sellers dry up.., page-3

Yes, with only 16M shares on issues and majority are very tightly held SIM should have a lot more upside and the article below will help it along.


Uranium tipped to lead capital charge

LEE-ANNE PETCHELL and RUTH WILLIAMS



Uranium is tipped to be the hot metal for capital raisings this year in a sharemarket flush with cash, according to accountant KPMG.

The strong sentiment for floats is forecast to remain robust on the back of a bumper year for capital raisings and the Howard Government's pending sell-off of its giant Telstra stake in the next 12 months.

The growing interest in uranium-exposed stocks comes as the metal tests 30-year price highs amid a worldwide rethink on nuclear power.

Perth-based companies Berkeley Resources and Paladin Resources have capitalised on uranium's growing popularity, with their share prices more than doubling since January. Paladin led the pack in 2004-05 with the biggest price gain.

They will be joined today by uranium explorer Hindmarsh Resources, which is due to list on the stock exchange. It has exploration interests in South Australia's Curnamona Province and the Gawler Craton.

"We look forward to progressing our uranium search at a time of renewed debate on nuclear power and signs that the Federal Government is positive about an expansion of uranium exploration and mining," Hindmarsh chairman Richard Bonython said.

KPMG is tipping the sector will be a capital raising hot spot in 2005-06.

KPMG says in its Capital Markets Survey that BHP Billiton's $9.2 billion acquisition of WMC Resources and its Olympic Dam uranium deposit has rekindled debate on nuclear energy and will combine to promote investor interest in uranium.

It described 2004-05 as an "exceptional" year for the S&P-ASX 200, despite the anxious sell-off in March after an interest rate increase and company profit downgrades.

Andrew Leithhead, KPMG head of capital markets advisory, said that despite the total value of capital raisings falling just short of 2003-04, investors remained confident.

"The considerable amount of cash chasing a home means that a steady flow of IPOs (initial public offering), takeovers and placements will continue for the next 12 months," he said. "The considerable cash released by the capital markets in 2004-05 has been further bolstered by the relentless flow of superannuation contributions."

The report revealed Australia's markets raised more than $34.9 billion in equity in 2004-05, short of the previous year's record of $37.3 billion on the back of strong sentiment.

The number of IPOs was up on the 143 in 2003-04, climbing to 185 in 2004-05, but the aggregate level of funds raised fell. WA was second in float numbers but slipped to third on value. KPMG blamed the paradox on a rash of small company listings and a lack of "super floats" in 2004-05.

Mr Leithhead said the buying frenzy surrounding one of the new financial year's first floats, Tattersall's, suggested that investors had simply been waiting for the right opportunity to buy.

The much-anticipated third Telstra float, still to be approved by the Government-controlled Commonwealth Parliament, was the year's major unknown, Mr Leithhead said.

"When you've got a single transaction that is almost as large as the total number of equity funds raised in the Australian capital markets in 2004-05, there's no doubt it will have a big impact regardless of the methods used to break it down to more manageable levels," he said.




with THE AGE




















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