ferrets report

  1. blt
    164 Posts.
    RWE 07:13:00 6317 27/10/2003 (FE) Around the Traps ... with THE FERRET
    RWE News
    7:13:020 27/10/2003

    Sydney - Monday - October 27:(RWE)
    **********************************


    Shares of broker EUROZ (ELZ) took off on Friday, starting at 79c
    and finishing at 89c, up 12c on the day.
    The ASX may well query the company over the rise but maybe it
    was the market waking up to the fact that brokers are doing good
    business in the buoyant market.
    The company suffered a net profit fall of 42.5 per cent in the
    12 months to June 30, which directors described as a year of "trying
    market conditions".
    It's been more "flying" conditions since.
    Net tangible asset backing of the shares was 42.9c at balance
    date.

    *****

    Another 8 million JB HI-FI (JBH) shares were tipped out on
    Friday as one of the market's biggest stagging exercises this year
    continued.
    More than 37 million of the 102 million on issue have now
    changed hands in less than two full trading sessions.
    The price slipped just 5c to $2.20, which shows the punters are
    not chary of paying 17 times forecast earnings.
    Profit forecasting is an art, not a science, as investors in
    many new companies have found out over the years.

    *****

    Here's another example of the overheated property market.
    PRIME RETAIL GROUP (PRX) says the high demand for retail property here
    is making it difficult to grow domestically.
    As result, it has had to turn to California for a portfolio.
    Prime says California is "one of the largest and fastest growing
    economies in the world".
    Not as far as property is concerned, it seems.
    Prime, which is managed by CENTRO, was steady at 77c on Friday, compared
    with a high/low range of 87c/74c, and yielding almost 9 per cent.

    *****

    Given the new interest in things mining, one can make some money
    fossicking among the penny dreadfuls.
    Some new shareholders in CHESTER MINING (CHT) have instantly
    doubled theirs.
    On Friday the company allotted 17 million shares at 1c to
    "various strategic sophisticated investors".
    On market the shares remained at 2.1c.
    How "sophisticated" does one need to be to say yes to 2.1c
    shares for 1c each?
    Chester on Friday also said that it had started work "in Guinea
    in Africa on its Kosoko Gold Project" which, the company says, in case
    you missed it is, er, "situated in Guinea in Africa".

    *****

    RED BACK MINING (RBK) must have a more palatable gold prospect
    in Ghana than that poor sap of an explorer INVESTIKA (IVK).
    As we all know, Investika may have reported "outstanding" assays
    from Ghana, the best of which was 13 metres of 17.84 g/t gold, but the
    shares have fallen 0.9c to 3.7c since.
    Red Back, on the other hand, equalled a year high of 57c on
    Friday before settling at 55c, double the year's low of 26.5c.
    Shareholders may have reason to be still miffed, though, because
    the shares have gained nothing from Friday's announcement the stock
    would be listed on the goldminer-friendly Toronto Stock Exchange.
    Red Back says this is the most appropriate capital market for
    the company's principal asset, the more than 2 million-ounce Chirano
    Gold Project in Ghana.
    There is strong investment demand in North American capital
    markets for gold development and production companies with projects in
    West Africa, particularly Ghana.

    *****

    SEVEN NETWORK (SEV) has had a lousy week.
    The shares touched a year high $6.28 on Monday and haven't been
    right since.
    They bottomed at $5.71 before closing on Friday at $5.79, steady
    on the day.
    But never fear, they're on the case.
    Executive chairman Kerry Stokes says in the annual report the
    network was focused on programming, marketing strategies and
    commissioning new shows.
    How radical is that for a television network!
    Wait, there's more ... "We are targeting improvements in
    audience share and re-building our share of advertising revenue."
    It's just too much!
    Friday night's announcement of a buyback will help sentiment,
    though.

    *****

    It's worked again ... the propensity for stocks to improve when
    we write something oh-so-clever about them.
    When we said it was probably natural that COMPUMEDICS (CMP)
    would describe a highlight of its year as the "bedding down" of the
    Neuroscan acquisition - it being in the sleep disorder business and all
    - the shares fell 0.5c to 38.5c.
    Last Friday they rose 2c to 42c.
    ENDS
 
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