daytrades march 15 pre-market, page-3

This Weeks Picks

Market Direction: Looking to the week ahead there is not a lot of data coming out that is likely to move the markets. The items of interest are Building permits which are due on Tuesday night at 11:30pm AEST, the FOMC statement on Wednesday morning at 5:15am and the Philly Fed Manufacturing Index which comes out on Friday morning at 1:15am. With a lack of data coming out I expect the Australian market to push higher this week putting the 5,000 point level firmly within reach.

Sectors of Interest: No particular sectors look like outperforming at this stage.

APH: Buying interest in APH has been much stronger since the full year results were released a couple of weeks ago. The major weakness in the company at the moment is what looks to be an unrealised foreign exchange loss which sat at $8.2m at the end of December. Anyway the company's shares are currently in a trading halt pending the release of an announcement by no later than tomorrow. News Due: The stock should come out of its trading halt tomorrow with news of a material transaction. Disclosure: Holding APH

MHM/MHMO: The long awaited update on the silicon plant in Tasmania still has not materialised. Technically the stock is trapped in a tight range between 30 and 33 cents and this is likely to continue until an update comes through. If the labour party is hoping to gain from any announcement then it must come through early this week given election day is next Saturday. News Due: An update on the Silica project (Wacker AG) is due now. Plans for exploration on gold and base metal projects located in Tasmania. Disclosure: Holding MHM/MHMO

SSN/SSNO: If we are witnessing a genuine breakout from a cup and handle pattern then I believe the move higher will start tomorrow. Any later and the pattern looks increasingly likely to fail. However, given the near term news flow potentially coming in on three fronts, I believe the fuel to drive the breakout exists. The target for the breakout is around 5 cent. News Due: Commencement of fracturing operations at the Gene#1-22H well. Spud of Ripsaw well. Details of the upcoming drilling program at Bakken. Disclosure: Holding SSNO

MEU: With drilling results from the Melton project, near RXM's Hillside discovery, due at any time the level of interest in MEU picked up substantially last week. Volumes have been building for the past three sessions and are at their highest level in more than three months. Technically the chart looks pretty good with the MACD having crossed and the RSI rising, however the slow stochastic crossed down on Friday but it is only at 50. A return to 15 cents looks likely in the near future. News Due: Drilling results from the Melton project located near RXM's Hillside project.. Disclosure: Holding MEU


ADO: The news that the company had sold its first product to Bangs abd that they would have a finished product on the shelves in three weeks (now two), caused the share price to spike higher. Technically the chart now has a gap down to 5.3 cnets which a lot of traders will be watching so I will be looking to that area as a target to buy. News Due: Further license agreements for the company's Mix & Go technology. Disclosure: No Stock Held

ARM: Management at the company took the extraordinary step of cancelling their incentive scheme (linked to share price hurdles) on Friday. Personally, I believe this was the right decision for all shareholders. Given that senior management at the company already receive a generous allocation of options I think many saw the scheme as being over the top. Friday's announcement sends out two important messages to existing and prospective shareholders. First and foremost, it demonstrates a superior level of integrity when compared to most ASX listed companies. Secondly, it confirms that management of the company listen carefully to feedback from external sources and are prepared to make decisions after taking this [feedback] into account. The focus of management and the market can now return to the upcoming drilling program at the Capricorn South East manganese project which should commence in a few weeks time. News Due: Approval of drilling work program for the upcoming exploration on the Capricorn South East manganese project. Disclosure: Holding ARM

CVY: News that initial cash flow from the development of an open pit mining operation at the company's flagship Cameron Lake was expected to be $US156m (non discounted) was enough to spark significant interest on Friday. The price gapped up to 23.5 cents on the open and went as high as 25 cents before the sellers gained control, forcing prices back down to 21.5 cents at the close. There is a gap between 20.5 and 21.0 cents which I expect to close but I would be surprised if prices fall too far below 20 cents again. News Due: Finalisation of the $5m institutional / cornertstone investor placement. Drilling results from the Ardeen Gold Project in Canada. Disclosure: Holding CVY

PIE: The stock is now on my day trade watchlist following last weeks announcement. The two month exclusive agreement with Telstra announced early last week sparked a massive round of buying in the stock. Prices have since retreated from their highs however a symmetrical pennant has formed and looks like breaking out in the next few trading sessions. The breakout level is about 2.5 cents and the target based on the height of the flagpole of 2 cents is 4.5 cents. There is a gap down on the chart at 3.9 cents dating back to early July 2008. I believe there is a reasonalble chance that the gap will be closed soon fuelled by speculation of a further deal with Telstra. News Due: Decision by Telstra on whether to continue the 2 month exclusivity option. Disclosure: No Stock Held

Good luck this week everybody.