spec buy in herald sun

http://www.heraldsun.com.au/business/how-to-come-with-the-unexpected/story-e6frfh4f-1225967092946

A speculative Buy from the Heral Sun on CGV

The writer isn't obviously fully up to scratch with UCG as most today...yet. But has given it a spec buy.

"Think clean

THE share price graph for the optimistically named Clean Global Energy is not an inspiring sight as the concept of underground coal gasification has hardly set the world on fire (excuse the pun).

Worries about water contamination and technical difficulties have worried investors and farmers alike.

However, the concept of long term controlled burning of coal seams underground to produce syngas without any of the usual surface damage and with reduced emissions is a noble and highly profitable aim if it can be achieved economically without disturbing surrounding water.

Clean Global has just signed a deal to produce syngas for a power station from an existing closed mine site in Oklahoma.

It's a speculative buy."

Full article mentioning other stocks also below.



SOMETIMES being a chief executive means learning to cope with unusual situations.
As Bionomics chief Deborah Rathjen has discovered as she deals with the rare circumstance of her biggest shareholder holding a tender offer for almost 28 per cent of the company.

If a company wins that tender, which finishes at the end of March 2011, then they not only get the shares owned by Start-up Australia but they must bid for the rest of Bionomics.

If the tender is not successful, then Bionomics continues with its current shareholding and its so far highly successful research into multiple drug therapies to treat anxiety, cancer and multiple sclerosis.

If the process leads to a takeover then that's an avenue for shareholders to get value, says Dr Rathjen, who also points out that significant clinical testing news from three trials is due in the first quarter of 2011.

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Either way Dr Rathjen says the company is sticking to its knitting and not worrying about what the future may bring.

Probably the biggest drug Bionomics is developing is BNC210 which holds the promise of being better for treating anxiety, depression and panic attacks than existing drugs such as Valium and Prozac.

The major advantage is that it works quickly with fewer side effects such as sedation, memory impairment and addiction.

The uncertainty surrounding Bionomics plus its bright clinical prospects makes it a buy, with value set to emerge from this unusual situation through a takeover or positive clinical results.

Patches and creams

ANOTHER biotechnology stock with exciting days ahead is Phosphagenics, which has developed a groundbreaking patch technology to deliver drugs.

Joint chief executive Esra Ogru says some of the more exciting developments are applications delivering insulin for diabetes, which would greatly assist in managing diabetes and reducing the need for injections, and delivering the pain medication oxycodone.

Both are potentially very large markets but the sleeper in the Phosphagenics portfolio is a cosmeceutical product that will come to market even faster.

In a licensing deal with Calzada (formerly Metabolic Pharmaceuticals), Phosphagenics will release an anti-fat peptide cream that could be a hot seller in the cellulite market.

While Metabolic blew up when clinical trials showed weight loss was not universal due to problems absorbing peptide orally, apparently it does wonders shifting fat when applied directly to the skin as a cream.

Phosphagenics is a speculative buy based on the chances this thigh cream becomes the new botox.

Think clean

THE share price graph for the optimistically named Clean Global Energy is not an inspiring sight as the concept of underground coal gasification has hardly set the world on fire (excuse the pun).

Worries about water contamination and technical difficulties have worried investors and farmers alike.

However, the concept of long term controlled burning of coal seams underground to produce syngas without any of the usual surface damage and with reduced emissions is a noble and highly profitable aim if it can be achieved economically without disturbing surrounding water.

Clean Global has just signed a deal to produce syngas for a power station from an existing closed mine site in Oklahoma.

It's a speculative buy.

Back into metal

SIMS Metal Management is an interesting company because it makes industrial profits from processing scrap metals and plastics.

However, it is also sensitive to the fluctuating metal value of the enormous amount of scrap it stockpiles.

Throw in the currency effect of having a lot of operations in the US, Europe and Asia and it becomes a fairly difficult and complex company for anyone to analyse and forecast.

Sims shares have been trending up nicely over the past few months so it is time to join the trend with a buy.

The Herald Sun accepts no responsibility for stock recommendations. Readers should contact a licensed financial adviser.