I recently covered a stock in Minquest Limited (MNQ) which is in the process of acquiring a pain recognition smartphone based technology company, ePAT.
When covered on 28th April the stock had closed at $0.019 and the following morning they opened at $0.018. Since then the stock has posted a high of $0.034 on 4th May before retreating to a close of $0.027 on Friday (6th May).
For those that missed my original post, it can be found at this link.
Completion of Due Diligence for the acquisition is supposedly around the corner.
Sunday, May 8, 2016
Thursday, April 28, 2016
ePAT backdoor listing into MinQuest Limited (MNQ)
With the resources downturn we've seen a raft of the junior explorers complete "vend ins" whereby acquiring a target company by issuing a lot of scrip and raising funds to survive. Originally there was a lot of money to be made in this area however it became saturated and lost it's gloss. Tech vend ins are slowing up. Now we are going through the Lithium vend in or acquisition craze.
One recent tech vend in that came up on my radar which I believe will buck the trend and do well is ePAT (Electronic Pain Assessment Technology). MinQuest Limited (MNQ) announced the acquisition of this company on the 22nd of April.
Under the agreement MNQ will acquire the company by issuing 373 million consideration shares which will be held under a two year escrow period. MNQ has completed an interim capital raising and will go on to raise a further $3million post consolidation.
ePAT is a smartphone based app that applies facial recognition technology by taking a video of the patient and then determining presence of pain by analysing the facial expressions. The app is especially useful for assessing pain in patients that cannot communicate like infants or those with dementia. The ease of use of the app should result in cost savings for healthcare areas like hospitals or aged care facilities.
ePAT is being compared to another healthcare app in ResApp which a patient breathes into a smart phone and the app can detect respiratory problems. ResApp Health Limited (RAP) has gone on to be a bit of a market darling with it's share soaring from about $0.02 to $0.27 recently in under a year (market capitalisation currently is $105million)
In regard to the trading action, MNQ shares spiked to $0.022 and settled back to $0.016 on the first day of the news. Unfortunately, a major shareholder, Magna has been the source of the heavy selling. Fortunately, the convertible note conversions, which has resulted in shares being issued to Magna and sold into the market will be repaid. Supply should start to decrease after this which will be a positive.
MNQ last traded at $0.019.
One recent tech vend in that came up on my radar which I believe will buck the trend and do well is ePAT (Electronic Pain Assessment Technology). MinQuest Limited (MNQ) announced the acquisition of this company on the 22nd of April.
Under the agreement MNQ will acquire the company by issuing 373 million consideration shares which will be held under a two year escrow period. MNQ has completed an interim capital raising and will go on to raise a further $3million post consolidation.
ePAT is a smartphone based app that applies facial recognition technology by taking a video of the patient and then determining presence of pain by analysing the facial expressions. The app is especially useful for assessing pain in patients that cannot communicate like infants or those with dementia. The ease of use of the app should result in cost savings for healthcare areas like hospitals or aged care facilities.
ePAT is being compared to another healthcare app in ResApp which a patient breathes into a smart phone and the app can detect respiratory problems. ResApp Health Limited (RAP) has gone on to be a bit of a market darling with it's share soaring from about $0.02 to $0.27 recently in under a year (market capitalisation currently is $105million)
In regard to the trading action, MNQ shares spiked to $0.022 and settled back to $0.016 on the first day of the news. Unfortunately, a major shareholder, Magna has been the source of the heavy selling. Fortunately, the convertible note conversions, which has resulted in shares being issued to Magna and sold into the market will be repaid. Supply should start to decrease after this which will be a positive.
MNQ last traded at $0.019.
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:
Edison
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.
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:
Edison
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.
Wednesday, November 26, 2014
Dourado Resources (DUO) - Tech Vend in?
There's no doubt that the current market for junior resources firms is bleak.
Technology start ups on the other hand are the flavour of the month. This combination is resulting in a number of resources firms finding themselves with dwindling cash reserves and not many other alternatives but to vend in a Tech. firm to raise capital and rebirth.
Another company that has fallen into this category is Dourado Resources (DUO). The Perth based company has been focusing on developing gold & copper projects (Mooloogool & Sabbath).
Their quarterly report to 30th September shows a company cash balance of $86,000. Subsequent Appendix 3b's (x2) show raisings of $25,000 and $75,000 both at $0.01 per share and a premium to prevailing share price at the time.
The company currently has a miniscule market capitalisation of $1.3 million and interestingly shareholders have approved raisings of up to $3.5 million to be made in the future, obviously significantly higher than the current market cap! The company has stated that it is in advanced discussions with one party in regards to a capital raising initiative.
I would like to point readers to the announcement made to market on 20th of November titled "Company Update & Forward Strategy". The market response on that day was quite muted however after market a number of popular Hotcopper members started spruiking the stock and the next day it surged from $0.01 to a high of $0.012.
