Best buy of today

[tricha]

In this dynamic market, everything is changing rapidly.

So we have todays buy, tomorrow could be different. Anyway I am starting with WSA and I challenge anybody to find better or debunk my case put forward.


WSA - Western Areas -

Why

1 - Extremlely low cost nickel producer.Cash costs of nickel in concentrate of A$2.12/lb for the full year (A$3.00/lb FY2010).
Due

2 - p.e of 7.5

3 - 30 June 2011, including record Net Profit after Tax (NPAT) ofA$135.0m (A$14.2m in FY2010).

4 - Due to these results, the Board has declared an unfranked final dividend of 15 cents, bringing the full
year dividend payout to 25 cents, unfranked (6 cents in FY2010). The record date for the dividend will be 16 September 2011, with the payment date 3 October 2011.

5 - Remains a prime takeover target.

[Rusty]

RMS
Picked up a few of these. Increasing profit every year from thier low cost open pit mine, have another project on the go that has big potential. http://www.stocknessmonster.com/news-item?S=RMS&E=ASX&N=183978

[macduffy]

I like RMS too but the criticism of the company has been the short life of the lucrative Wattle Dam mine - latest extension to December 2013.

Much depends on the Mt Magnet project which was due to commence in August but no mention of this in yesterday's Resource/Reserve update.

[drillfix]

What I really like about this thread is that it leaves it open to speculation and awareness.

Kinda like the soup of the day :)

[tricha]

Buy of the day

CUE - CUE energy.

P.E of 9.07 after todays incease.

So much for so little.

Shrewd would be the best person to comment on the plus side.
There are to many for me to name.
Soup of the day, hmm, exactly right Drillfix, tomorrow could be peasoup.:scared:

P.S do not hold CUE , but should, the trouble is, there are so many bargains out there.
Like RMS, WSA, CUE and many more.

Disclosure - hold FML and NGF ( my golden insurance policy)

ADE, BPT, DLS and TAP (oil and gas)

GRR and WSA ( metals)

[Corporate]

Buy of yesterday for me was KAR. Very good time to get in.

[Huang Chung]

Looks like another day for gold stocks. Both MUM and CVR seem to building up a head of steam, which I reckon will continue today.

[JBmurc]

Looks like another day for gold stocks. Both MUM and CVR seem to building up a head of steam, which I reckon will continue today.

yes I agree CVR close was very strong buyers chasing the sellers to get on the train of massive cashflows

[tricha]

Buy of yesterday for me was KAR. Very good time to get in.

With out doing research, it looks pretty sad Corporate, why would anyone buy into this, it looks like going the way of ADE, AWE, PPP and NZo to name a few.:confused:



EPS
-9.14


P/E ratio
-35.89


NTA
0.00

[Corporate]

With out doing research, it looks pretty sad Corporate, why would anyone buy into this, it looks like going the way of ADE, AWE, PPP and NZo to name a few.:confused:



EPS
-9.14


P/E ratio
-35.89


NTA
0.00





tricka, obviously you haven't done enough research.

KAR are appraising a resource with Connoco Phillips of between 3-15tcf....gas flow already proven with a high level of associate condensate. KAR have a 40% interest and on the up coming drilling campaign are carried for 80% of the first $125m.

Additionally their Santos basin assets were going to be separately IPO'd for $700m prior to the market dramas

Then there is Peru

Gas discovery with Petrobras

$280m of cash and $50m of deposits for Brazil drilling

[Corporate]

tricha, I suggest you actually do some research before making ignorance comments. KAR is nothing like NZO, AED, PPP & AWE.

[tricha]

tricha, I suggest you actually do some research before making ignorance comments. KAR is nothing like NZO, AED, PPP & AWE.

Corporate it would have been nice if you could have posted your good reasons why it is the buy of the day.

If you had put across good reasoning, then I would have followed up with some of my own research.

[tricha]

tricka, obviously you haven't done enough research.

KAR are appraising a resource with Connoco Phillips of between 3-15tcf....gas flow already proven with a high level of associate condensate. KAR have a 40% interest and on the up coming drilling campaign are carried for 80% of the first $125m.

Additionally their Santos basin assets were going to be separately IPO'd for $700m prior to the market dramas

Then there is Peru

Gas discovery with Petrobras

$280m of cash and $50m of deposits for Brazil drilling

A quick look, tells me it has high risk\ high reward. ZIt could end up like AWE:confused:

Peru and Brazil = soverign risk.

