A month of 2012 has already been and gone! With all the holidays over and Australia Day out the way all brokers should be back on deck this week at the latest (if not, give them the sack!) Market turnover should get back to some normality.
Things are definitely looking positive. There is plenty of signs that the US recovery is on it's way and many firms are announcing their conviction lists with recommendations on exposure to the US led recovery in stocks such as BLD, CPU, NWS and JHX. Greece is becoming less and less mentioned in the media. The volatility in the ASX 200 is also decreasing and the market seems to have found a happy medium at 4200 - 4300 levels.
This has boded well for small cap stocks the last couple of weeks. There seems to be many going for a run and the raft of quarterly reports reminding us what our favourite companies have been up to hasn't gone astray.
With the market having been in the doldrums for the last 6 months or so my stock picking in the small cap category has left a lot to be desired. Hopefully I can write some quality posts and get us back on track this year!
Tuesday, January 31, 2012
Thursday, January 19, 2012
Mantle Mining (MNM) technicals not unnoticed
A stock that came up on my radar today was Mantle Mining Corporation Limited (MNM). The stock hit a rolling year low of $0.048 only ten days before Christmas followed by a break out two days before Christmas that prompted a price enquiry from the ASX. The company could not provide any explanation for the spike of its shares apart from activity on internet chat sites.
Today, around 10.7 million units or $970,000 worth of stock changed hands and the price ticked up over 10% to $0.092. This is the largest volume since March last year.
The activity suggests that there may be news on the way and it could come from a number of fronts. Traders will be hoping that the stock price doesn't overcook resulting in a ASX enquiry that will kill the momentum. The activity may also be in anticipation of the things the company has on the go in the next few months.
The company recently drilled 4 holes at it's Bacchus Marsh coal project which has a 1-2billion brown coal tonne target. It remobilised a rig in December for a further 11 drill holes that are to be completed in the 15 hole drill program. The company is also taking action to transfer tenements from previous owners for the Mt Mulligan coal project in Queensland however the court case isn't until March. Considering these two fronts are a month or two away my most likely suggestion for the share price activity is a joint venture with Exergen Pty Ltd musn't be far away.
Directors have recently taken shares in lieu of payment of services which is a good sign.
Today, around 10.7 million units or $970,000 worth of stock changed hands and the price ticked up over 10% to $0.092. This is the largest volume since March last year.
The activity suggests that there may be news on the way and it could come from a number of fronts. Traders will be hoping that the stock price doesn't overcook resulting in a ASX enquiry that will kill the momentum. The activity may also be in anticipation of the things the company has on the go in the next few months.
The company recently drilled 4 holes at it's Bacchus Marsh coal project which has a 1-2billion brown coal tonne target. It remobilised a rig in December for a further 11 drill holes that are to be completed in the 15 hole drill program. The company is also taking action to transfer tenements from previous owners for the Mt Mulligan coal project in Queensland however the court case isn't until March. Considering these two fronts are a month or two away my most likely suggestion for the share price activity is a joint venture with Exergen Pty Ltd musn't be far away.
Directors have recently taken shares in lieu of payment of services which is a good sign.
Tuesday, January 17, 2012
Earth Heat Reseources (EHR) Research Report
- Arrowhead Business & Investment Decisions has issued a research report on Earth Heat Reseources (EHR)
- Research report dated 13/01/2012
- Fair Value Bracket: $0.039 to $0.881
- EHR Last Traded Price: $0.037 (20/01/2012)
- Research link
Friday, January 6, 2012
Dragon Mountain Gold - One Step Closer
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.
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.
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
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