Around the Traps ... with THE FERRET
07:51, Monday, 21 March 2005
Sydney - Monday - March 21: (RWE Australian Business News) -
***************************
The market's newest iron ore darling, MIDWEST (MIS), made a
lively comeback to the trading lists on Friday.
After a five-day trading halt and suspension at 63c the shares
went as low as 50c and as high as 85c before closing at 77c, up 14c.
It was a win-win for participants in a 37c placement and the
shareholders who have been offered stock at 37c in a share purchase
plan.
They have quickly doubled their money.
The only unhappy punters are the poor mugs who sold ahead of
the trading halt, as the price climbed relentlessly from 38c to 63c.
They probably feel dudded.
*****
Mining investors dread breakdowns and stoppages.
On Friday ZINIFEX (ZFX) announcd that electrical failure in the
SAG (semiautogenous grinding) mill at Century Mine would cause the loss
of 11 to 18 days production.
The full financial impact will be revealed in the middle of
this week.
Sellers didn't wait.
They lopped the shares 13c to $3.04 on Friday, a 4 per cent
fall, which roughly equates to the percentage of year's days lost in
the stoppage.
It may have burst the bubble for the stock, which had risen
from $1.78 on listing day in April last year to recently hit a record
$3.48.
*****
WEBSPY (WSY) is not a busy stock.
In fact, sometimes it goes for days on end without registering
a sale.
So when it bursts into action on rising prices it attracts
notice.
Hopefully it attracts the notice of the ASX as well.
It didn't trade on Monday and Tuesday, but rose 1.3c to 2.5c on
Wednesday (you don't often get 100 per cent-plus price rises), rose
1.1c to 3.6c on Thursday and 2.1c to as high as 5.7c on Friday.
It later came off the top at a rate of knots to close the week
at 3.5c.
There's been nothing from the company since the announcement of
a half-year loss of $552,000 on February 28.
*****
Bold expansion moves can be exciting for investors.
But MACQUARIE COUNTRYWIDE's (MCW) $3.5 billion shopping spree
in the US has not been a happy experience for its unitholders.
The price of the stock has slumped from $2.02 to as low as
$1.82 (on Friday) since the announcement.
Kylie Rampa, CEO of the trust's manager, said: "CountryWide's
focus will be on integrating the First Washington Portfolio and
delivering to our investors the benefits of these high quality assets
with their grocer strength and attractive demographics."
No doubt unitholders are feeling happier already.
*****
When the OECD said Australia was highly taxed it was all over
Parliament, the front pages of the papers, on the air waves and on the
TV screens for days on end.
When the OECD admitted it got it wrong, well, it was on the
bottom of page eight or a lightning quick read between items on TV.
Funny that.
*****
CALLIDEN (CIX), the former ReAC, reports that APRA has approved
its new general insurance licence and confirmed its re-entry into the
general insurance market.
CEO Nick Kirk said that working with APRA on the licence
approval process had been a positive experience and that Calliden had
adopted best practice business processes in setting up the business.
"The licence approval process was quite rightly intense and
rigorous, but it has provided us with a strong foundation on which to
grow our business and we will continue to demonstrate our disciplined
approach through our operations," Mr Kirk said.
Isn't that nice and courteous?
But after the HIH saga APRA had better be intense and rigorous.
Calliden fell 1c to 58c on Friday.
(Comments and complaints to [email protected] - no requests
for advice please.)
ENDS
Copyright © 2005 RWE Australian Business News. All rights reserved.
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