ferrets report

  1. blt
    164 Posts.
    Here's a tip for speculators in the oil market and for mining
    stocks generally from ROC OIL (ROC) chief executive John Doran.
    It coincides with our general concern over how to grade the various
    adjectives miners use in the progress reports.
    Yesterday, in an update on the Old Hills-1 exploration in
    onshore UK Dr Doran said the first target horizon was encountered at 822
    metres and "good oil shows" were observed over a net 5-metre interval.
    To put things into perspective Dr Doran then philosophised that,
    "It's always tempting to describe oil shows in an exploration well as
    'encouraging' but the reality is that until you run wire line logs there
    is no way of telling whether the shows relate to a producible oil
    reservoir or simply reflect a rock which contains immoveable, residual
    oil."
    OK, fine, but does this mean that when Dr Doran describes them as
    "good oil shows" it is not as good as "encouraging oil shows"?
    Roc Oil rose 2c to $1.64.

    *****

    Every interim and preliminary profit reporting season ends with
    an unseemly mad scramble to get the results out on the last day.
    Now the scramble is likely to be even more chaotic.
    The reporting period has been shortened from two and a half
    months to two months.
    Theoretically, this means all the companies which report in the
    last two weeks of the season, plus the hundreds of dogs which report on
    the last day already, will now all report on the same day.
    The PDF will go into meltdown.
    What it also means, of course, is that the small companies
    struggling for attention from analysts and investors will receive even
    less attention.
    But Ferret has a piece of good advice for them.
    Stop stuffing around and get the results out early.
    How some companies can live with themselves for taking up to 11
    weeks to add up the numbers is beyond comprehension.
    Here's another price of free advice - change your balance date.
    Everyone will be happier then with profit reports coming out all
    year and not only in the two days at the end of the season on the last
    days of February and August.

    *****

    There's no denying NAB has been damaged in the sharemarket over
    the forex disaster although it's been joined by the other banks in the
    falls column over the past two days.
    NAB yesterday fell 32c to $29.52, for a total loss of $1.30
    since the balloon went up last week, or a loss in market value of almost
    $2 billion.
    But these sorts of losses (and wins) are common in NAB as the
    shares wax and wane over the year, often for no reason at all.
    Why only late last year the shares fell virtually without let
    from $31.59 on October 22 to $28.53 on November 18.
    That was a loss in market value of more than $4.5 billion.
    By pure coincidence that sell-off followed an announcement that
    the board of directors had renewed Frank Cicutto's contract as chief
    executive officer and managing director until October 2006.

    *****

    Punters in AFT CORPORATION (AFT) are on tenterhooks.
    It says a communication just in from the Chinese Centre for
    Disease Control in Beijing has advised that complete testing of the
    company's 50 per cent-owned Microgenix Air Purification Equipment has not
    been finalised.
    Why?
    Because of the start of the annual Spring Festival.
    It's not all hanging by the fingernails, though. The Beijing
    centre says,
    "We are confident, from the results we have seen
    so far, that the Microgenix Equipment destroys a range of bacteria and
    viruses including SARS.".
    AFT hit 7.7c before closing at 7.3c, up 0.1c on the news, with a
    further 51 million shares changing hands.
    The stock has been one of the busiest by volume in recent days.
    It's traded a total 152 million shares in the past four days with the
    price up from 6.9c.

    *****

    The market was curiously unexcited yesterday by news VITAL
    CAPITAL's (VIT) investee company Vital Health Sciences had filed patents
    for a new pharmaceutical drug for preventing and alleviating
    atherosclerosis (the leading cause of heart disease and strokes), as well
    as Alzheimer's, diabetes, leukaemia and "many other diseases" (now
    there's an ambit claim for you!).
    The shares rose 1.5c to 24.5c at first but then slipped to close
    at 23c.
    Maybe buyers had enough after splurging on 5.8 million shares
    ahead of the announcement last Friday as the price rose 3c to 23c.

    *****

    When METABOLISM HEALTH (MHL) listed at the start of December it
    described itself as a "health and wellbeing group".
    It was anything but as a stock.
    The 20c share had their best price of 14c on debut and it's been
    losing ground ever since.
    It was down to only 6.8c when it was suspended last Wednesday.
    Yesterday it appointed an administrator. The company said on listing
    it was one of the first in Australia able to
    identify some of the causes of weight gain and obesity and deliver
    individually tailored solutions to assist clients to manage their weight
    and energy levels with its 19 clinics throughout Victoria, NSW and
    Western Australia.
    It planned to have 25 centres by June next year.
    Executive chairman James Cowling said,"Unfortunately, it is a sad
    state of affairs that the poor health of Australians will be extremely
    good for our business."
    Oh, dear.
    ENDS
    !END

 
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