At the start of March I posted about following the big boys and their investment decisions. One of the stocks that cracked a mention was Red Fork Energy (RFE). At the time of posting the share price was at $0.405 and weakening.
It now appears that the others are catching on to the likes of BHP Billiton (BHP) and the potential of shale gas in the US. George Soros, the billionaire investor, has taken a slice of Red Fork Energy through his investment fund. After the news the stock surged as high as $0.52 on the 25th of March and trading volumes over the last few weeks have been excellent.
Definitely a stock to keep an eye on.
Further details on the investment made by George Soros can be found at this link.
Showing posts with label BHP Billiton (BHP). Show all posts
Showing posts with label BHP Billiton (BHP). Show all posts
Wednesday, March 30, 2011
Friday, March 11, 2011
Julia rings the bell (of destruction)
The irony. Our Prime Minister Julia Gillard rung the bells at the New York Stock Exchange last night. The DOW dropped almost 2%.
Everything that the government touches turns bad. I've read numerous articles the past week from Charlie Aitken to Coppo (Goldman Sach's trading desk daily memo) and they've been ruthless about the current government and it's decisions. It's partly because it is the 2 year anniversary of the bottom of the GFC and also partly because the ASX has been smacked 4% this week that all this negative commentary has been floating about.
The instos have been waiting for their opportunity to sell and with commodities prices hitting all time highs, the Aussie dollar still above parity with the US and the Middle Easy troubles it has been an easy decision to sell. This is coupled with the governments dangerous decisions regarding the resources super tax (which hurts all Australians, yes we all hold BHP and RIO through our superannuation fund) and carbon tax. It's no wonder that Australian companies are targeting and acquiring projects overseas. Africa used to have Sovereign risk but now we do!
There is a lot of fear in this market which unfortunately doesnt bode well for the small cap stocks that we follow. For those that are gutsy it may be a time to top up on your favourite stocks whose share prices have been hit by low liquidity (the lack of buyers forces prices down on low volumes). For others it may be a time to sit on the sidelines, not open any new positions and wait until the world settles down. Having said this, who knows when things will settle - Japan has just been struck by an earthquake so markets may get hit further tonight.
Everything that the government touches turns bad. I've read numerous articles the past week from Charlie Aitken to Coppo (Goldman Sach's trading desk daily memo) and they've been ruthless about the current government and it's decisions. It's partly because it is the 2 year anniversary of the bottom of the GFC and also partly because the ASX has been smacked 4% this week that all this negative commentary has been floating about.
The instos have been waiting for their opportunity to sell and with commodities prices hitting all time highs, the Aussie dollar still above parity with the US and the Middle Easy troubles it has been an easy decision to sell. This is coupled with the governments dangerous decisions regarding the resources super tax (which hurts all Australians, yes we all hold BHP and RIO through our superannuation fund) and carbon tax. It's no wonder that Australian companies are targeting and acquiring projects overseas. Africa used to have Sovereign risk but now we do!
There is a lot of fear in this market which unfortunately doesnt bode well for the small cap stocks that we follow. For those that are gutsy it may be a time to top up on your favourite stocks whose share prices have been hit by low liquidity (the lack of buyers forces prices down on low volumes). For others it may be a time to sit on the sidelines, not open any new positions and wait until the world settles down. Having said this, who knows when things will settle - Japan has just been struck by an earthquake so markets may get hit further tonight.
Tuesday, February 15, 2011
Early Stage ASX Shell Plays (part 2)
Let's continue our look at some of the ASX shell plays that are still in their infant stage with very little volumes being traded...
GEOTHERMAL RESOURCES (GHT)
This is probably the most riskiest of the shell plays that I am going to mention however one of the more different cases. The company is teetering on the edge with cash to the tune of $249,000 (Quarterly Report 30/11) and has had to minimise all expenditures to survive. The company has two geothermal projects in South Australia however due to the poor sentiment towards the sector and subsequent lack of funding the company has found itself in a position whereby it needs to branch out into other commodities to survive. Management are hoping by acquiring a project that is in a more 'sexy' sector that they will be able to raise funds. The company has stated:
"An alternative is to diversify Geothermal Resources exploration base into other commodities that have more immediate appeal and for which capital can be raised. This uses the Company’s exploration skills and could provide shareholders with more immediate returns whilst waiting for an improvement in the geothermal exploration investment climate. Directors are monitoring other investment opportunities, particularly in the precious and rare earth metals sector, and may act to secure a suitable opportunity if it presents itself."
Considering that the company has very little cash something is going to happen sooner rather than later, whether it be administration or a hot new project. GHT last traded at $0.09.
NEW AGE EXPLORATION (NAE)
I like this prospect. This is one of the more cashed up shells around with about $4.3million on hand so there is less pressure on management to vend in a project anytime soon. From my research it seems that an Iron Ore project will be the most likely kind of project to be acquired by the company. The company has been looking for a project for some time now (almost a year) so things are slow going however they nearly acquired an Iron Ore project in Spain. Negotiations for this Spanish project are unlikely to result in an outcome. NAE has an excellent MD in Gary Fietz who worked at BHP Billiton (BHP) in their Iron Ore division for 21 years. NAE last traded at $0.09.
ADVANCE ENERGY (AVD)
I believe that this company is about to move out of the early stage shell play category with the share price having mini breakouts every so often and trading volumes picking up. The stock price is becoming quite volatile also. There is good value here with the market capitilisation at $5 million and the company having $2.5 million on hand. Recently the company sold it's US oil well projects for $11.3 million which helped the company extinguish outstanding debts. What I find exciting is that the company's financier has allowed them to maintain a $40 million line of credit facility for future acquisitions! AVD last traded at $0.026.
