Beyond The Fringe

We borrowed the terrific post title above which was conjured up by one of the ingenius HotCopper denizens, no-ball, for Trafford Resources’ meteoric rise on Tuesday. As one would expect, this promising ASX star came off the boil a little yesterday and may remain stable or lower for a Friday 13th trading. Still to come are its uranium results which will really set the cat amongst the pigeons if they are significant, and the proving up of its superior high grade magnetite, which will do wondrous things for it as well. Add the interest from Chinese investors and then consider its lovely rich gold seams – 36m @ 5.71g/t and 32m @ 3.44g/t are not to be sneezed at.

Managing Director Ian Finch was ‘adamant’ in his November 06 Resource Stocks interview that

“the company is progressively closer to finding what he’s repeatedly told the market has always been there – an open pit similar in proportions to Roxby Downs, the largest uranium project in the Southern Hemisphere.”

The glory of the booming bourse continued unabated – yesterday was the Day of Thunder as THX revved up at last. A foreign insto, Evolution, has sniffed out its uranium, and has now been revealed to have been accumulating assiduously since January, culminating in a substantial shareholder notice which set the share alight. Since we’ve brooded on these for a while trusting our fundamental analyses and fey Scottish instincts, we’re pleased to be vindicated. It may even keep going up today without a correction, as there’s plenty of buying interest. On the other hand, as monstrous amounts of foreign cash gushes in to jump on the shameless rodent’s CGT-free merry-go-round, if there is enough interest, the price may fall due to heavy manipulations.

We’re now wondering whether a similar sneaky accumulation isn’t happening with INL. Since December, someone/s has been smashing it down every time it looks like poking its head up. Some folks think it’s a pathetic trader/s going for miserable half cent daily gains, yet we think it might be a similar style of accumulation to THX’s – surreptitious and ultimately rewarding. Why go for such a puny daily gain when there are much surer prospects around, like WMT, BLR, TRF, NTU or AVX, if one wanted a quick, far more decent profit? We’ll hold tight. There must be a lot at stake if that someone/s thinks it worthwhile enough to continue doggedly with their dastardly daily game – if our suspicions are on the ball, that is.

With an estimated $45b to flow back into the market after Coles, Rinkers and who knows what other private equity takeovers, hedging snaffles, grabs and nibbles, the market appears destined to continue its upward surge. Insto cornucopia! Costello wants another useless surplus to look dandy for the election whilst for the average Whorestralian, non-WorkChoiced prices continue upward, WorkChoiced wages stagnate, nonWorkChoiced company executive salaries gambol toward the heavens, WorkChoiced job growth is deceptively high and non-WorkChoiced unemployment equally deceptively low.

Continue reading Day of the Traffords