Weekly Fundamental and Technical Analysis Prospects - Week Starting 9th Jul 2012 (No. 23)
Here’s this week’s FA and TA List. The newer items first and those carried forward from last week towards back of list (some of the items from last week have a time horizon of more that one week). Again, I have taken the liberty of adding some info where it was unclear or fixing typos where I came across them. Hope no one minds. I have reduced the list to 10 or so items again. If you would like me to change your item then please let me know and I will update and I will re-issue. Will open for submissions on next week’s list this Friday after market close. All market caps are undiluted and were correct at time of posting (Note: Max time for any entry on list will be 4 weeks after which time it will be removed).
Important Note: Remember just because it appears on the list does not necessarily mean it will rise in price... it may actually fall or do nothing. So it is critical that research it first and make your own mind up to invest or not. I suggest you run a stop-loss at all times when trading/investing. How tight your stops are depends on your threshold to risk and financial pain. Lastly I take no responsibility for the accuracy of the information provided by Spotters as I do not have the time to research all the facts that have been provided. Best of Luck.!
Weekly Fundamental Analysis Prospects ------------------------------------------------------------------------------------------------------ LOM - Diamonds in Angola. The company exploring for diamonds at the Lulo Diamond Concession in Angola. Lulo covers an area of 3,000km2 and is located in the Cuango River Basin within the Lunda Norte Province of north-eastern Angola in southern Africa . Lulo has world-class diamond exploration potential, so far LOM has recovered alluvial diamond recoveries now exceeding 300 carats and has ID’ed a major kimberlite field within the concession . Lulo is surrounded by concessions held by some of the world’s biggest diamond miners (such as De Beers) and is located about 150km west of the 170-million carat Catoca diamond mine. Drilling and bulk sampling of 61 (21 confirmed as or as probable) priority kimberlite targets. LOM is set to begin testing the kimberlites with the arrival of the BAUER bulk testing drill rig expected onsite shortly if not already onsite. Company has acquired a new 50 tonnes per hour Dense Media Separation (DMS) plant for finding diamonds and additional Caterpillar earthmoving equipment, including a bulldozer, excavator, dump truck and two front end loaders to assist in the bulk testing program. (Mcap: $20m) [Commencement of kimberlite testing program with bulk testing rig] Spotted by: Freehold ( Position Held)
LCY - Mainly Magnetite in the Pilbara/Midwest Australian key projects Mt Bevan Fe project Hamersley Fe project Robertson Range Fe and Manganese project South Laverton gold project East Kimberley gold, base metals and REE project Another resource upgrade due end of month, last week received official earn in for 60% of high grade, low cost 1.6bt inferred magnetite project. A director purchased $150k 2 weeks ago. All sellers (bar one) vanished from LCYOA & LCYOB on Friday 6th Jul. NMDC well overdue to add to LCY (many mentions of producing or near production coking coal projects). (Mcap: $55m) [Expecting a resource upgrade] Spotted by: Omorrisey ( Position Held)
NWE - Oil/gas in the Perth Basin and in the South of UK. Has hit 1000m of shale in previous drilling and will now mobilise frac rig to perform 5 horizontal frac's. High expectation of gas flow. Expectations that the Stock will rally on lead up to the start of drilling (spud). (Mcap: $47m) [Expectation of a Rally on mobilise of frac drill rig and Spud] Spotted by: Freehold (No Position Held)
BBG - International Surf wear Clothing wholesaler/retailer, Company facing difficult trading condition due to Weak global macroeconomic climate. Seems to be strong evidence that there may be a few suitors who are betting on a revival in the retail environment and wants exposure to the US where BBG has a presence. There are suggestions a bid could come as soon as Gordon Merchant (Company Founder and largest shareholder) is back in the country next week and you would imagine if there is too much heat in the stock it may flush out the buyer sooner rather than later. $2 is the target, with relatively little downside in comparison to the upside (Mcap: $427m) [Possible large suitors wanting exposure to US retail market] Spotted by: ChrisWR (Position Held)
