EMS 0.00% 3.2¢ eastland medical systems ltd

around the traps with the ferret

  1. 4,447 Posts.
    Around the Traps ... with THE FERRET
    08:31, Monday, July 09, 2007

    Sydney - Monday - July 9: (RWE Australian Business News) -

    It may have been a dose of TGIF Syndrome at CSR (CSR).

    CEO and managing director Jerry Mayc*ck wrote to the ASX to say
    that, "As a result of his pending retirement from CSR after 37 years'
    service, Graham Hughes yesterday retired as company secretary."

    Well, it's more ending than pending now.


    PIPE NETWORKS (PWK) also had us scratching our heads on Friday
    afternoon when it announced the company's "most successful sales quarter
    since operation".

    What operation?

    We did not even know it was poorly.

    Poorly it certainly is not.

    "The substantial increase in contracted new monthly recurring
    revenue has been bolstered by increased demand for the company's entire
    suite of products," it said.

    It was just the late Friday ticket to give its shareholders a
    good weekend.

    PIPE rose 38c to a record $3.87 and closed at $3.80.

    It's up from $2 a year ago.


    The announcement of the expectation of the release of
    preliminary results of a 200-patient US-based phase IIb clinical trial
    (PEP005-006) in actinic (solar) keratosis this month is not an obvious
    trigger for a buying rush.

    But it was for PEPLIN (PEP).

    The company was queried over a rise from 86.5c on Wednesday to
    98.5c on Friday.

    "The company is aware of press commentary in today's Australian
    Financial Review and broker reports issued by ABN AMRO Morgans and
    Wilson HTM on 4 July 2007 which comment on this pending milestone for
    the company," Peplin said.

    The shares pushed on to touch $1 and closed at 99c.


    Now this just didn't add up.

    REED RESOURCES (RDR) responded to an ASX query over a rise in
    its shares from 45c on Wednesday to a high of 59c on Friday, together
    with an increase in the volume of trading over this period.

    "We note that on 4 July 2007, the chairman, DJ Reed, sold 3
    million ordinary shares in the company to three institutional clients of
    Transocean Securities Pty Ltd," executive director and company secretary
    Christopher Reed said.

    "We believe that this transaction would have accounted for a
    significant part of the volume traded on 4 July 2007.

    "However, we note that those shares were sold to those investors
    at the price of 40c."

    What the ... if these shares were sold at 40c, how could that be
    an explanation for a rise from 45c to 59c?

    The shares closed at 50c, down 3.5c on the day.


    EASTLAND MEDICAL SYSTEMS (EMS) also did not add up, but at least
    the company gave it a good shot in explaining the reason for its rise.

    Directors noted the company had made announcements in May for
    the distribution of its Vetlok veterinary safe needle technology; the
    manufacture of ArTiMist, the new anti-malaria treatment; and the
    anti-smoking replacement therapy, NiCoSorb, with German pharmaceutical
    company HC Berlin Pharma AG.

    Also, another announcement was made on June 14 to confirm the
    start of ArTiMist production and its significant benefits to Eastland.

    The market must be getting slow.

    Eastland shares did virtually nothing in all of May and June
    despite these hot announcements.

    Suddenly, in the first week of July traders finally wake up and
    push the shares up every day of the week on sharply increasing turnover.

    Eastland rose from 14c to 26c over the five days.

    Turnover was almost 12 million shares, which is more than was
    traded in the previous six weeks.

    As the company said on Friday, "The directors believe that the
    full impact of these agreements on the company's operations was not
    fully understood by the market and the significant benefits they bring
    to Eastland, both in the short and long term."

    Also, senior management will start a number of broker
    presentations in Sydney today, although Eastland says they do not
    contain any information not previously announced to the market.


    Copyright © 2007 RWE Australian Business News. All rights reserved.


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