daytrading oct 6 pre-market, page-15

Sydney - Thursday - October 6: (RWE Australian Business News) -

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Coal has been a big winner for WASHINGTON H SOUL PATTINSON (SOL) over the years and it hit jackpot levels yesterday.

NEW HOPE CORPORATION (NHC) - which is 59.7pc-owned by WH Soul - has received preliminary and incomplete proposals for a takeover.

Its shares soared $1.21 to a year-high of $6.50 before closing at $6.10.

WH Soul was a little more sedate, at first, and opened up 42c at $13.07 before racing away to a year high of $13.98.

It closed at $13.64, up 99c.

That price, which has boosted Soul's market value by about $238 million, may be a little cautious.

Its shareholding in New Hope rose more than $400 million in value.

Meanwhile, shareholders in another company in the stable, BKI INVESTMENT COMPANY (BKI), may be feeling a bit disappointed with the rise of only 4c in its shares to $1.115.

After all, it owns 14.8 million New Hope shares.

But 4c is a $17 million rise in BKI value, which is more than the $12 million or so rise in the value of its New Hope stake.

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BRADKEN (BKN) opened well up at $6.39 yesterday, but then fell to as low as $6.17 before closing at $6.24, up 3c.

The market was reacting to news at the AGM that the company was expecting EBITDA growth of 25pc-30pc in FY12 with net profit growth in the range of 35pc-40pc over FY11 adjusted results.

It was no surprise the market failed to get excited over this bright forecast because it was exactly the same as that forecast at the full-year results on August 9.

Of course, the shares then were as high as $8.25 but that was another investment world.

In fact, the shares touched a year low of $6.09 on Tuesday, ahead of the AGM.

MD Brian Hodges told yesterday's annual meeting that FY13 would see further positive impacts on earnings as a result of continued market expansion and major capex spending in FY12 and FY13.

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COFFEY INTERNATIONAL (COF) shares may not be too popular when it resumes trading.

It is seeking $40m at 38c a share to repay debt.

That's 8c less than the last sale of 46c on Tuesday when the price briefly plumbed a year low of 45c (year high is $1.145).

The raising will comprise a 1-for-1.75 issue to raise $29.1m, a $6.1m accelerated institutional component and a $23m retail component, as well as a placement to institutional investors to raise $10.9m.

Coffey has been almost this low before.

It slid from 58c to May 27 to as low as 48c on June 3 and said in reply to an ASX query it was aware of press speculation and commentary.

It also said it was conducting a strategic portfolio review of its businesses.

A few days later it announced a business portfolio restructure "to focus on core competencies and markets" ... and rose to 71.5c.

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METGASCO (MEL) has gone for a run again.

It rose from 28c to 34c in the three days ahead of a trading halt on September 29 for an announcement saying that ERM POWER (EPW) had acquired a 6pc interest in Metgasco, further diversifying its gas investment strategy on the east coast of Australia.

ERM managing director and CEO Philip St Baker said this was a modest investment that provided exposure to anticipated rising gas prices on the east coast of Australia.

He said ERM Power was comfortable with a shareholding at this level.

Yesterday Metgasco took off again with a 10.5c rise to 54c.

And this time turnover soared to a record 12.6 million shares.

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When TIGERS REALM COAL (TIG) announced on Tuesday that its Amaam inferred resource had been increased to 294Mt coking coal, it would have been reasonable for the shares to rise but they fell 8.5c to 25c (maybe it was a reaction to gross over-expectation).

Anyway, the stock bounced 6c to 31c yesterday.