I couldn't help but notice the volumes traded on Mozambi Coal (MOZ) the last few days. The ASX noticed also and issued a price query accordingly on Tuesday (05/04) quoting the stock price rise from $0.25 on 31/03 to $0.33 on 05/04. The company advised they had no explanation for the share price rise.
Mozambit Coal is a stock that I have followed for some time. For those that follow my blog you will have noticed that I do like to investigate shell companies and this was one of them. Back in the day the company used to hire out dump trucks and had a syringe-type technology (from memory), a strange combination, under the name RTL Corporation (RTL).
This is all before the company acquired coal basin deposits in Mozambique. By way of acquiring Dugal Pty Ltd the company has acquired two licences including one with ground of 172 square km adjacent to the Riversdale Mining (RIV) block. Mozambi Coal was suspended for a number of months whilst it complied with ASX compliance rules that apply when a company has a major change in activities. Before going off the boards the stock was trading at $0.022.
One of the key points here is that whilst the company was complying with listing rules Rio Tinto (RIO) launched a takeover bid for Riversdale Mining (RIV), proving and increasing the value of other tenements in the area. MOZ shares were reconstructed and when they commenced trading again at the start of March they were at $0.35 or $0.035 equivalent. That's quite a success for those that purchased before the stock before it was suspended. Since then the shares weakened which would probably be as a result of some old stale shareholders finally moving on and the whole Japan earthquake crisis.
Things are now definitely starting to hot up. I think that word is getting around about the potential of this stock. The recent share price gain could also be explained by the fact that TSX listed company Polo Resources has become a substantial shareholder (11%). The company advertises itself as "a natural resources investment company focused on investing in undervalued companies and projects with strong fundamentals and attractive growth prospects." Polo Resources has made excellent gains in other investments such as Extract Resources (EXT) and Caledon Resources (CCD).
MOZ closed at $0.355 today after hitting a high of $0.40.
Buy on dips.
Showing posts with label Rio Tinto (RIO). Show all posts
Showing posts with label Rio Tinto (RIO). Show all posts
Thursday, April 7, 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.
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