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.
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