around the traps ... with the ferret

  1. 4,756 Posts.
    Around the Traps ... with THE FERRET
    07:52, Tuesday, 22 March 2005

    Sydney - Tuesday - March 22: (RWE Australian Business News) -
    ****************************

    What was ROC OIL (ROC) CEO John Doran talking about in his Open
    Briefing with Corporatefile yesterday, "I would emphasise one key
    point: if the oil price falls below $US30 a barrel for any significant
    period of time ... "

    BELOW $US30? ... we wish.

    However, it was a good pointer for investors.

    High prices don't last forever in oil ... or in coal, iron,
    uranium ...

    Mr Doran said ROC had generally taken a conservative view of
    oil prices.

    "We like to think that we still do," he said.

    "We said last year that we think we're in a price upswing that
    could last much longer than people would have expected a year or two
    ago.

    "Arguably, the downturn in the oil price during the 80s and
    90s, lasted for 10 or 15 years; there is no reason why the so-called
    high oil prices (above $US30) wouldn't prevail for several to many
    years into the future.

    "The worry is that, once a public and industry consensus forms,
    the oil price has a cantankerous habit of heading off in the opposite
    direction.

    "At the moment though, it's easier to envisage a small incident
    in the Middle East sending the oil price to some point north of $US60
    than to imagine oil prices consistently below $US30 any time soon."

    ROC shares moved north of $1.90 yesterday ... up 2c to $1.94.

    *****

    We've been keeping tabs on uranium stocks but they can still
    sneak up on you.

    On March 10, when OMEGACORP (OMC) announced an MOU to acquire
    some uranium projects in southern Africa and Tanzania, we reported the
    news, and the sharp rise that followed it that afternoon (from 41c to
    70c), and promptly forgot about the stock.

    We were reminded of Omegacorp when the company yesterday
    advised due diligence on the projects was progressing well.

    Omegacorp, it turns out, has not stopped soaring and touched
    $1.14 on Friday.

    However, the bubble has burst a bit and the shares yesterday
    fell 9c to 97c.

    The market obviously wanted to hear something more bullish than
    that due diligence was "progressing well".

    *****

    Still on uranium and still in Africa ... REEFTON MINING (RTM)
    had another monster day following Friday's announcement it had
    discovered a new uranium target at its wholly-owned Erongo Polymetallic
    Project in central Namibia.

    It said it had "commenced radiometric surveying returning
    significant readings up to 94,320 counts per minute thereby indicating
    the presence of uranium bearing mineralisation".

    The shares soared 4.4c to 11c on turnover of 99 million shares
    for the day.

    Yesterday it rose a further 4c to 15c before closing at 13.5c
    on turnover of 57 million.

    Total issued capital is 242 million shares.

    *****

    Here's a list of uranium hopefuls to keep an eye on.

    We spotted them in the paper over the weekend.

    They include PALADIN (PDN), SUMMIT (SMM), HAVILAH (HAV),
    MARATHON (MTN), CURNAMONA (CUY), DEEP YELLOW (DYL), GOLDSTREAM (GDM),
    AGINCOURT (AGC) and INVESTIKA (IVK).

    As well as ERA and WMC RESOURCES, of course.

    *****

    And Antony on email has alerted us to yet another one.

    COMPASS RESOURCES (CMR) copped a speeding ticket back on March
    11 after its shares had risen from 35c to 45c in the preceding three
    days.

    They promptly shot up further to 65c after the reply to the ASX
    query.

    There was nothing new, just investors waking up to what had
    been announced in the December quarterly report.

    Directors said they believe the price rise reflected a number
    of factors.

    First, investor interest in resources, second, companies such
    as Compass with large resource inventories of base and speciality
    metals were being favourably viewed and, third, the company had
    announced in the December quarterly that it had applied for a number of
    new tenements with favourable uranium, gold and platinum group metal
    potential.

    "These applications together with the company's granted
    tenements in the Batchelor region give Compass control of the great
    majority of the high potential Rum Jungle uranium field."

    On March 11 Compass was "currently compiling extensive data
    from uranium exploration programs conducted between the 1950s to the
    1980s.

    "As far as we are aware no uranium exploration has been carried
    out in this area since the late 1980s.

    "The company will announce any results that are significant
    when the initial data compilation program is complete, which is
    expected within the next few weeks," directors said.

    Compass started hotting up again yesterday with the shares
    putting on 10c to 60c.

    *****

    SKYNETGLOBAL (SKG) has won $29 million worth of orders for home
    automation products for upscale residential apartment buildings in
    Moscow and Kiev.

    So that's where the property boom has spread.

    The size of the deal, with its revenue and profit implications,
    is significant, SkyNetGlobal says.

    "Equally important, we do not see this is as a once-off
    transaction in the region," it says.

    "The luxury home market in emerging countries like Russia and
    Ukraine is booming in response to demand from newly rich locals, as
    well as expatriate executives from leading multinational companies.

    "We expect to do more deals of this kind in the Middle East,
    China and India as well."

    The market was so impressed SkyNetGlobal shares rose 26c to
    $1.45 at one stage before closing at $1.27.

    (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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