[J_Gold]

SGM

Year end 25 August 2011 resulted in a 51.6% increase in Net Profit after-tax from 2010 using only an 18.7% increase in revenue. EPS increased 44.7%.

And Corporate I agree with you about KAR

[tricha]

SGM

Year end 25 August 2011 resulted in a 51.6% increase in Net Profit after-tax from 2010 using only an 18.7% increase in revenue. EPS increased 44.7%.

And Corporate I agree with you about KAR

J Gold, why do u agree with Cororate KAR is a buy of the day. Would you buy some?
Also how many SGM do you hold, PE of 15.23.

Where do you see their upside?

[bung5]

CFE

Estimate of Current Assets ( current market cap 318mil )

Cash 80 mil ( incl sale of sappes )
Receivables 80 mil ( court case pending)
conver note 8 mil
ASX shares 80 mil (15th august )
Marampa 500m ( asking price)
Sappes 12m (after sale shareholding)
Pinnacle 150 mil ( valued from latest purchase of remaining shares)
Leichhardt ?
Australis ?
Cape Lam sth ?
Rokel ?

= 910mil

[drillfix]

J Gold, why do u agree with Cororate KAR is a buy of the day. Would you buy some?


The other day I agreed with Corp there Tricha but only for a day trade trading a 15 min chart or 60 min chart.

Looking at KAR now, it continues it's downtrend abnd the hourly chart as the 15 has completely fallen over, so no glory in holding KAR I do report.


Corporate, you are a smart cookie, no doubt you wont be holding your KAR on last weeks position, or are you?

[Corporate]

Guys I'm quite relaxed, laying on a beach far far away from this market turmoil (30 mins internet access per day, max). Tricha, suggest you grow up and reconsider your original post - flaming at best.

Drill, I'm not a short term trader. And while I appreciate charts I'm not going to jump out a window (rightly or wrongly) based on daily charts. As I've always said, KAR is a medium term hold for me.

[drillfix]

Guys I'm quite relaxed, laying on a beach far far away from this market turmoil (30 mins internet access per day, max).

Drill, I'm not a short term trader. And while I appreciate charts I'm not going to jump out a window (rightly or wrongly) based on daily charts. As I've always said, KAR is a medium term hold for me.

No Worries Corp, I wasn't sure what the plan was on this stock for you, but each to their own. Though from a day traders perspective the technicals keep me either in or out of a trade, or stops me from entering. There is no right or wrong when one has a strategy in place so its not for me to say for anybody if holding or selling or buying KAR is a good move.

Good to hear your chilled out on a nice tropical beach mate, Enjoy :)

[shasta]

Guys I'm quite relaxed, laying on a beach far far away from this market turmoil (30 mins internet access per day, max). Tricha, suggest you grow up and reconsider your original post - flaming at best.

Drill, I'm not a short term trader. And while I appreciate charts I'm not going to jump out a window (rightly or wrongly) based on daily charts. As I've always said, KAR is a medium term hold for me.

Hopefully the best buy of the day is a cocktail with a pink umbrella in it!

You're not missing much weather wise in the nations capital!

[J_Gold]

Tricha...

SGM took a bit of a hit today so jumped in and picked up a small handful of shares. Have plans to move out of other investments and get a second bite at anything below 15-16.
Check that price again in six months ;)
As for the upside, I can see them rolling their recent 12month financial performance over into the coming 12 months at least, probably 18, also be on look out for acquistions that they will be looking to value add with, timing couldn't be better for that, plus through acquiring Dunn IMO they are gonna look to get a lot bigger in the UK. The big issue of debt indicating management know the price is depressed. All signs are there imo.
Keep it on your watch list for the next halfyear report.

[tricha]

CFE

Estimate of Current Assets ( current market cap 318mil )

Cash 80 mil ( incl sale of sappes )
Receivables 80 mil ( court case pending)
conver note 8 mil
ASX shares 80 mil (15th august )
Marampa 500m ( asking price)
Sappes 12m (after sale shareholding)
Pinnacle 150 mil ( valued from latest purchase of remaining shares)
Leichhardt ?
Australis ?
Cape Lam sth ?
Rokel ?
= 910mil

It's great to see you put a case going forward Bung5.

