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.

Tuesday, February 14, 2012

Exoma Energy (EXE)

Exoma Energy Limited (EXE) is definitely one to watch in short to medium term. The company ticks many boxes in the fundamental and technical department of analysis. The stock price has seen a nice steady increase in volume and price of late unlike many stocks which have overcooked and received ASX price queries.

Interest in CSG in the Galilee Basin is on the increase again. Today, Westside Corporation (WCL) received a unbinding takeover bid of $0.65 per share. This company has projects both in the Galilee and Bowen Basins. Exoma Energy in the meanwhile has appointed a corporate adviser to handle further growth and advise "on appropriate corporate strategies in light of the growing interest in Exoma's portfolio of prospective hydrocarbon resources, including conventional oil, shale oil and associated gas and coal seam gas"  This statement is very suggestive.  It suggests that other companies are taking a close look at their assets and have been making enquiries.

Considering that EXE already has China National Offshore Oil Corporation (“CNOOC”), a highly regarded department of the China government, providing $50 million in funding for a 50% share in its ATP's they must have receive quite a lot of interest to appoint a corporate adviser.  After all, why would you make such an appointment when you are very much funded?  Why the need to promote your company to instituitions when you are at such as early stage?

It must also be noted that EXE is awaiting Queensland government granting of further tenements which could provide positive newsflow.

The stock closed down $0.005 to $0.195 today.

Plenty of Action!

The ASX 200 was much weaker today with the indice down 1% or just over 42 points.  Isn't it interesting now that the Greek bailout has been passed by their parliament that the negative headlines are once again coming out again?  Today I read all the negatives such as the rioting in the streets of Athens and that Greece will still have an orderly default by the end of year.

Back in the small cap space there is still plenty happening!  Confidence has definitely come back in this area.

Maverick Drilling (MAD) had its first down day in almost a week.  The stock closed down $0.03 to $0.69 after shooting to a high of $0.835 earlier in the day after responding to an ASX price query.  In what must have been the longest response I have ever seen (4 pages) the cites many reasons including broker research, publications and past announcements.

In the uranium sector Uranex Limited (UNX) was up 32.% to $0.45 on volume of 2.4 million units.  The company is currently in discussions with unnamed Chinese parties regarding joint ventures for its Uranium project in Tanzania.  Fellow uranium Alliance Resouces (AGS) was also strong and up $0.05 to $0.41.

Saturday, February 11, 2012

Hastings Rare Metals Research Report

  • RM Research has released a research report on Hastings Rare Metals (HAS)
  • Research report dated 06/02/2012
  • Rated as Speculative Buy
  • HAS last trade: $0.17 (10/02/2012)
  • Research link


Thursday, February 9, 2012

Balamara Resources - 'Nearology Play'

Balamara Resources (BMR) is a stock that I have been monitoring over the past week.  There hasn't been a massive volume day that has caught my attention like some of the other stocks I have been posting about lately.  The rise has been a consistent one with increasing volumes.

The ASX is on the ball.  Today the company received a price query asking why the stock has moved from $0.01 on 03/02/2012 to $0.016 today.  Balamara Resources had no explanation and referred the ASX to recent announcements.

The company used to go by the name of Sultan Corporation (SSC) however has now rebranded itself.  It depends on how you are playing a stock that will determine if this speeding ticket is a positive or negative.  Those that took a position as a daytrade will probably be disappointed as inevitably a stock will experience weakness after a speeding ticket.  There is the perception that a company cannot announce any price sensitive news for a little while after responding.  If you dont fit into the above category then I think it's a positive...

The stock may be weak for a day or so which could be a good chance for those wishing to open a position before it's next upward move.  I do think that there is a bit of news flow for this company to look forward to.  For a starter, the company is about to commence drilling at it's base metals project in Poland.  For those that like to take a punt on 'nearology' plays then it may be worth researching further.  The company claims it's project lays immediately adjacent to Europes biggest Copper producee (KGHM).

On another front the company is in good communications with the Togo government regarding the tender process for a phosphate deposit.  This news, however, could be months away.

Tuesday, February 7, 2012

Bandanna Energy - Bidders back?

I was alerted to Bandanna Energy (BND) recently when the stock had a massive volume day of over 26.2 million units Thursday last week (02/02/2012).  The stock surged up $0.105 to $0.76 on that day.  Considering the stock hasn't seen that much of a daily volume for years it went on my watchlist.

I've been looking further into the stock over the last few days.  Last year the company effectively put itself up for sale with potential acquirers running the ruler over the company.  Bandanna Energy also had employed corporate advisors to assist in the process.

Unfortunately the bidders evaporated and the company put that down to deteriorating and/or poor conditions on equity and credit markets.  In the end BND raised $100 million in funds from Insto investors at a price of $1 per share plus a further $1.1 million from retail investors.  The insto entitlement offer was oversubscribed however the retail entitlements were poorly subscribed to as the market price dipped below $1 issue price.

