Another lovely day chained to the computer, reading through a staggering plethora of quarterly reports as they hit the bourse and watching for the market response we predicted to the ALP’s loosening of the reins on U mining.
SNU begins a rally up to 42c and then is squeezed back down to close at its opening price of 38c. Someone is definitely accumulating in our opinion - the pattern is clear - place a sell order a few cents higher than the current ask in order to scare the market to sell beneath and keep the buy orders off the screen. The share float gave most folks only 12000 shares - yet the capping parcels are much larger than this - the first significant cap at 41.5c is an average parcel size of 41,500 shares. So it’s either someone who has accumulated a lot more since the float or possibly the large existing holders angling for even more of the cake. The next substantial holders notice will be *very* interesting.
STOP PRESS: Just heard on ABC News, Mike Rann intends to fasttrack a hundred U projects in South Australia. Woohooo!
Similar games have been played with INL for months. Today, the game was exposed by a very positive quarterly report which showed that there had been no sell downs from the top 20 shareholders and several had increased their holdings since December. During the quarter, the vituperative flak directed at the company by disgruntled shareholders played straight into the hands of accumulators (including us) and whoever was doing the manipulation. We’re extremely pleased with this quarterly, which demonstrates the company is on track, is profitable and is preparing to ramp up its processing operations smoothly. 40c may not be too far off once the sentiment under which it has languished dissipates sufficiently and the company produces according to its projections.
Narrow range capping has also been evident of late with BLR, which looks like it has potential to be the best runner this week. Its announcement of a very pleasing significant increase in U JORC resource didn’t hit the market till 3.30pm so the market reaction will doubtless flourish tomorrow. Open over 30c possible?
With a large part of its goodies in the Northern Territory, NTU climbed, closing 7c up at $1.50. The incipient options issue may not affect its price much at all. Its quarterly revealed the company is cashed up with $7.6m in kitty with a projected $2.7m exploration expenditure on the Gardiner-Tanami Super project for 2007.
TRF finished the day at $1.42, recouping most of the ground lost last week after its Wilcherry U and Ironclad float announcement. We’re eagerly awaiting more information about the Ironclad float, which may provide some handsome profits to priority holders like ourselves.
And that’s not all folks!
Next we have THX, which really shone today, breaking out on decent volume from its previous narrow range in the low 50s to close at 61c - up 11%, with its delicious oppies at 40c. Multibagger coming up! Was the enthusiasm due to the promise of its NT U tenements or the vaunted nickel production at Copernicus starting May 08? Or the Lamboo platinum? THX has a swag of attractions, and one can’t help feeling management well and truly know what they are doing with its prospects. Of all our resource holdings, THX feels like a super winner and has since we began to accumulate in the middle of last year.
NAV is looking terrific too - closing at 77c on its way to the dollar mark sooner than one might have expected on a very positive quarterly. Who would think NAV would outperform CQT, which made only a 1.5c gain today, closing at 74.5c. Our sleeper goldie, NWR, is still snoozing at 34c. We’ll wait for the Blue Spec JORC increase mid year. Blue Spec East results are expected mid May too. The company is cashed up with $6.9m in kitty. For some reason NWR seems to be counter-cyclical - performing when all else sleeps. Our little vampire share bearing Lassiter’s lost gold teeth?
APG released a fairly low key quarterly. All appears to be going to plan with BHP and APG is to proceed to build a medium size demo plant at Newcastle which should pull in interest as it proves up its process to scale. One Steel - tick - China Gold - tick - and Horsham - tick. With any luck there’ll be a steady stream of news to sustain the share price during the traditional low period of the year. If there is any weakness, this is one share we will have no hesitation in accumulating.
Phew! tomorrow will be exciting too - waiting for revelations from EVZ - capital raising, rights, options, divvy or another acquisition? the company should be pretty well cashed up through its current workload earnings so it’s all good.
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