around the traps ... with the ferret

  1. 4,756 Posts.
    Around the Traps ... with THE FERRET
    08:06, Monday, 7 February 2005

    Sydney - Monday - February 7: (RWE Australian Business News) -
    *****************************

    When SDI (SDI) issued a profit downgrade on December 23 it was
    preceded by nine days of falls in the share price from $1.73 to $1.41.

    Now it's risen on four of the six past days ahead of an upgrade
    to the downgrade - from $1.18 to $1.30 on Friday (up 2c for the day).

    After the close it said that instead of "minimal" profit, as
    forecast on December 23, the company now expected net profit of about
    $100,000.

    This is equal to earnings per share of 0.08c, which still seems
    pretty minimal.

    *****

    SYNERGY METALS (SML) may be a minnow but when it makes
    placements it doesn't make them to just anybody ... it makes them to
    institutional, professional AND sophisticated investors.

    It's just raised $746,000 with an issue of 5.33 million shares
    at 14c each and rose 0.5c to 15c after the news.

    That was surprising given the shares came with free options on
    the basis of nine options for every 16 shares issued, exercisable at
    only 10c and expiring in February 2007.

    Maybe Synergy has hit on a way to keep the placement price near
    the market price (because shares almost always fall if a placement is a
    lot lower) and then still make it attractive for all those
    institutional, professional AND sophisticated investors with the cheap
    options.

    Synergy will used the money for continuing exploration and
    development work at the Glen Wills and Sunnyside gold project in
    Victoria, and for working capital purposes.

    *****

    We know it's difficult but we wish mineral explorers would try
    harder to make their progress reports a tad less incomprehensible for us
    ordinary punters.

    HALYCON GROUP (HCY), for example, may as well have written its
    report in Swahili on Friday.

    "... recent drill testing of the company's off-hole conductor at
    the Bardoc Project intersected sulphides with assays of up to 0.1%
    copper. A down-hole electromagnetic (DHEM) survey of the drill hole has
    returned a stronger off-hole response than the previous conductor. The
    company regards this as an extension of the high priority nickel
    sulphide target and drilling to test this zone has already commenced.

    The follow-up drill hole will be adjacent to the last line of the
    original ground transient electromagnetic (TEM) coverage on this part of
    the basal contact, in which there is an EM anomaly that is still open
    along strike for 1.1 kilometres."

    Off-hole, down-hole, off-hole ... please, no more.

    The annoying thing is, SOMEONE understood it and it must have
    been good news because Halcyon shot up 0.5c to as high as 2.7c and
    turnover was massive (like sulphide) at 43 million shares.

    *****

    You just can't tell with floats.

    Some are inexplicably popular ... such as GLOBAL PROPERTIES
    (GPB).

    It made its debut on December 24 at 30.5c and started climbing
    straight away.

    On Friday it peaked at 85c before closing at 80c, up 7c on the
    day.

    NEUREN PHARMACEUTICALS' (NEU) 40c shares open at 40c on Thursday
    and finished on Friday at 35c.

    The lack of interest comes despite key investors in the company
    including Pfizer and Macquarie Bank's venture capital arm, Macquarie
    Technology Fund.

    Still, it's only been two days.

    The biotechnology company has successfully completed Phase One
    clinical trials.

    Its lead compound, Glypromate, aimed at the treatment of cell
    death associated with brain injury, was found to be safe and well
    tolerated in these trials.

    *****

    You have to feel sorry for NATIONAL BANK (NAB) shareholders.

    Just as the bank prepares to deliver a major update on its
    European operations today, a weekend business TV program does an
    embarrassing piece on how someone relieved the bank of $70 million in
    Ireland.

    The bank itself added to its recent tally of stumbles and
    mishaps late on Friday with news of decisions related to two legal
    actions - a South Korean legal action involved a finding of $50 million
    against NAB and a US legal action for $36 million in favour of NAB.

    That stills leaves NAB $14 million in the hole.

    The Korean action involved forgery of certificates of deposits
    and promissory notes by a former employee.

    The US case involved a tax dispute.

    On market, however, NAB has just racked up eight small share
    price wins in a row.

    It's risen every day since $28.72 on January 24 and on Friday
    put on 11c to $30.13.

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

    ENDS

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