Since the announcement the traders have moved on and sold the stock down steadily. The announcement stated the company is discussing, negotiating and assessing opportunities in various sectors. Three proposals have been put forward to them include one technology opportunity.
Considering the current market you would think that the only way to raise funds would be via a technology acquisition. In conclusion, with a measly market cap and a possible tech vend in coming it's one worth watching, even more so with the price at or below the price before this new information has come to hand. DUO shares closed today at $0.007.
Technology start ups on the other hand are the flavour of the month. This combination is resulting in a number of resources firms finding themselves with dwindling cash reserves and not many other alternatives but to vend in a Tech. firm to raise capital and rebirth.
Another company that has fallen into this category is Dourado Resources (DUO). The Perth based company has been focusing on developing gold & copper projects (Mooloogool & Sabbath).
Their quarterly report to 30th September shows a company cash balance of $86,000. Subsequent Appendix 3b's (x2) show raisings of $25,000 and $75,000 both at $0.01 per share and a premium to prevailing share price at the time.
The company currently has a miniscule market capitalisation of $1.3 million and interestingly shareholders have approved raisings of up to $3.5 million to be made in the future, obviously significantly higher than the current market cap! The company has stated that it is in advanced discussions with one party in regards to a capital raising initiative.
I would like to point readers to the announcement made to market on 20th of November titled "Company Update & Forward Strategy". The market response on that day was quite muted however after market a number of popular Hotcopper members started spruiking the stock and the next day it surged from $0.01 to a high of $0.012.
Since the announcement the traders have moved on and sold the stock down steadily. The announcement stated the company is discussing, negotiating and assessing opportunities in various sectors. Three proposals have been put forward to them include one technology opportunity.
Considering the current market you would think that the only way to raise funds would be via a technology acquisition. In conclusion, with a measly market cap and a possible tech vend in coming it's one worth watching, even more so with the price at or below the price before this new information has come to hand. DUO shares closed today at $0.007.
Sunday, November 9, 2014
Broad Investments - Substantial Acquisition Coming?
An interesting announcement that came up on my radar during the week was one made by Broad Investments (BRO) on Wednesday in the form of a Market Update.
Readers of my blog will remember that I used to identify shell plays that may be about to vend in the next hottest or popular commodity or technology. This form of speculating is very hit or miss although can be quite lucrative for the early mover who gets in at rock bottom and has a lot of patience. There's also a good chance that nothing eventuates. Recently, the hottest projects have been Graphite (this appears to have worn off, although OGI Group (OGI) was good fun to trade) or tech start ups.
Broad Investments (BRO) is one worthy of attention. In it's recent Market Update the company advised that it has finally turned a profit after being listed on the ASX boards for a significant time. It appears the company still uses the same announcement format from 8 years ago! The company reported six consecutive quarters of being cash flow positive as well as a modest profit of $45,000 for the financial year ending 30/06/14.
The company activities involve the provision of telephony and communication services through its subsidiaries. The company has a market capitalisation of approximately $2.5 million and as at 30th October it has cash equivalents of $575,000 (including cash $297,000 / ASX listed shares $47,000 / Trade receivables $232,000). Revenue for the last financial year was $3.8 million.
The numbers stack up however the potential share price kicker was for those that read to the very last paragraph of the announcement which stated the following:
"the Directors and management are currently considering a substantial acquisition, which has now reached due diligence and independent valuation stage, but is still subject to successful financing and final terms and price negotiation. The Board will provide further updates should this or any other transaction it may be currently considering or working on, reaches a level of certainty in negotiations, due diligence and financing, which the Board can reasonably be confident of completion. "
BRO last traded at $0.003 on Friday on 2.5 million units. The stock is thinly traded.
Readers of my blog will remember that I used to identify shell plays that may be about to vend in the next hottest or popular commodity or technology. This form of speculating is very hit or miss although can be quite lucrative for the early mover who gets in at rock bottom and has a lot of patience. There's also a good chance that nothing eventuates. Recently, the hottest projects have been Graphite (this appears to have worn off, although OGI Group (OGI) was good fun to trade) or tech start ups.
Broad Investments (BRO) is one worthy of attention. In it's recent Market Update the company advised that it has finally turned a profit after being listed on the ASX boards for a significant time. It appears the company still uses the same announcement format from 8 years ago! The company reported six consecutive quarters of being cash flow positive as well as a modest profit of $45,000 for the financial year ending 30/06/14.
The company activities involve the provision of telephony and communication services through its subsidiaries. The company has a market capitalisation of approximately $2.5 million and as at 30th October it has cash equivalents of $575,000 (including cash $297,000 / ASX listed shares $47,000 / Trade receivables $232,000). Revenue for the last financial year was $3.8 million.
