Today's movers and shakers

Whilst the Aussie market is trading sideways and still attempting to stay above that 4650 level, there's definitely a lot of money to be made in the smaller cap stocks with most days now showing some top gainers with share price movements of 40% and above.  Stocks that come to mind include Northern Uranium, Orion Metals, Avanco Resources and Peak Resources.

Today Avanco Resources received much attention today with it's announcement 'Iron Ore Project Update'.  Whilst there was information confirming the receipt of the initial payment from Vale for the Trindade North project the announcement also detailed the conditions of the purchase of the project all of which we have heard before.  Those that read the announcement more closely would have come across the statement "pending drill holes assays are expected soon, with abundant copper mineralization having been already logged for many of these holes. The Company is anticipating to be able to report further results in the coming weeks." in regards to the drilling completed at the Rio Verde Copper Project.  The shares finished up $0.026 to $0.096 on volume of a massive 306 million.

Galaxy Resources (GXY) had a nice little spike in it's share price before the company decided to put it's shares into trading halt.  The company is due to provide an update on the Mt Cattlin project and future financing arrangements.

Capital Mining (CMY) showed that anything rare earths is still the flavour of the month by surging 33% to $0.12 after hitting a high of $0.15.  The company copped a speeding ticket from the ASX for it's efforts.

Finally, I recently mentioned Apollo Consolidated (AOP) in a post regarding how it could be one to watch however had reservations about the number of shares that would flood the market (issued to Patersons clients).  Well, it appears that the overhang of stock is easily being soaked up by the market.  It also appears that the Patersons clients aren't selling the stock down but rather drip feeding it into the market.  This is evident today with nearly 35 million shares changing hands and the stock only increasing by $0.002.  I dont think it will be too long before it really starts to move.

Morning Briefs

All eyes will be on Avanco Resources (AVB) after it's surge yesterday.  The company announced that drilling confirmed 'existence of a exceptionally high grade copper zone' including one spectacular hit of '9 metres at 50.49% copper from 18 metres.'  Not all of the assay results have been sampled so there's chances there could be more good news on the way.  There's plenty of bids in the market depth this morning and the stock will probably gap up on open above $0.07.

After accumulating a stake in Northern Uranium (NTU) Conglin Yue has now moved on to Orion Metals (ORM) too.  He filed a substantial holder notice on Monday evening helping the share price along yesterday.  He filed another notice yesterday afternoon confirming his stake increase to 12.05%.

It seems like a few are catching on the to the potential of Botswana coal play African Energy (AFR).  The share price has seen some awesome gains the last week and surprisingly avoided receiving a speeding ticket from the ASX.  Today the company has announced a price sensitive update and exploration target.

Gryphon Minerals (GRY) remains in trading halt pending a capital raising.  It's no wondering the directors have decided to do so considering the share price has risen from $0.84 a month ago to last trade of $1.45.

Small Cap Snippets

I'm amazed about how much interest there still is in Northern Uranium (NTU).  The fully paid shares have now gone ex-rights and the rights are trading under the code NTURB.  For those that follow the stock don't forget to watch closely for any arbitrage trading opportunities between the rights and heads.  Also interesting to note is the forever changing share registry.  Not long after Areva confirmed it had exited it's position so to did Mineral Resources (MIN).  Since then we've also had Conglin Yue (from my research he seems to be a private individual investor with many other holdings) show his hand after accumulating a 10.92% holding.

This morning I tweeted about Batavia Mining (BTV) and that it would be one to watch today considering it's form yesterday.  Definitely a leaky ship.  The company went into trading halt this morning before trading commenced and it will announce exploration results soon.  It's neighbour, Western Desert Resources (WDR) announced drill results from it's Roper Bar Iron Ore Project yesterday with little fanfare.

Finally, Avanco Resources (AVB) had another case of 'flashing' or fake bids earlier this morning.  The games in this one have been prominent the last few days.  'Flashing' involves showing fake buy or sell orders to incite other traders into placing orders and therefore triggering trading.  The stock had numerous large buy orders in pre-open this morning which were cancelled before market opened.

Orion Metals (ORM) now next to Northern Uranium (NTU)...

Orion Metals (ORM) has staged a massive 76% increase in it's share price to $0.15 after announcing today that it has acquired the Killi Killi Hills rare earth project in Western Australian close by to Northern Uranium (NTU) tenements.  The company picked up the tenements on the cheap by paying only $55,000 (cash and scrip) and a possible future maximum royalty of $100,000 to Mount Resources Pty Ltd.  I tweeted about the announcement a little after 3pm and luckily took a small position at $0.11 at the time.

