around the traps ... with the ferret

  1. 4,756 Posts.
    Around the Traps ... with THE FERRET
    07:21, Friday, 11 February 2005

    Sydney - Friday - February 11: (RWE Australian Business News) -
    ******************************

    You can't quite say REEFTON MINING (RTM) did not react
    favourably to a good progress report.

    It enabled the stock to bounce back from 0.2c down at 5.1c to a
    steady 5.3c at the close.

    Wow, shareholders are probably so grateful.

    However, the diamond explorer is an example of how hard it is
    to stir up buyers at the penny dreadful end of the market.

    The company reported all of the high-quality diamonds recovered
    from onshore tenements at the Skeleton Coast Project in Namibia up to
    the end of October weighing 460 carats for 2421 diamonds, were valued
    by the well-known and internationally respected diamond industry
    valuer, Peter Talbot-Ponsonby, at $US219 a carat.

    The valuation exceeded the expectation of Reefton by 10 per
    cent where previously it had assumed $US200 a carat in its scoping
    studies.

    Mr Talbot-Ponsonby said "these diamonds would attract a premium
    to the valuation if sold under tender in Europe".

    *****

    COCA-COLA AMATIL (CCL) may have achieved an EBIT rise of just
    10.2 per cent but that did not stop it from trotting out more
    adjectives than a minerals explorer's progress report.

    The rise was due, it said, to "outstanding" results in
    Australia, New Zealand and PNG.

    Australia achieved "strong" EBIT growth of 12.1 per cent and
    "excellent" EBIT margin of 20.9 per cent.

    The "outstanding" earnings growth resulted from further product
    and package innovation, growth in non-carbonated beverages, continued
    cold drink equipment placements, new outlet expansion and improved
    in-market execution.

    Ah, we're starting to get the hang of it.

    Less than 20 per cent is "strong", above 20 per cent is
    "excellent" and together they're "outstanding".

    Oceania, After two years of "outstanding" performance, achieved
    EBIT growth of 10 per cent, which is described as "solid".

    Indonesian EBIT growth was 7.2 per cent and although it's less
    than Oceania's 10 per cent it's still "solid".

    South Korea suffered a decline in EBIT, but was still
    considered to have made "solid" progress.

    CC Amatil shares fell 16c to $8.02 because the result was below
    market expectations.

    *****

    It's been an eventful year at ADELAIDE BRIGHTON (ABC) but the
    company has "continued to focus on its strategy of operational
    improvement, expansion of the company's lime operations, and selected
    downstream integration into concrete and concrete products.

    "The strategic development of the company was impacted in the
    first half year by the distractions of the unsuccessful takeover bid by
    Boral.

    "The company has since successfully re-engaged its strategic
    momentum since this bid was withdrawn last September."

    All those strategies ... the company must be worn out.

    There's the "operational improvement" strategy, the
    "development" strategy and the "momentum" strategy.

    We never even knew there was such a thing as a momentum
    strategy, let alone that one could re-engage it.

    On the market some investors re-engaged a liquidation strategy
    and sold the shares down 4c to $1.82, even though the profit beat
    market predictions.

    *****

    Momentum was also a big factor for FUTURIS (FCL).

    In fact, it was "the ongoing momentum in financial performance
    across the group and the investments made in our operating businesses"
    that were the two key features of Futuris's results for the first half.

    "The momentum within the company is apparent in the combination
    of good earnings growth and high levels of corporate activity," it
    said.

    The shares rose 10c to $2.27.

    *****

    SUNSHINE GAS (SHG) did not waste a golden opportunity when its
    shares shot up from 50c last Thursday to as high as 69c on Monday.

    "With a view to an accelerated work program for the Tilbrook,
    Overston and Champagne Creek Projects, Sunshine Gas Ltd has reached
    agreement with a number of investors to make a placement of 19 million
    new shares at 64c each raising $12 million," the company said
    yesterday.

    "The funds will primarily be used to fast track the development
    of existing projects toward production."

    The shares, which had drifted down to 60c after Monday's
    record, bounced back to 63c yesterday.

    (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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