TVN CORPORATION (TVN)
Unusally this company is maintaining it's internet marketing business whilst deciding a resources project might be a good way to 'diversify'. I am unsure what experice the management have in the resources sector and the tenement applications made tend to lack any detail or substance in the announcements made to the ASX. TVN last traded at $0.011
GEOTHERMAL RESOURCES (GHT)
This is probably the most riskiest of the shell plays that I am going to mention however one of the more different cases. The company is teetering on the edge with cash to the tune of $249,000 (Quarterly Report 30/11) and has had to minimise all expenditures to survive. The company has two geothermal projects in South Australia however due to the poor sentiment towards the sector and subsequent lack of funding the company has found itself in a position whereby it needs to branch out into other commodities to survive. Management are hoping by acquiring a project that is in a more 'sexy' sector that they will be able to raise funds. The company has stated:
"An alternative is to diversify Geothermal Resources exploration base into other commodities that have more immediate appeal and for which capital can be raised. This uses the Company’s exploration skills and could provide shareholders with more immediate returns whilst waiting for an improvement in the geothermal exploration investment climate. Directors are monitoring other investment opportunities, particularly in the precious and rare earth metals sector, and may act to secure a suitable opportunity if it presents itself."
Considering that the company has very little cash something is going to happen sooner rather than later, whether it be administration or a hot new project. GHT last traded at $0.09.
NEW AGE EXPLORATION (NAE)
I like this prospect. This is one of the more cashed up shells around with about $4.3million on hand so there is less pressure on management to vend in a project anytime soon. From my research it seems that an Iron Ore project will be the most likely kind of project to be acquired by the company. The company has been looking for a project for some time now (almost a year) so things are slow going however they nearly acquired an Iron Ore project in Spain. Negotiations for this Spanish project are unlikely to result in an outcome. NAE has an excellent MD in Gary Fietz who worked at BHP Billiton (BHP) in their Iron Ore division for 21 years. NAE last traded at $0.09.
ADVANCE ENERGY (AVD)
I believe that this company is about to move out of the early stage shell play category with the share price having mini breakouts every so often and trading volumes picking up. The stock price is becoming quite volatile also. There is good value here with the market capitilisation at $5 million and the company having $2.5 million on hand. Recently the company sold it's US oil well projects for $11.3 million which helped the company extinguish outstanding debts. What I find exciting is that the company's financier has allowed them to maintain a $40 million line of credit facility for future acquisitions! AVD last traded at $0.026.
TVN CORPORATION (TVN)
Unusally this company is maintaining it's internet marketing business whilst deciding a resources project might be a good way to 'diversify'. I am unsure what experice the management have in the resources sector and the tenement applications made tend to lack any detail or substance in the announcements made to the ASX. TVN last traded at $0.011
Wednesday, August 18, 2010
BHP Billiton takeover of Potash Corp sparks interest in all things potash, phosphate and fertilisers
BHP Billiton (BHP) has dived over 3.5% today after it announced that it had made a $US130 per share bid for Canadian listed Potash Corp. Media reports have already speculated that it is likely that BHP will increase it's bid for the company.
One thing is for sure and that is other smaller players in fertiliser and phosphate and potash (ingredients in fertilisers) sectors have awoken. For those interested in these sectors some of the plays include Incitec Pivot (IPL), a fertiliser supplier, potash companies such as Orecobre (ORE), Reward Minerals (RWD), Elemental Minerals (ELM), South Boulder Mines (STB) and phosphate companies such as Minemakers (MAK), and Union Resources (UCL).
Finally, other companies like Rum Jungle (RUM) are taking the opportunity to spruik their company by announcing responses to the takeover of Potash Corp for PR purposes.
One thing is for sure and that is other smaller players in fertiliser and phosphate and potash (ingredients in fertilisers) sectors have awoken. For those interested in these sectors some of the plays include Incitec Pivot (IPL), a fertiliser supplier, potash companies such as Orecobre (ORE), Reward Minerals (RWD), Elemental Minerals (ELM), South Boulder Mines (STB) and phosphate companies such as Minemakers (MAK), and Union Resources (UCL).
Finally, other companies like Rum Jungle (RUM) are taking the opportunity to spruik their company by announcing responses to the takeover of Potash Corp for PR purposes.
Wednesday, February 10, 2010
Samson Oil & Gas Surges
The market opened reasonably strong this morning on the back of reports overnight that the Euro countries were considering bailing out Greece from its sovereign debt problems. Despite this and better than expected profit results by Commonwealth Bank (CBA) and BHP Billiton (BHP) the market closed only 0.2% higher losing most of it's early gains and showing that market sentiment is still poor.
Samson Oil & Gas (SSN) proved to be the star performer today with the shares closing up 87.5% or 0.014c higher to 0.03 on massive volume of 509 million shares. The company announced "Oil and gas shows are also being recorded as expected, with gas shows typically 1,400 units over a background of 450 units. Oil shows are continuous with a typical description being “abundant brown spotty to even oil stain with a fast, strong milky white cut”. Not unusually oil has been noted from time to time on the shale shakers." in relation to it's drilling on Gene #1-22H well.
Samson Oil & Gas (SSN) proved to be the star performer today with the shares closing up 87.5% or 0.014c higher to 0.03 on massive volume of 509 million shares. The company announced "Oil and gas shows are also being recorded as expected, with gas shows typically 1,400 units over a background of 450 units. Oil shows are continuous with a typical description being “abundant brown spotty to even oil stain with a fast, strong milky white cut”. Not unusually oil has been noted from time to time on the shale shakers." in relation to it's drilling on Gene #1-22H well.
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