16 Sep 2011 08:01:00 Sydney - Friday - September 16: (RWE Australian Business News) -
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MYER HOLDINGS (MYR) is nearing its second anniversary on the boards and it has not been a happy couple of years for shareholders.
Listed in November 2009 at $4.10 a share the stock plumbed a record low of $2 on August 9.
But it scored a win yesterday, maybe against the odds, rising 4c to $2.10.
It was the subject of a great headline here during the day ... "Myer net profit up 138pc to $159.7m" (never mind that before non-recurring IPO transaction costs and related charges the result was a steady $163.19m) although that was tempered by the headline on our second piece, "Myer warns of lower profit this year".
Assuming trading conditions do not deteriorate further, the company expects FY2012 sales to be flat and net profit to be up to 10pc below FY2011.
Shares of companies making a miserable forecast like this usually cop a caning.
It was interesting to note the company's comments that in addition to increases in store occupancy and depreciation, renegotiated Enterprise Bargaining Agreement (EBA) and penalty rates and loadings initiated by Fair Work award modernisation will total about $48m.
No doubt the Labor Govt is listening.
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ATLAS IRON (AGO) rose 20c to $3.66 yesterday.
It's a wonder it wasn't more, given the wrap in the morning paper.
It quoted CEO David Flanagan as having rebuffed approaches from potential bidders because he foresaw a tenfold jump in the value of the $3 billion iron ore exporter.
He told a conference in London, "If someone wants to have a crack at the business it's going to have to be a true unsolicited hostile crack, and it's going to need to be really robust.
"We reckon we are a $30 stock."
Actually, tenfold would make it a $36 stock.
Atlas has not been $3 since January.
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It's funny that, over the past month or so, ANVIL MINING (AVM) has twice announced to the market possible corporate activity only to see the shares either fall or do nothing.
Yet, yesterday, after it downplayed takeover talk, the shares jumped.
Yesterday it confirmed, in response to speculation in the Australian media, that it was unaware of any undisclosed material developments in respect of its business and affairs.
The shares jumped 48c to $6.10 and closed at $6.03.
"On August 4, 2011 and again on August 12, 2011, Anvil announced that, with the support of its largest shareholder, Trafigura Beheer BV, Anvil has initiated a strategic review process and that Anvil's board of directors has formed a special transaction committee to review and consider the value maximizing alternatives available to the corporation," it reminded shareholders yesterday.
On August 4, after an initial rise to $6.50, the shares slid to $5.52 three days later.
On August 12 the shares closed at $6 for four days in a row.
Anvil said yesterday there were currently no developments as a result of this process to be disclosed.
"The corporation cautions shareholders that there is no assurance that the review will result in any specific transaction and no firm timetable has been set for the completion of this process," it said.
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TUC RESOURCES (TUC) finally got moving with a 4c rise to 20c yesterday.
On Wednesday the shares could not get out of their own light.
This was despite TUC reporting that analyses of four drilling samples from the Stromberg Prospect had shown that the rare earths were contained in the mineral xenotime.
"Xenotime is known for its excellent recovery of rare earths, is in high demand from the global rare earths processing industry, and could give the Stromberg project a significant competitive advantage via simple, low-cost physical separation methods that could produce a marketable concentrate," it said.
A follow-up RC drilling program is planned.
Drilling follows up on recently interpreted drill results including 7m at 1pc Total Rare Earth Oxide from surface.
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REWARD MINERALS (RWD) shareholders will be on tenterhooks after the company called a trading halt for an announcement on its Lake Disappointment potash project.
Ahead of the halt Reward rose 4.5c to $1.13, making 13c in two days