NEU - Neuren Pharmaceuticals is a biotech company developing therapies for brain injury, neurological diseases, and cancer. Has a number of trails running, results soon due. Largely funded by US army and Medical research council. Started a run Friday after awarded Rett Syndrome trial grant, which is one of it's main plays. Buy side at top stacked well and expected to continue to run. Has plenty of cash with around $10mil as at last quarter. (Mcap: $24.8m) [Biotech with results from a number of trials expect soon ] Spotted by: BrookCE (Position Held)
ABU - Gold resources company with strong cash position and suspected positive flow of further drilling results to continue this quarter. Have been watching fundamentals build for a while and missed buy point in high 3c range. Started run Friday. Scoping study for their Old Pirate project completed in May that highlights $200m+ positive cash flow once undertaken. High grades of gold in scale. Other 5 key projects all showing high potential and further updates with reporting coming across quarter. Great management team proven track record. (Mcap: $136m) [Positive Drilling results expected] Spotted by: BrookCE (No Position Held)
DTE - Unconventional Gas in SE Asia(India China and Indonesia), UK and eastern Europe, CBM and Shale projects across 18 basins Over 10,400 km2, Resources /Reserves (net) OGIP: 17.8 Tcf (CBM); 76.0 Tcf (Shale)1 2C: 4.9 Tcf (CBM) Reserves: 45 Bcf (2P - CBM); 140 Bcf (3P - CBM) Business 8 countries; local / regional capabilities 150 staff; >50% former Arrow Energy Commercial Options 2 GSAs in place; 1 MOU signed. In Indonesia their ground is close to planned and existing infrastructure such as the proposed gas processing plant in South Sumatra, close to major gas line junctions and industry, major aluminium smelter nearby. Soon to test sites with horizontal drilling (previous vertical drilling) Close contact with community (Mcap: $142m) [Upcoming horizontal Drilling campaign] Spotted by: Trees (No Position Held)
AUK - Gold Explorer in Indonesia. Company is overdue to announce a JORC resource for a porphyry gold copper deposit at Wonogiri in Indonesia. SP is nudging up from lows. AUK will earn 80% of this project. They have had some significant drill holes. Eg..222.0 metres at 0.95 g/t gold and 0.20% copper (1.31 g/t gold equivalent). They have 175m shares currently. Sp has a 12 month high of 48c and is now trading at 4.6c. It reached a low of 3.3c on 28th June. I believe AUK compares favourably to Robust (ROL) with 77% of Romang – a 33.5mt low grade resource .5gt Au and 17.7g/t Ag. ROL is trading @ 85c with 80m shares. Also (SIH) Sihayo 700m shares 19mt 2.7 g/t Au trading @ 13c. Liquidity is an issue. I believe AUK can unveil a resource around 30-50mt at around 1g/t Au + Cu credits. AUK should then be multiples of current sp). (Mcap: $8m) [Upcoming Resource Upgrade and favourable value compared to peers] Spotted by: (No Position Held)
MZI - Zircon/Rutile in Tiwi Islands and Leucoxene Aust SW. Expectation of $30M in revenue due to be announced for their upcoming mineral sands shipments (most likely 2 announcements (each $15M). This will see an influx of revenue and will see a loan repaid in full to Doral. Keysbrook BFS due shortly which is expected to show an extremely profitable project. - Keysbrook BFS due shortly which is expected to show an extremely profitable project (Mcap:$35m) [Large influx of revenue fro Zircon/Rutile sales expected] Spotted by: Dlm696 (No Position Held)
AVQ -Gold in Vietnam, nickel in Solomon Islands, Has 80% interest in the world class Isabel Island nickel deposit in the Solomon Islands, gold and silver projects in Vietnam and 100% owned highly prospective gold, silver and copper tenements in Chillagoe, North Queensland, in Australia. The company is listed on the ASX and operates in Australia, Solomon Islands and Vietnam. Gold deposits appear to be large value driver. Buyer side stacked and sell side thin. Awaiting news re Solomon Islands which will be released next week, suspected to be positive. Issue has been value destroying in past months (Mcap:$16.2m) [Positive Announcement expected on Solomon islands nickel project 1st week of July] Spotted by: BrookeCE (Position Held)