Reading the forums online there has been a lot of chatter about the stock and it's potential upside for a number of reasons.  These reasons include:

• Small market cap of only $8 million undiluted (Northern Uranium's is approximately $40 million)
• Lack of shares on issue (approximately 55 million) which will make it hard to stifle the share price
• Rock chip samples recently taken with results due in the next week.  Anticipation of these results will help the share price.
• 'Nearology' to Northern Uranium.  Traders and investors will be wanting to ride the next share price burst after the performance of NTU shares.

The company also has other rare earth tenements in Queensland plus a copper-gold project near CuDeco Limited (CDU).  Tomorrow will be an interesting day, hold on to your hats ladies and gentleman.

As an aside and interesting to note, Areva has taken it's chance to exit the share registry of Northern Uranium.  Areva filed a 'ceasing to be substantial shareholder' notice to the ASX today.

Other updates: AVB, NTU

Northern Uranium (NTU) has bounced back after being hit from it's announcement to place shares with Jiangsu Eastern China Non-Ferrous Metals Investment Holding Co to raise over $15million for a 51% holding in NTU.  I'm surprised with such a strong rebound in the shares and especially the volume being traded.  From reading chat on internet stock forums it appears many retail shareholders are going to vote against this and possibly egg-on the FIRB to reject the investment leading to a Lynas Corporation-style combeback.  A 9 million crossing of shares at $0.12 has also set tongues wagging with interest as to who the identity of the buyer may be.  Whatever the reasons the interest in rare earths companies is definitely back (if only for now).

Avanco Resources (AVB) made a nice little announcement today advising the market that Vale (iron ore behemoth) has taken an option to acquire the Trindade North Property from Avanco.  This will enable the company to earn royalties on any "in-situ JORC compliant iron ore resources in the measured and indicated categories" whilst focussing on it's copper projects.

Sell on fact: Northern Uranium

I blogged about Northern Uranium (NTU) late last week after trading volumes suggested that something was up.  Today the company came out of trading halt and announced that it has signed a letter of intent with Jiangsu Eastern China Non-Ferrous Metals Investment Holding Co., Ltd, an affiliate of East China Exploration and Development Bureau (“ECE”).  The deal will result in ECE emerging with a 51% stake to raise approximately $15.7million at $0.145 per share.

The market hasn't reacted all that well which I would believe is a combination of the dilution of existing shareholders, the stake is a controlling one at 51% and that short term traders that bought stock in the lead up to the news are now exiting their positions.  I am interested to see what will be the response (if any) from uranium French giant and large shareholder Areva.

There is a bit of discussion on internet forums as to whether the FIRB will approve the investment especially considering how tight the supply is on Rare Earths and the fact that an investment recently in Lynas Corporation (LYC) was knocked back not too long ago.

Northern Uranium in Trading Halt

I was seriously considering taking a position in Northern Uranium today.  The stock piqued my interest after trading volumes spiked (along with share price) yesterday which was backed up again this morning.  I commenced my research.

The basis of my research was to determine if there was any exploration results due or maybe simply renewed interest in the stock because of it's rare earth projects which is a sector that can be hot and have renewed bursts (Lynas Corporation LYC has been strong in the last month).

One of the first things I do like to check is the market capitilisation, number of shares on issue and cash on hand.  Market capitilisation gives me a good idea of what the company is valued at already considering I like to target low value companies with lots of potential upside.  Number of shares will give me an idea of how many shares could potentially flood the market, stifle the share price and thus prevent any upside.  Finally, cash on hand is a good way of seeing if the company has enough cash to keep exploring and won't have to raise cash soon (and thus dilute my share holding).  Northern Uranium ticks most of the boxes - small market capitilisation of $11 million (undiluted), about 100 million shares on issue which is okay but slightly pushing it and $2.5 million in cash, enough for now.  The next step?  The industry that it lies in.  Uranium and Rare Earths.  I always like to go for companies in a sector that is favourable now.  At example at the moment would be companies that surround Sandfire Resources (SFR) Doolgunna region such as Sipa Resources (SRI), Thundelarra Exploration (THX), and Resource & Investment (RNI).  Rare Earths would fit into one of those favourable sectors.  The other thing I did notice was Areva was on the register.  It is always a plus having a big boy such as Areva around because they don't take an interest in little tidlers like NTU without a reason.

However before my research was complete and whilst writing up this post the stock went into pre-open followed by a trading halt.  Talk about disclosure!  There was definitely a leak on this one.  The announcement due to be released on or before Monday is in relation to "a potential corporate transaction".  Hard to know what to make of this.  The company has completed soil sampling at it's rare earth projects recently so I intially thought maybe we may have some further information on that but the mention of corporate transaction blows that idea!