The numbers stack up however the potential share price kicker was for those that read to the very last paragraph of the announcement which stated the following:
"the Directors and management are currently considering a substantial acquisition, which has now reached due diligence and independent valuation stage, but is still subject to successful financing and final terms and price negotiation. The Board will provide further updates should this or any other transaction it may be currently considering or working on, reaches a level of certainty in negotiations, due diligence and financing, which the Board can reasonably be confident of completion. "
BRO last traded at $0.003 on Friday on 2.5 million units. The stock is thinly traded.
Tuesday, October 21, 2014
Blina Minerals (BDI) – worthy of a punt?
One stock
that has come up on the radar the last few days is this little gold and diamond
tiddler, Blina Minerals (BDI).
With the
stock not trading at $0.002 for over a month and a couple of buyers coming up
on open yesterday morning and this morning paying the same price it hasn’t been
hard to identify that there was something going on in the background. This was confirmed today with a solid 29 million
units changing hands with basically all the stock trading at $0.002 except for
a small quantity on close. The stock
closed at $0.001 however this can more or less be ignored as these units sold
into the close appear to be sold by a Chi X bot that bought during the day and
has a mandate that it cannot hold overnight.
Anyway, now
that the trading aspect has been covered let’s take a look at the story which
starts with another company, Orbis Gold Limited (OBS).
Orbis Gold
recently announced an updated scoping study showing very solid numbers on their
Natougou gold project in Burkino Faso.
At the same time, the company also announced that they had received an
unsolicited and indicative takeover proposal by Semafo Inc. for $0.62-$0.65 per
share. Interestingly, Semafo Inc. did
not have a condition to complete due diligence on the OBS takeover. In other words they are very confident that
the company is undervalued and they are wishing to move quickly. So much so, a few days later they announced
the takeover for $0.65 per share.
Trading in OBS shares has resulted the price creeping up to $0.70
today. This suggests that the market
believes another bidder may appear or that the stock has been re-rated as a
result of the scoping study. At the
start of trading today the market capitalisation on OBS is approximately $167
million. They’ve also hired an adviser
for their defence indicating that there’s going to be more to the story.
BDI tenements
lie adjacent to OBS’ making it a nearology play. BDI’s tenements appear to be on the same
fault line. BDI has a miniscule market capitalisation
of approximately $1.5 million. As at June 2014 their cash balance was $1.4
million.
BDI have made the following
comments on the project “The soil sampling showed high gold values in excess of
50ppb but Blina was unable to access the original analytical reports and has
therefore adopted a cautious approach to the results. However, the regional
setting of the Exploration Licence just 15km from the Natougou gold deposit on
an interpreted north-northwest trending structure and along trend from the
regional soil geochemistry anomaly of Orbis Gold makes the tenement an
attractive exploration prospect.”
News flow on
Blina Minerals is imminent with the July quarterly activities Report stating
the following:
“A soil
sampling programme has commenced and results will become available in the
September quarter.”
These
sampling results are now overdue.
Back in town
It's been a long time...
We quite often start things and we either lose interest, get too busy or it all becomes too hard.
I really enjoyed posting about the stocks that caught my attention and hopefully assisting others in identifying opportunities. It's been over a year and a half since my last posting to this blog but I'm hoping to change this and start posting semi-regularly when I can.
I've sort of made a start with sending out some tweets to my followers recently. For the times that I can't post in detail to my blog or it's a time sensitive piece of information I'll send out a tweet. I highly recommend that you click on the "follow me on twitter" banner!
For those that have followed me on Twitter recently may have come across a couple of gems! These have included alerts to watch:
TON today announced it's Nicanda Hill Maiden JORC Resource. Trading was very erratic. In true TON style the stock opened up high before getting sold off to close up $0.09 at $0.405.
For a piece of nostalgia on TON and it's initial moves, I dug up a previous post here:
We quite often start things and we either lose interest, get too busy or it all becomes too hard.
I really enjoyed posting about the stocks that caught my attention and hopefully assisting others in identifying opportunities. It's been over a year and a half since my last posting to this blog but I'm hoping to change this and start posting semi-regularly when I can.
I've sort of made a start with sending out some tweets to my followers recently. For the times that I can't post in detail to my blog or it's a time sensitive piece of information I'll send out a tweet. I highly recommend that you click on the "follow me on twitter" banner!
For those that have followed me on Twitter recently may have come across a couple of gems! These have included alerts to watch:
- Toro Energy (TOE) - Identified that the MD of TOE was in India with Prime Minister to sign uranium deal ($0.08 -> high $0.13) and;
- Capital Mining (CMY) - Alerted to the acquisition of Chinese Cloud Computing company ($0.005 -> high $0.013)
TON today announced it's Nicanda Hill Maiden JORC Resource. Trading was very erratic. In true TON style the stock opened up high before getting sold off to close up $0.09 at $0.405.