One has to wonder if a bidder is revisiting BND.  After all, market conditions are a lot brighter.  The ASX trading band has tightened to 4200 - 4300, there are excellent signs coming out of the US and a Greek debt default appears slimmer.  Interestingly enough the RBA decided today to keep the cash rate on hold citing these reasons, which startled the market.  The ASX 200 dropped after the news whilst the Australian Dollar surged.

The volume on 02/02/2012 could be a very good signal.  Should a bidder come for BND you would expect that it would have to exceed the recent raising completed at $1 which leaves a lot of upside.  You've also got to remember that even if a bidder doesn't appear the stock was over $2 only six months ago.  There's recovery in it at least.

Sunday, February 5, 2012

Jacka Resources & Pancontinental Oil & Gas Link

Pancontinental Oil & Gas (PCL) is a stock I mentioned on Thursday night as one to watch on Friday after it came up on my scan.  The stock managed to hold it's strong gains from Thursday and finish even at $0.11 on Friday (03/03/2012), again on good volume.  The stock hasn't gone unnoticed with the ASX as after market a price and volume query was issued and responded to.  The company advised there was nothing that needed to be announced to the market.

Hartley's issued a research note on the company earlier in the week which may have prompted more interest in the stock.  Hartley's rates the stock as a Speculative Buy and has a six month target price of $0.23 due to a number of catalysts.

It is interesting to note that Jacka Resources (JKA), a stock first mentioned in a July post last year (also $0.11 at the time), had it's shares up $0.01 to $0.165 on Friday on good volume.  So the link?  Both companies have a joint venture to pool resources to evaluate petroluem acreage opportunities in East Africa.  I am wondering if JKA has started running as a result of PCL running and the market is simply guessing that they may have finalised an application for an onshore asset.

Considering PCL received a 'please explain' from the ASX on Friday it will probably take the wind out of it's sails.  If JKA continues to rise there may be some news directly and only related to JKA around the corner.  If JKA backs off then we know the market was only speculating on joint venture.

One thing is for sure, JKA technically looks great so if the rise is not broken then definitely keep an eye on it!

Thursday, February 2, 2012

Lynas Corp Fires up whilst Mantle Mining gets ASX query

The ASX 200 regained all of yesterday's losses and end up 42.1 points to 4267.8 for the day.

All eyes were on Lynas Corporation (LYC) as the share price surged over 19%, up $0.255 to $1.59 after confirming that Malaysia's AELB board approved the granting of a 2 year temporary operating licence for their rare earths project in Gebeng, Malaysia. The company will be granted a permanent operating licence should it comply with the terms of the temporary licence. Those that had long CFD positions with a guaranteed stop loss (to protect on the downside should the licence not have been granted) will be very happy. Macquarie has maintained an outperform tag on the stock.

Elsewhere, Mantle Mining (MNM), which has been a favourite on this blog surged to a high of $0.125. The volume on and just after market open was phenomenal and I thought that it could be a massive day. Unfortunately the ASX lodged a price query with the company which capped any larger run that may have been on the cards. I liked the response from MNM. Whilst the company advised there is no explanation for the rise in volume and price it did say the following:

"The Company is at an exciting stage in its development.

The Company is progressing a drilling program at Bacchus Marsh and expects to have further results from that program available during February and March.

The Company also notes that trial dates for its action relating to the Mt Mulligan tenements have been set for early March."

MNM closed up $0.01 to $0.115 and the buy side of the depth is still reasonably stacked.

Yesterdays scan came up with Pan Asia Corp Ltd (PZC), today the stock opened at $0.145 and flew to a high of $0.175 early morning before being sold off for the rest of the day and closing at the opening price.

My scan says that tomorrow's stock to watch is Pancontinental Oil (PCL). The stock was up $0.014 to $0.11 today on 6.7 million units.

AXG Mining Limited (AXC) Research Report

  • RM Research has issued a research report on AXG Mining Limited (AXC)
  • Research report dated 30/01/2012
  • Speculative Buy rating
  • AXC Last Traded Price: $0.011 (02/02/2012)
  • Research link

Wednesday, February 1, 2012

Market Action Today

The market got hit today with the ASX 200 dropping 37 points to 4225.7. Fairfax Media (FXJ) jumped $0.075 to $0.815 after it was revealed that Gina Rinehard grabbed another 10% of the company. The stock had a massive turnover of over 226 million units. Questions are being raised as to whether she is trying to take control of the company to promote her political and resources views via content.
The market may have gone down today but there was still no stopping Maverick Drilling (MAD) and Syrah Resources (SYR). Take a look at their amazing charts below:

MAD has doubled since being mentioned in the The Motley Fool email recently however encountering oil in the first test well at their Boling Dome Field has helped it on it's way. I'm none the wiser on SYR however it's other graphite counterpart Strategic Energy (SER) has been also been strong of late with investors taking positions before the ex-date is announced on distribution of Mega Graphite shares.

Mantle Mining Corp (MNM) continued to strengthen since I first posted on it on 19/01/2012. Today the stock closed up $0.011 to $0.105 on healthy volume of 4.5 million shares. Watching the stock today the market depth has been improving. The stock just needs to break that wall of sellers at $0.105 (2,148,467 shares) and then it will be very interesting.

