That ONCARD INTERNATIONAL (ONC) is an intriguing stock.
On Friday we wrote about how it had soared 23c to 44c before closing at 37c on Thursday on huge trading of 9.5 million shares (out of a total 137 million).
We thought it may have been due to a Corporate Presentation by the company which had been posted on the ASX news site well after the close of trading Wednesday night ... with bullet points such as ... revenue increasing, cash-flow very strong, in line for profit in first year ... etc.
However, on Friday we also learnt that an internet investment newsletter had written the stock up in the most glowing of terms.
We don't quite know when it was written but the newsletter said the shares "last sold at 21.5c".
Well the last time they last sold at 21.5c was last Tuesday and the stock fell to 21c on Wednesday, which would seem to indicate that the newsletter may not have caused the rush.
On Friday the stock rose again to touch 44.5c and closed at 41c as a further 5.8 million shares changed hands.
A near 100 per cent rise in two days on turnover representing a huge percentage of the general shareholding must have raised a few eyebrows.
A joint venture between Peter Scanlon's Brencorp and a Hong Kong-based investment bank is the cornerstone investor in Oncard with 40 per cent while Richard Pratt's family's Thorney Investments and James Packer's CPH are also big investors.
TFL Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
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