination, under the name RTL Corporation (RTL).

This is all before the company acquired coal basin deposits in Mozambique.  By way of acquiring Dugal Pty Ltd the company has acquired two licences including one with ground of 172 square km adjacent to the Riversdale Mining (RIV) block.  Mozambi Coal was suspended for a number of months whilst it complied with ASX compliance rules that apply when a company has a major change in activities.  Before going off the boards the stock was trading at $0.022.

One of the key points here is that whilst the company was complying with listing rules Rio Tinto (RIO) launched a takeover bid for Riversdale Mining (RIV), proving and increasing the value of other tenements in the area.  MOZ shares were reconstructed and when they commenced trading again at the start of March they were at $0.35 or $0.035 equivalent.  That's quite a success for those that purchased before the stock before it was suspended.  Since then the shares weakened which would probably be as a result of some old stale shareholders finally moving on and the whole Japan earthquake crisis.

Things are now definitely starting to hot up.  I think that word is getting around about the potential of this stock.  The recent share price gain could also be explained by the fact that TSX listed company Polo Resources has become a substantial shareholder (11%).  The company advertises itself as "a natural resources investment company focused on investing in undervalued companies and projects with strong fundamentals and attractive growth prospects."  Polo Resources has made excellent gains in other investments such as Extract Resources (EXT) and Caledon Resources (CCD).

MOZ closed at $0.355 today after hitting a high of $0.40.

Buy on dips.

Biota Holdings Research Note

  • RBS Morgans has released a research note on Biota Holdings (BTA)
  • Research note dated 06/04/2011
  • 12 month price target: $2.02
  • BTA last trade: $1.375 (07/04/2011)
  • Research link