For a piece of nostalgia on TON and it's initial moves, I dug up a previous post here:
How far they have come in two years!
Happy trading.
Wednesday, January 16, 2013
Artemis Resources (ARV) Star Performer
With the ASX market picking up quite substantially over the last few months confidence is finally starting to return to the small to mid cap sector. Each and every day we are seeing a number of stocks moving aggressively and volumes increasing.
Today's star performer was Artemis Resoures, up $0.013 to $0.019 (171%) on 61.5 million units. The company announced that a "Review of Mt Clement Project identifies significant antimony mineralisation". Antimony prices have risen signficantly in the past few years and the company believes that this part of their gold project now warrants drilling.
Coal prices have been in the doldrums and we are seeing recovery in this sector now with good gains made by stocks such as Stanmore Coal (SMR), Continental Coal (CCC) and Universal Coal (UNV) today (all up over 10%).
Today's star performer was Artemis Resoures, up $0.013 to $0.019 (171%) on 61.5 million units. The company announced that a "Review of Mt Clement Project identifies significant antimony mineralisation". Antimony prices have risen signficantly in the past few years and the company believes that this part of their gold project now warrants drilling.
Coal prices have been in the doldrums and we are seeing recovery in this sector now with good gains made by stocks such as Stanmore Coal (SMR), Continental Coal (CCC) and Universal Coal (UNV) today (all up over 10%).
Wednesday, January 2, 2013
ASX up after Fiscal Cliff avoided
Our market motored along today with the ASX 200 (XJO) adding 57 points or 1.2% and crashing through the 4700 barrier. This followed news in the US that the senate had passed the bill that will ensure that they avoid crippling tax increases and so called 'Fiscal Cliff'.
Telstra Corporation (TLS) continued on it's way with a rolling high and close of $4.44 (up $0.07). Resources stocks such as RIO, FMG and NCM all had a very good day. The banks were slightly stronger.
In the small cap space Drake Resources (DRK) outperformed, up $0.05 or 25.6% to $0.245. The stock was only $0.062 before Christmas. On the flip side, Korab Resources (KOR) a stock I mentioned yesterday, suffered profit taking and was down $0.053 to $0.092.
Telstra Corporation (TLS) continued on it's way with a rolling high and close of $4.44 (up $0.07). Resources stocks such as RIO, FMG and NCM all had a very good day. The banks were slightly stronger.
In the small cap space Drake Resources (DRK) outperformed, up $0.05 or 25.6% to $0.245. The stock was only $0.062 before Christmas. On the flip side, Korab Resources (KOR) a stock I mentioned yesterday, suffered profit taking and was down $0.053 to $0.092.
Tuesday, January 1, 2013
Korab Resources Surges on Asset Sale News
The ASX market closed early yesterday at 2:10PM EST however that didn't stop Korab Resources (KOR) surging 116% to $0.145 after making a price sensitive announcement at 12:20PM.
The company has announced that it is selling its Winchester magnesium project in the Northern Territory to an Estonian company for up to $33.2million. Unlike many takeover deals announced in the resources sector of late this takeover is binding between the parties and subject to regulatory approvals.
The deal will involve Augur Investments Ou paying $16.6 million in cash on closing of the deal and potentially $16.6 million in royalties from mined magnesite. On paper the deal is good, especially considering that after the share price surge Korab Resources still only has a market value of $17million. The company also has a gold and silver project in the Ukraine, gold project in Western Australia and other non-core projects.
RCR released a broker research report on the stock on the 14th of December and has a valuation price of $0.21 per share. The broker believes that the Winchester project is uneconomical so it remains to be seen if Korab Resources will actually receive any royalties in the future.
With Korab Resources currently short on funds it will be interesting to see if a capital raising is completed to get them through to the closing date of 31/03/13 for the deal.
The company has announced that it is selling its Winchester magnesium project in the Northern Territory to an Estonian company for up to $33.2million. Unlike many takeover deals announced in the resources sector of late this takeover is binding between the parties and subject to regulatory approvals.
The deal will involve Augur Investments Ou paying $16.6 million in cash on closing of the deal and potentially $16.6 million in royalties from mined magnesite. On paper the deal is good, especially considering that after the share price surge Korab Resources still only has a market value of $17million. The company also has a gold and silver project in the Ukraine, gold project in Western Australia and other non-core projects.
RCR released a broker research report on the stock on the 14th of December and has a valuation price of $0.21 per share. The broker believes that the Winchester project is uneconomical so it remains to be seen if Korab Resources will actually receive any royalties in the future.
With Korab Resources currently short on funds it will be interesting to see if a capital raising is completed to get them through to the closing date of 31/03/13 for the deal.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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