Saturday, May 28, 2011

Transit Holdings Research Report

  • Taylor Collison has released a research report on Transit Holdings (TRH)
  • Research report dated 25/05/2011
  • TRH last trade: $0.805 (28/05/2011)
  • Research link

Wednesday, May 11, 2011

Red October Resources - Good Recipe?

One company that did catch my eye today was Red October Resources (ROS).  The company only listed on the ASX on Monday and closed at $0.295, an excellent premium on it's issue price of $0.20.

Today the share price improved further and closed up $0.07 to $0.37 on higher volumes (over one million units today compared to less than 500,000 yesterday and the day before).  ROS raised $4.5 million in the float and it's only project is via a farm in agreement on a nickel (and other minerals) project with Segue Resources (SEG).  SEG has in my opinion been a bit of a cellar dwellar and underperforming company for some time. 

ROS doesn't seem to have too much going for it now however I'm more interested in it's potential.  Today the company made an announcement which gave us some hint as to what is on the cards.  The prospectus advised us that the company was pursuing new projects in resources sector in Australia and abroad.  Now, today we received the news that the company is focussing on Kazakhstan and has been offered Gold, Silver, Tin, Copper, Manganese, Platinum, Iron Ore and Potash projects.

The announcement was clever in that it served a purpose of letting the market know what the company was about and intending to do especially for those who hadn't heard of this new listing.  In my opinion the farm in agreement with SEG is really just a cover, a way for the company to get a listing approved by the ASX (the ASX wouldnt approve listing of a company that didnt have any assets, yet.).  After the news the buyers started coming.

I think that this one is a good recipe.  Low shares on issue will allow for share price increases to be exaggerated and less sellers to come onto the market and hold the price down.  Those wishing to realise their stag profits may have done so already in the last couple of days.  The speculation and anticipation of what may be vended in will drive the share price.  Does this remind you of anything???...

Fortis Mining (FMJ) listed in December last year.  The company announced early in February the intention to acquire a 'world class' potash asset (02/02/2011 Share price $0.38), late February FMJ signs head of agreement to acquire potash assets in Kazakhstan (23/02/2011 Share price $1.49) and then the share price hits a high of $3.98 on 03/03/2011.