around the traps ... with the ferret

  1. 4,756 Posts.
    Around the Traps ... with THE FERRET
    07:17, Friday, 21 January 2005

    Sydney - Friday - January 21: (RWE Australian Business News) -

    PORTMAN (PMM) says in the quarterly report that the
    "combination of increased shipments, a higher percentage of standard
    ore shipped, a higher lump ratio and significantly higher product
    prices augurs well for extremely strong performance in the coming

    Extremely strong?

    Hey, if it's that good why is Portman recommending the
    $3.40-a-share takeover offer from Cleveland Cliffs?


    Uranium explorer DEEP YELLOW (DYL) knows the right time to
    strike is when you're hot.

    Its shares have climed from 2c on January 7 to as high as 4.3c
    yesterday morning, and in the afternoon directors announced a 33
    million share placement at 3c with clients of several Perth brokers
    including DJ Carmichael and Montague Stockbroking to raise $990,000.

    The purpose of the issue, heavy buyers of the stock will be
    glad to know, is to enable Deep Yellow to "more aggressively" pursue
    its uranium exploration and acquisition program.

    However, the stock came off the top to close at 3.7c, still up
    0.2c on the day.


    Good figures add up so easily.

    S8 LIMITED (SEL) has got in early in the interim reporting
    season to tell shareholders first-half net profit will be not less than
    $5 million, a rise of 43.6 per cent on the previous corresponding

    The company expects this growth will continue as the result to
    December 31 does not include any contribution from the December/January
    acquisitions (767 new apartments under management, bringing the total
    number managed to 3638 and the total marketed to 5137).

    The shares rose 19c to a record $1.81 after the announcement.

    The shares were well tried ahead of the announcement with the
    price climbing from $1.46 over three days to $1.62 on turnover almost
    10 times bigger than the recent average.


    GIANTS REEF MINING (GTM) yesterday reported "significant" gold
    intersections at Malbec North.

    CEO Joe Ariti commented that this discovery was "potentially
    very significant given it is completely open at depth, and so close to
    our existing mining operations".

    That's official, then.

    The next step up from "significant" is "very significant".

    Giants rose 0.4c to 7.7c on the news.


    Was this a maths test from SERVICE STREAM (STR) ... something
    along the lines of "... what was the original number"?

    The company yesterday issued a press release with the headline,
    takeover by it of PRACOM for $11 million.

    However, it did not say 55 per cent growth from what.

    There were some clues, though.

    Service Stream said Pracom was expected to generate revenue of
    $40 million a year.

    Service Stream also said it remained on target to achieve the
    projected $300 million in revenue within three years but this is of no
    use for our calculations because it is three years hence.

    No, if the 55 per cent growth comes from the latest acqisition
    of $40 million revenue, then the original number must be $72.72 million
    (that is, 100/55 x $40m).

    However, in the year to June 30 last Service Stream reported
    revenue of only $17.1 million ... but we'll leave it there 'cos our
    brains are already hurting.


    We can appreciate the need for maths tests following this in
    the paper the other day:

    "Twenty five per cent of first-year primary education students
    failed a Year 8 maths test ... only 17 of 159 students scored the
    'mastery level' of 80 per cent ... none got full marks ... 40 students
    scored less than 50 per cent ..."

    The fluctuating between percentages and numbers and various
    measurements would have anyone's head spinning.

    What the writer probably meant to say was that, "Forty out of
    159 student teachers failed a Year 8 maths test."

    The writer failed Journalism I.


    Service Stream traders liked the latest development and the
    shares raced ahead 3.5c to 25c in the initial reaction.

    Maybe buyers were influenced by the fact that the $11 million
    purchase price for Pracom represents a multiple of less than four times
    expected EBITDA.

    Also, the acquisition is expected to be immediately earnings
    per share positive and will support Service Stream's market share
    growth within the large, but fragmented infrastructure-based services
    industry in Australia.

    However, the shares later slipped to close at 23c.


    METALLICA MINERALS (MLM), "An emerging Queensland focused
    multi-commodity resource company", said yesterday it acquired 100 per
    cent ownership of Dingo Dam after the purchase of its partners' 10 per
    cent holding on Wednesday.

    "Metallica is now the sole owner of the Dingo Dam nickel
    deposit," it said.

    Yup, 100 per cent ownership will make you sole owner every

    Metallica remained at 18.5c.

    (Comments and complaints to [email protected] - no requests
    for advice please.)


    Copyright © 2005 RWE Australian Business News. All rights reserved.
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.