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19 Jul 2011 08:01:00

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Sydney - Tuesday - July 19: (RWE Australian Business News) -

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TVN CORPORATION (TVN) has been hot ever since it jumped 1.2c to 3c on turnover of 60 million shares ahead of a trading halt on July 4 for a "material corporate transaction".

Trading remained hot when it resumed after the material corporate transaction, a placement of 76 million shares at 2c each to sophisticated investors raising $1.52m for the acquisition of the Nuurst thermal coal project in Mongolia.

The price could have been expected to fall after the 2c placement, but rose to as high as 4.4c instead.

Yesterday trading reached a new level of hot when TVN announced its first drillhole at the Nuurst project in central Mongolia had intersected a coal system 137m thick.

The shares jumped 3.4c to 6.9c and closed at 5.9c.

Turnover was 150 million shares.

The ASX might want to query who knew what when here.

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NSL CONSOLIDATED (NSL) could have risen from 5.7c to as high as 7.2c last week because of the release to the ASX of an investment presentation, even though it was not tagged market sensitive.

Yesterday it opened at 9.9c and closed at 11c, up 4c, after it settled on the acquisition of EPC Applications 2198, 2336, 2337 & 2338, which are considered highly prospective for thermal coal.

The projects are located in the Eromanga Basin in SW Queensland, adjacent to similar projects held by EAST ENERGY RESOURCES (EER) and the soon-to-be-listed International Coal (ICX).

In addition to the previously established exploration target of between 500m and 600m tonnes of thermal coal for EPC Application 2198 (South Bulburrum), the independent geologist's report in relation to EPC Applications 2336, 2337, 2338 has established an exploration target of 6.6bn to 18.1bn tonnes of thermal coal product in the Winton Formation.

We like to see little companies with big targets.

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It's been a busy month for WPG RESOURCES (WPG) with five announcements already under its belt, the most recent being yesterday's news it has signed the first long-term iron ore sales contract for the Peculiar Knob mine.

This is with a 'blue-chip' Asian customer and is for five years at 350,000tpa.

The Rio Tintos of this world would ship more than that on an average day but it's sweet nevertheless - WPG rose 4c to touch 93c on the news.

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SUNDANCE RESOURCES (SDL) was unwanted a year ago at 10.5c, but rose to as high as 66.5c in January for no known reason, before gradually drifting down to as low as 30c at the end of June.

Now the stock is a winner again, thanks to a takeover bid from Hanlong Mining Investment of 50c a share, which Sundance immediately said did not provide adequate value.

The shares rose 11.5c to 51.5c before closing at 49c.

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Readers of this column well know our impatience with the never-ending speculation over interest rates when nothing happens for months at a time.

They were at it again over the weekend due to Friday's announcement from Westpac to the effect that its resident guru had predicted an interest rate fall of a quarter of a percentage point in ... wait for it ... December.

This tip, from just one of the many dozens of market economists spruiking their wares, made the front-page lead of the two broadsheet papers we buy.

One of them ran the headlines right across the page in the size of type that would be justified for the declaration of WWIII.

Silly us, we thought they were N-E-W-S-papers.

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While we're in the speculation area, Hartleys has tagged MACMAHON HOLDINGS (MAH) a "speculative buy", which is an upgrade from a "neutral" recommendation.

This is due to the broker's improving confidence in its FY12 estimate, and "because the stock looks cheap on that basis".

"There is still risk given MAH's volatile earnings history but we believe that in the short term the upside risk outweighs the downside," it says.

"Currently, MAH is the cheapest stock (on an earnings multiple basis) in our mining service universe.

"While it cannot be a high conviction buy (given earnings volatility) it does look worthy of a trade."

The broker has a 66c 12-month price target.

Macmahon was steady at 54.5c yesterday.

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There is no fat in DJERRIWARRH INVESTMENTS (DJW).

The investment company yesterday announced that NTA a share was $3.59, well below the market price of $3.90 (up 4c yesterday).

The disparity was even bigger last year when NTA was $3.49 and the shares price $4.18.

Djerriwarrh lifted year net profit 127.4pc to $56.9m because the previous year's profit included realised capital losses of $20.1m due to changes in accounting standards.

Final dividend is 16c, making a steady 26c for the year.