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.
Friday, January 6, 2012
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.
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
Saturday, December 31, 2011
Nimrodel Resources (NMR) Research Report
- DJ Carmichaels has released a research report on Nimrodel Resources (NMR)
- Research report dated 15/12/2011
- Speculative Buy - 12 month target price $0.17
- NMR Last Traded Price: $0.048 (30/12/2011)
- Research link
Tuesday, November 8, 2011
Dragon Mountain Gold - Return of Capital?
Dragon Mountain Gold (DMG) today made an announcement that they were selling off their only asset, the Lixian Gold Project for a consideration of $175 million. Whilst Dragon Mountain Gold does not own 100% of the project being sold they estimate that of the $175 million that their share of the proceeds will be $150 million. DMG currently has a market capitilisation of about $93 million. It makes you left wondering, what's the catch? Investment opportunities like this do exist even, this one to the tune of $57 million.
Following the news the share price opened at $0.47 before racing to an intraday high of $0.495. Surprisingly, the stock only finished up $0.02 to $0.41. I think that this can be explained by the fact that there was a few insiders on this one that have made a quick buck and sold into the early strength today to take profits. After all, the stock has increased from about $0.29 late last month.
Whilst there is a few hurdles that remain such as approval from shareholders, Chinese government and Australian FIRB (a little strange considering the asset is in China) these hurdles seem like a formality.
DMG has hinted at completing a return of capital to shareholders. Superannuation Funds will be hoping it is a tax effective structure whereby a chunk of the return of capital is a fully franked dividend.
I expect the share price to appreciate as we lead up to the key dates.
Following the news the share price opened at $0.47 before racing to an intraday high of $0.495. Surprisingly, the stock only finished up $0.02 to $0.41. I think that this can be explained by the fact that there was a few insiders on this one that have made a quick buck and sold into the early strength today to take profits. After all, the stock has increased from about $0.29 late last month.
Whilst there is a few hurdles that remain such as approval from shareholders, Chinese government and Australian FIRB (a little strange considering the asset is in China) these hurdles seem like a formality.
DMG has hinted at completing a return of capital to shareholders. Superannuation Funds will be hoping it is a tax effective structure whereby a chunk of the return of capital is a fully franked dividend.
I expect the share price to appreciate as we lead up to the key dates.
Wednesday, September 21, 2011
It Works! - Coretrack Limited Technology
Coretrack Limited (CKK) shareholders have suffered a bit this year with the company share price on a steady downward trend. The share price hit a rolling year low of $0.071 last month but today shareholders received some excellent news.
The company is focusing on developing it's Core Level Recorder System (CLRS) technology which is used when drilling holes for oil and gas. Basically, the technology sends a signal to the surface advising the driller if the sample being collected has been jammed in the hole. This can result in significant cost savings because as it stands if the driller suspects that sample has been jammed he/she can only remove the drill and check or take a punt and continue to drill deeper. With drigs in short supply and the equipment expensive, the use of this technology could go a long way in solving the problem explained.
Today, the company claimed that the technology managed to measure core intake for the entire drill hole at the Noblige 2 deep water well operated by Woodsie Petroleum (WPL). Whilst this is early days and only one trial this is a big step for the company in proving it's technology.
CKK shares finished up $0.012 to $0.105 on 2.5million units traded.
The company is focusing on developing it's Core Level Recorder System (CLRS) technology which is used when drilling holes for oil and gas. Basically, the technology sends a signal to the surface advising the driller if the sample being collected has been jammed in the hole. This can result in significant cost savings because as it stands if the driller suspects that sample has been jammed he/she can only remove the drill and check or take a punt and continue to drill deeper. With drigs in short supply and the equipment expensive, the use of this technology could go a long way in solving the problem explained.
Today, the company claimed that the technology managed to measure core intake for the entire drill hole at the Noblige 2 deep water well operated by Woodsie Petroleum (WPL). Whilst this is early days and only one trial this is a big step for the company in proving it's technology.
CKK shares finished up $0.012 to $0.105 on 2.5million units traded.
Tuesday, September 20, 2011
Jacka Resources Trading Halt
It's been just over two months since I first posted about Jacka Resources (JKA). Since then there has been a lack of newsflow. A few days after I posted about the company the stock price hit a high of $0.14 before that price spike was arrested after a 'please explain' from the ASX. The share price since then has been weak along with the rest of the market.
The company went into trading halt yesterday and is due to release an announcement tomorrow regarding a 'Head of Agreement for a strategic asset transaction'. It will definitely be one to keep an eye on over the next few days.
The company went into trading halt yesterday and is due to release an announcement tomorrow regarding a 'Head of Agreement for a strategic asset transaction'. It will definitely be one to keep an eye on over the next few days.
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