around the traps ... with the ferret

  1. 4,756 Posts.
    Around the Traps ... with THE FERRET
    07:38, Tuesday, 25 January 2005

    Sydney - Tuesday - January 25: (RWE Australian Business News) -
    ******************************

    CARRICK GOLD (CRK) may be a new stock but it's the subject of
    the same old bag of tricks.

    Listed last Thursday, the 20c shares opened at that price and
    haven't stopped soaring, putting on 13.5c to 41c yesterday before
    trading was halted.

    The 1-for-2 options added to the bonanza when they rose 10c to
    20c.

    After the close of trading last night, the company announced a
    "Confidentiality Agreement with Placer Dome".

    The confidentiality obviously didn't extend to the sharemarket.

    *****

    The sharemarket boom seems to have done nothing for
    INDEPENDENCE GROUP (IGO).

    A year ago the nickel miner was $1.23.

    Yesterday it was $1.14, up 2c on the day, after issuing a
    quarterly report.

    We thought the report looked pretty good with Independence
    achieving record production and record low operating costs.

    Profit was also a record with after-tax EPS of 14.5c a share,
    or 11.2c fully diluted.

    At this rate it's earning better than 40c a shares for the full
    year, which would put the stock on a low p/e of less than 3 (the market
    average is more than 13).

    The company paid an inaugural 5c fully franked dividend in
    December 2004.

    Directors believe this level is sustainable for the current
    life of the mine.

    "The board will monitor dividend levels to ensure that other
    investment opportunities are able to be pursued which may generate
    increased returns to shareholders," they said.

    *****

    It must the acquisitiveness of PRIMELIFE (PLF) that's stirred
    up interest in the retirement industry but the punters are snapping up
    SUNNYCOVE (SCV) shares.

    The stock has been climbing steadily all month and yesterday
    rose 10c to a record $1.52.

    It wasn't always so.

    Listed last July, the $1 shares debuted at that price and then
    slipped slowly to 75c six weeks later.

    The sellers must now be gnashing their teeth.

    *****

    Most companies make placements at discounts so the shares will
    be taken up, but in the process hurt the market price and, in turn, all
    the existing shareholders.

    A smaller number make them at premiums which help the price.

    ROC OIL (ROC) is charging one of the biggest premiums we've
    seen.

    It has agreed to place 9.9 million shares with "two established
    institutional investors" at $2 each, an 11 per cent premium to the
    weighted average price during the past 10 trading days.

    Naturally, ROC shares bounded 12c to $1.85 after the news (and
    a late report of gas sands in a wildcat well in the UK).

    However, the shares plunged from $1.85 to $1.73 on Friday for
    no reason that we could see, unless there was something some punters
    did not like in the Open Briefing released late on the previous day.

    CEO John Doran said yesterday that the $19.8 million placement
    would allow ROC to fund potential new exploration ventures offshore
    West Africa without recourse to either the proceeds generated by the
    sale of the Saltfleetby gasfield or the funds raised by last April's
    rights issue.

    *****

    MONTEC (MTI) expects to start exporting its monounsaturated
    milk to Mauritius from either Australia or China.

    The board considers this new channel has the potential to add
    to Montec's revenue streams.

    Well, that's why most companies do things.

    Montec shares rose 1c to 59c.

    *****

    CASH CONVERTERS (CCV) yesterday proudly announced a
    "commencement of dividends", even though strictly speaking it was
    re-commencement.

    The company said it would declare an interim dividend of 0.5c
    and expects to be able to maintain a regular six-monthly dividend of at
    least 0.5c from now on.

    "This dividend commencement is the result of the steady
    improvement in the company's finances over several years," it said.

    For the December half net profit will be about $1.5 million,
    which will be down 28 per cent on the previous corresponding period.

    This doesn't seem to qualify it as "steady improvement".

    However, directors said they flagged last year that a peak in
    licence renewal fees had distorted that result in a way which would not
    be repeated in the half-year under review.

    The shares fell 2.5c to to 32.5c as puinters tried to figure it
    all out.

    (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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