MGY - Graphite/Vanadium in Madagascar, Suspected mass resource of graphite 100% owned with results soon due from mapping and sampling.. Mapping shows 100km approx of strike. Has JV with energizer resources and of late has released a mass of positive news to the market. Prior, has had 2 runs to around 14c. Further positive will see a company a maker, watching peers of late. (Mcap:$14m) [Further upside from recent Graphite announcements] Spotted by: BrookeCE (Position Held)
ESI - Cold Dry Process for upgrading coal, Recently achieved confirmation of Monash Capital joint venture company ‘IMFAMA’s’ investments in ECT shares and Projects, Completion of phase 1 of the Design For Tender DFT) Program and sealing of the Australian Colddry Patent. In addition has announced acquisition of Coal Exploration Arrangements in Victoria. Mentioned in today’s fin and expecting some Carbon tax related announcement very soon. (Mcap:$31.4m) [Expecting a Carbon Tax announcement shortly] Spotted by: Fatpizza (No Position Held)
CKF - Fast Food/Australia, CKF operates a number of KFC and sizzler outlets. It is a great cash flow business. CKF was issued on the market at $2.50 12 months ago. It is a defensive stock with upside. On Friday they announced full year results which included a maiden dividend of 6.5c.Given its results the market should respond accordingly (Mcap:$108m) [Maiden Dividend with further upside for this defensive stock] Spotted by: Finch2 (No Position Held)
GRR - (Magnetite Producer in Australia) It looks like forming an ascending triangle, I'll be waiting for volume on a break of the .53 resistance (Mcap: $601m) Spotted by: Sam91 (No Position Held)
DTE - (Unconventional Gas in SE Asia Eastern Europe) The 52wk Range: 0.14 - 0.73, Current SP:0.19, 5 day, 15mins Slow Stochs: looks interesting, MACD: not too sure, RSI: approx 50, 6 month chart, if sentiment stays okay the ST 21.5 cents then 28-32cents. (Mcap: $142m) Spotted by: Trees (No Position Held)
NMR - (Very large thermal Coal in Botswana) A classic spike and retrace on this stock. Wait for retrace to complete and for support to show (Mcap: $13.7m) Spotted by: Freehold (Position Held)
NWE - (Oil/Gas in Perth Basin) Has broken through downtrend that has been place for several months and retraced to support above the downtrend line. Expect it to bounce off this line as support area and head north albeit slowly (Mcap: $47m) Spotted by: Freehold (Position Held)
ALK - (Au,Cu Zircon and REE) Very strong breakout last week with a very nice low volume test into an area of previous intense supply. Looks prime IMO for another leg up. (Mcap: $357m) Spotted by: Angin (Position Held)
VMT - (Electric Scoot Contract manufacture in Asia) Spike on news of recent contract award in China has result in a gap up and subsequent mini retrace. Support has entered and expectation that the stock may rally to a new high. Entry on break to new high with volume.(Mcap: $10.4m) Spotted by: Freehold (No Position Held)
WHE - (Underground Coal seam gas & Coal and Uranium in Europe) Spike and retrace on reducing volume. Wait for the retrace to complete and support to enter before entry.(Mcap: $29m) Spotted by: Freehold (No Position Held)
ESI - (Clean Coal Technology) Recent reversal out of prevailing downtrend that has been in place since April. Wait for mini retrace back to the support area above the old downtrend line and for support to enter.(Mcap: $31m) Spotted by: Freehold (No Position Held)
ROB - (Coal in Mongolia) Stock looks to have bottomed and is now showing some support. Sell side thin as a “smiths crisp”, chart has plenty of room to move, volatile news speaks for itself (Mcap:$4.1m) Spotted by: Kimbo! (No Position Held)
TPL - (Drilling for Coal in Canning basin and in Qld) Currently in downtrend however has had some solid volume recently and a nice retest on decreasing vol recently. (Mcap:$4.8m) Spotted by: Kimbo! (No Position Held)
