Friday, December 4, 2015

IT Vend in Candidate

Winmar Resources (WFE) is an Iron Ore explorer with it's flagship project being the Hamersley Iron project in Western Australia.

As we all know, Iron Ore prices have suffered a sustained downturn with little sight of a rebound.

Unfortunately for resources firms like WFE, their projects have become unviable and/or funds are not easy raise from capital markets.

WFE have admitted that their project in this current low Iron Ore price environment is not economic.  The company has placed all exploration on hold and is currently conserving cash.  With this in mind, the company is a prime shell candidate for a Reverse Takeover (RTO), an all too frequent occurrence in this environment.

So what makes WFE a good play?  Obviously, there are the factors I mentioned above but there's also been a hint or two as well.

Recently at the AGM the chairman openly admitted they are looking at potential vend ins which includes a short list of Information Technology acquisitions.  After this meeting it appears that a few Daytraders got a wind of this.  They started buying $0.005 and then $0.006 the following day.

The stock has retreated to more compelling levels at $0.004.  At this level the stock has a market capitalisation of about $1.7million.  It is debt free and the books showed $290,000 cash on hand at end of last quarter.  This gives the company a low enterprise value (EV) of ~$1.4million.

The board are yet to engage an expert firm to assist with a vend in.  I mean the likes of Otsana (assisted RYG) or more recently GTT Ventures (FCN).  Coming from a resources focus I don't know if the board have the smarts to pull off a deal so I am interested to see if they do appoint a firm to help.  This is the only negative I have identified.

WFE last traded at $0.004.

Tuesday, June 2, 2015

Regeneus Limited Breakout

Regeneus Limited (RGS) is a company involved in the repair and regeneration of cells (cell therapy)The stock has a market capitalisation of approximately $31 million (Peer comparison: Cynata Therapeutics Limited, CYP ~$60million) with good cash position of $4.8 million at 31/03/15 following a share purchase plan in September last year.

Excitingly, the company recently received approval to complete it's first-in human test of RGSH4K, a vaccine designed to activate the immune system to fight against cancer cells.  Trial in canines of this vaccine have shown promising results.  Benefits of cancer immunotherapies such as this include avoiding side effects of chemotherapy.

The company has also received approval to commence trials of their stem cell treatment "Progenza".  These step cells will be injected into the patients knee to reduce the effects of Arthritis.

The stock has attracted bullish targets from Analysts/newsletters including:



For further in depth information regarding the stock I recommend clicking on the above links to view the research.

Technically today was a significant day for the stock.  It closed above a triple top of $0.18 (see chart today) on a spike in volumes both today and yesterday.

Investing in Biotech companies is high risk.  Failures of trials can lead to significant share price destruction.