Around the Traps ... with THE FERRET
09:00, Tuesday, 5 April 2005
Sydney - Tuesday - April 5: (RWE Australian Business News) -
***************************
BOUGAINVILLE COPPER (BOC) has taken off again and punters
should keep an eye out for an ASX query.
The last two times that happened buying opportunities emerged.
The company, whose mining operations on Bougainville Island
have been rusting and rotting in the rain and the sun for years, and
these days pays the rent (handsomely) from investments in other listed
stocks, was queried in January last year when the shares rose from 30c
to 45c.
The company said it could not explain the rise.
The shares drifted down to 18c by May 13.
That was buying opportunity number one because by January this
year the stock again attracted the attention of the ASX speed police
over a rise from 41c to 70c.
Once again the company could provide no reasons for the rise.
The shares promptly fell, bottoming out at 46c on January 25.
That was buying opportunity number two because Bougainville
yesterday rose 12c to $1 before settling at 99c.
Now if there IS a query (and given the lack of explanation in
the previous two replies, you can't blame the ASX if it doesn't bother)
the price may again plunge.
That would be buying opportunity number three.
*****
As we said, the "connections" of iron ore hopeful MURCHISON
METALS (MMX) were disappointed with the 20c stock's 32c debut on
Friday, having expected better than 40c for the shares.
The market more than made up for the "loss" yesterday when
Murchison soared 21.5c to 53.5c before closing at 47c.
The 1-for-2 free options jumped 19c to 35c before closing at
30c.
At the peak prices shareholders were holding stock worth 71c
for a 20c outlay.
Stags must have been delighted.
*****
Everyone talks their book ... Wizard Home Loans has put out a
media release on the results of a poll, declaring in the introduction -
shock horror - "Most Australians believe interest rates will increase
this week and costly essentials such as dental care and insurance cover
will be struck from the family budget if they do."
Sounds almost like blackmail aimed at the Reserve Bank.
Right at the end of the release are the actual survey results.
Out of 400 Australians surveyed last week, 56 per cent of
borrowers said they would cut back on luxuries such as eating out and
good wine if the RBA lifted rates half a per cent.
Fifty per cent said that treats such as DVDs, CDs and beauty
treatments would be off the shopping list.
Twenty per cent would cancel their annual holidays and 15 per
cent would cut back on the dentist and insurance cover.
Only 15 per cent?
The intro would have you believe every Aussie child's teeth
were on the line.
*****
SALMAT (SLM), a stock we've kept an eye on here over the years,
is climbing steadily again, with three rises in a row from $5.96 last
Wednesday to $6.12 yesterday, up 3c on the day.
It's nearing the record $6.17 reached on March 16.
The recent firming has come despite the handicap of a downgrade
by CSFB.
*****
While we're on brokers, Shaw Stockbroking told clients
yesterday it liked PATRICK CORP (PRK) at $5.88 and called it a
short-term "buy" and a long-term "outperform".
The broker said this as the company "Moves to 62% of Virgin
Blue".
However, at the same time, Shaw said VIRGIN BLUE (VBA) at $1.90
was a short-term "sell" and a long-term "underperform" as, "Patrick
reaches 62% ... See better value elsewhere".
Does this mean Patrick has bought a dud?
Well, the market seems to indicate yes and no.
Patrick fell 11c to as low as $5.77 yesterday.
But Virgin rose 20c to $2.10 before closing at $2.03.
(Comments and complaints to [email protected] - no requests
for advice please.)
ENDS
Copyright © 2005 RWE Australian Business News. All rights reserved.
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