Finding it hard to make money on market lately, the money is way too hot and fast, even in this thread, sector heat changes about 3 times a week (and rightfully so) haha
Therefore I've have tied the majority of my money in some upcoming IPO/Placement deals as the strike rate has been pretty good in the past 6 months. I won't get into those as they would be more a discussion for the IPO thread.
but for what its worth here are some on market plays I'm in for Short/Medium term holds that are a little bit left field
UBN
seems good value for a tech play. have seen some majors selling out and bringing this very low. but has won some decent contracts and now with a very neat cash position as a result of a CR recently completed at
a 120% premium to market price, taken up by a single fund.
having said that, the CR price I believe was agreed on a while back, nonetheless, when smart money is at such a loss immediately after depositing the funds, I'm usually happy to pay that discounted price!
have followed this story for a few years and had brokers recommending it to me at $1.20, I actually like the technology.
Director has also been buying up heavy which is a plus.
ERL
This is the biggest no brainer for me on market at the moment, given the current macro sentiment in the world and the value it may have being a gold producer soon enough.
$10m cap and
expected to become an open pit gold producer this month .
the last update a couple of days ago ensured that everything is on track, I think there is a short term trade for when the company notifies us that ''production has commenced''.
Owns 60% in the project with the Year 1 open pit portion having a CAPEX of $1.5m, 21600 ounces of gold should be mined out in year 1 (north of $20m in revenue)
Fully Funded up to $7.5m through a loan, but I believe ERL will not require anywhere near that for now, given how low the initial CAPEX is.
RLC
US lithium acquisition on the cheap
Planning to raise money for acquisition at
3c per share imminently - Currently the price is at a nice discount to this. I usually like these as I believe it means one of two things that will both bode well moving forward:
1) you find the company doing everything it can to ensure that the share price is at a premium to the rights issue price in order to attract strong interest and subscriptions (this is usually the case).
2) alternatively, if the company wants a significant rights shortfall to occur so that it can be placed to the right hands. When this happens, The price usually stays down a while longer so that retailers become reluctant to take up rights and the shortfall will be large.
I'm ok with this too as once the money is placed into the right hands, it tends to start performing (recent example is THD with the 2c rights shortfall, it dipped to 1.4c before making its ascent past 3c last week).
some others to note:
CLQ - tends to give detailed progress updates in quarterlies so I think not a bad punt to buy up lower than 88c which is what the Chinese strategic investment group just took happy to buy up lower than 88c which is what the chinese just took
$81m worth of (I hold a long term investment parcel and have been adding to it from all the way back at 5 cents ..but took some last week for a trade back up to 90c-$1 range)
* * * - I think
@minoil has spotted the cheapest tech shell on the market, I worked out from his clues so I'll let you guys do that too... and given the rise in MM stocks, tech shells may just be back in fashion soon...
Have a good weeken