Finally, the most promising stock that came up on my trusty scan today was Pan Asia Corp Ltd (PZC). The stock traded 1.5 million shares and increased $0.03 to $0.145. I've seen this stock be a bit of a leaky ship before price sensitive announcements in the past.

Tuesday, January 31, 2012

Back on track...

A month of 2012 has already been and gone!  With all the holidays over and Australia Day out the way all brokers should be back on deck this week at the latest (if not, give them the sack!)  Market turnover should get back to some normality.

Things are definitely looking positive.  There is plenty of signs that the US recovery is on it's way and many firms are announcing their conviction lists with recommendations on exposure to the US led recovery in stocks such as BLD, CPU, NWS and JHX.  Greece is becoming less and less mentioned in the media.  The volatility in the ASX 200 is also decreasing and the market seems to have found a happy medium at 4200 - 4300 levels.

This has boded well for small cap stocks the last couple of weeks.  There seems to be many going for a run and the raft of quarterly reports reminding us what our favourite companies have been up to hasn't gone astray.

With the market having been in the doldrums for the last 6 months or so my stock picking in the small cap category has left a lot to be desired.  Hopefully I can write some quality posts and get us back on track this year!

Thursday, January 19, 2012

Mantle Mining (MNM) technicals not unnoticed

A stock that came up on my radar today was Mantle Mining Corporation Limited (MNM). The stock hit a rolling year low of $0.048 only ten days before Christmas followed by a break out two days before Christmas that prompted a price enquiry from the ASX. The company could not provide any explanation for the spike of its shares apart from activity on internet chat sites.
Today, around 10.7 million units or $970,000 worth of stock changed hands and the price ticked up over 10% to $0.092. This is the largest volume since March last year.

The activity suggests that there may be news on the way and it could come from a number of fronts. Traders will be hoping that the stock price doesn't overcook resulting in a ASX enquiry that will kill the momentum. The activity may also be in anticipation of the things the company has on the go in the next few months.
The company recently drilled 4 holes at it's Bacchus Marsh coal project which has a 1-2billion brown coal tonne target. It remobilised a rig in December for a further 11 drill holes that are to be completed in the 15 hole drill program. The company is also taking action to transfer tenements from previous owners for the Mt Mulligan coal project in Queensland however the court case isn't until March. Considering these two fronts are a month or two away my most likely suggestion for the share price activity is a joint venture with Exergen Pty Ltd musn't be far away.
Directors have recently taken shares in lieu of payment of services which is a good sign.

Tuesday, January 17, 2012

Earth Heat Reseources (EHR) Research Report

  • Arrowhead Business & Investment Decisions has issued a research report on Earth Heat Reseources (EHR)
  • Research report dated 13/01/2012
  • Fair Value Bracket: $0.039 to $0.881
  • EHR Last Traded Price: $0.037 (20/01/2012)
  • Research link

Friday, January 6, 2012

Dragon Mountain Gold - One Step Closer

I posted about Dragon Mountain Gold (DMG) two months ago regarding the sale of their Chinese assets.  When the posting was made the stock had closed at $0.41 and since then the stock price has gradually increased and hovered around $0.45.

A week ago the company confirmed that all approvals have been received and the transaction was completed.  The company are due to receive approximately $150 million as a result which equates to a cash backing of $0.62 per share.  This has seen liquidity in the share price improve substantially and a greater interest in the stock.

Unfortunately I haven't been posting too much in the last few months as the small cap speculative end of the market has been very tough in light of the overall market and worries about Europe's sovereign debt.  It is these kind of trades or investments which are a good target as they almost have a built in floor or protect on the downside.

I recommend setting a news alert on this stock to be able to monitor any announcement made on what the company will be doing with the funds.  From the announcement made on 07/11 we only know the following thus far:

"The proceeds of the sale would allow the Company to actively pursue other investment opportunities in the resources industry. The directors will also consider other capital management alternatives with
respect to the proceeds."

DMG shares last traded at $0.495.

Thursday, January 5, 2012

The Motley Fool's Top Stock 2012

As a forum member of HotCopper I occasionally receive marketing material in my inbox.  The majority of the time it is someone selling their new whizz bang fool proof trading scheme similar to Optionetics or ways of trading the increasingly popular FX markets.

Today I received a link to The Motley Fool's Top Stock 2012 special report.  It is an interesting piece which discusses how telecommunications has evolved in Australia.  I didn't know that Australia Post and Telecom (now Telstra) were once the same company!  The firm goes on to tip M2 Telecommunications Group (MTU) to be the stock of 2012 based on it's organic growth, service orientated business and positioning for introducation of the National Broadband Network (NBN).

Whilst MTU is a reasonably large capitalised company, it will be interesting to see if the report has an impact on MTU's share price.

Wednesday, January 4, 2012

Research Report on Isonea Limited (ISN)

  • Viriathus has issued a research report on Isonea Limited (ISN), formerly Karmelsonix Limited.
  • Research report dated 03/01/2012
  • Target Price: -
  • ISN Last Traded Price: $0.006 (04/01/2012)
  • Research link