daytrades july 1 morning, page-2

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News Summary

Around the Traps ... with THE FERRET Unit Price:
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01 Jul 2011 08:00:00


Sydney - Friday - July 1: (RWE Australian Business News) -

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Things are moving fast at DRAGON MINING (DRA).

No sooner did it get out an announcement of further high-grade gold intercepts from the Sarvisuo West area at the Orivesi goldmine in southern Finland than it had to request a trading halt ... this time to wait for an announcement relating to a significant drill result at the Kuusamo gold project.

Finland has been a happy hunting ground for Dragon.

Yesterday's Oriveri announcement included 1.75m at 27.16 g/t gold, 1.80m at 9.26 g/t gold and 8.35m at 4.67 g/t gold.

The shares rose 3c to $1.21 on the news.

That's better than last time.

On June 14 Dragon Mining announced the receipt of a number of "bonanza" drill intercepts from Orivesi, including 2.40m at 84.53 g/t gold and 3.00m at 55.10 g/t.

The shares fell 4c to $1.29 in reaction to that bonanza and the price continued to weaken, to as low as $1.08 on Monday.

The shares more than doubled from less than 90c last June to a record $1.90 in December.

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TRIANGLE ENERGY (TEG) rose 0.5c to 3.7c on Tuesday and 0.9c to 4.6c on Wednesday.

When it took off again yesterday to as high as 6c the ASX popped the question but the company could throw no light on the reason for the rush.

Triangle closed at 5.8c.

VOYAGER RESOURCES (VOR) also came into the ASX's sights when it jumped 1.4c to 4.8c.

Again, the company could not help.

Voyager closed at 4.4c.

Might be something to do with being financial year-end yesterday.

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ATLAS IRON (AGO) has often featured on this news service ... in fact, it appeared in Tuesday's column following the takeover bid for FERRAUS (FRS).

It fell 18c to as low as $3.25 in reaction to the bid which, with the benefit of that famous hindsight, was a good buying level.

Yesterday the stock was $3.73, up 16c.

FerrAus, meanwhile, after rising 15c to 79c on Monday, has pushed ahead to 90.5c, up 4.5c yesterday.

The higher Atlas goes, the better the one Atlas share for four FerrAus offer gets.

Giving Atlas a boost is broker Hartleys, which issued a buy recommendation on June 8.

"We have a $4.18 base case valuation and a $5.25 12-month price target," it said.

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BOOM LOGISTICS (BOL), trading at a year low of 24.5c, was staring into the abyss yesterday morning.

But in the afternoon, a rescue.

Boom announced it had obtained financing approval for a $150m three-year revolving debt facility from its existing banking syndicate.

The facility has been structured to allow Boom to retain its $37.7m of existing equipment lease finance and hire purchase facilities with non-participating banks, which will amortise down to zero by the end of FY13.

After the refinancing, Boom's overall cost of debt is expected to average 9pc for the 2012 financial year (2011 - 11.8pc).

Directors say this facility ensures Boom is well-placed to support ongoing growth initiatives in the coming years.

Boom shares jumped 5.5c to close at 30c.

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Another bookseller is biting the dust.

PMP (PMP) has decided to close the Scribo book distribution business, affecting around 50 employees.

The ancillary business Brumby Books and Music will continue.

The rise and fall of PMP's share price makes quite a tale.

From 57c this time last year, the stock climbed to $1.07 on December 20, but has since come right back to 62c, unchanged yesterday.