Cape Lambert Resources has done wonders in the past, if the world has some growth, they will continue to do so.

:confused: world growth. In my opinion,this is the key to CFE.
I think they have a soverign risk issue. :confused:

Speculative.

I thought WSA was a bargain. Obviously the market debunked me.:confused:



522
http://www.sharetrader.co.nz/images/red_round_small.gif 40 7.1%
6:50 pm

Can anyone debunk my choice as WSA being a buy of the day. Please.:confused:

[biology12]

corporate,

im new to this stock, just one question, whats been happening in the last 6 months within KAR for it to be taking such a big hit namely 7 buks to 3 buks at the close of today. i know the market climate hasnt been the best at the mo but other stocks i follow (only around 20) havent taken such a big cut,

cheers

[Shaneoz]

Hi Tricha,

On a technical note Wsa has been in a weekish position.

The highs from the start of june,end of july and the start of sept are all going lower. Draw a line and you will see what I mean. I wouldnt of bought until that was broken through. Another thing to note is that the last high is 50% of the all time high and it didnt close above that level. A bit of a danger sign for me.

On the whole, as a trading stock, it doesnt look a bad investment. The april high and the august low are both on high probability turning levels off the all time high.
You could of made about 25% if you had bought and sold at those levels. Just a quick swing trade.Having breached the bottom of the bollinger band would of reinforced the bottom.
I wouldnt be too worried if I was holding (which Im not). There is support around $5.03 level and if it is breached the bollinger bands would have to turn down in a hurry. Longer term support around $4.50 at the moment.

As to a fundamental look, well you had better ask someone else. Not real up on that side of the game. If anyone wants to run a ruler over it from that side I would be interested as I dont know much about the book side of things.:confused:

As always just my 2 cents worth. Is always easy to be an armchair critic so just explaining what the chart tells me. No inference whatsoever.

Cya.

[bung5]

It's great to see you put a case going forward Bung5.

Cape Lambert Resources has done wonders in the past, if the world has some growth, they will continue to do so.

:confused: world growth. In my opinion,this is the key to CFE.
I think they have a soverign risk issue. :confused:

Speculative.

I thought WSA was a bargain. Obviously the market debunked me.:confused:



522
http://www.sharetrader.co.nz/images/red_round_small.gif 40 7.1%
6:50 pm

Can anyone debunk my choice as WSA being a buy of the day. Please.:confused:

Agree they have some soverign risk with there west african assets. This in minimized however with their cash and ASX listed and non listed assets making up there current market cap price. Anything they sell/earn in africa is the upside.... and that is a big upside.

[Corporate]

Hopefully the best buy of the day is a cocktail with a pink umbrella in it!

You're not missing much weather wise in the nations capital!

Shasta, I've heard Wellington's had hail in the last few days! It's been 28+ in paradise...the cocktails go down a treat.

Drill/Bio - will reply on next week when I'm back in NZ.

Cheers,
C

[drillfix]

Shasta, I've heard Wellington's had hail in the last few days! It's been 28+ in paradise...the cocktails go down a treat.

Drill/Bio - will reply on next week when I'm back in NZ.

Cheers,
C

Hi Corp,

Enjoy the weather and the cocktails mate, take your time and dont forget to take a few snapshots of paradise :)

cya then.

[shasta]

Shasta, I've heard Wellington's had hail in the last few days! It's been 28+ in paradise...the cocktails go down a treat.

Drill/Bio - will reply on next week when I'm back in NZ.

Cheers,
C

Yeah Johnsonville got it good, the hail was so intense it started to look like snow when it settled, apparently the temperature dropped from 12 to 4 in just 5 mins!

The thunder was as loud as i can remember in the 8 years ive been down here

Beautiful fine day in the nations capital today though must be 15 odd & not a breath of wind!

[drillfix]

Hey Shasta,

I think we now need to start a Smash, Crash and Burn thread in opposition to this thread.

What do ya reckon? :P

[shasta]

Hey Shasta,

I think we now need to start a Smash, Crash and Burn thread in opposition to this thread.

What do ya reckon? :P

Why not :D

I should add the best buy of today was a decent long black, given the number of coffee places in the capital, very few know how to make decent coffee

Now to find my lost spreadsheet on the LOW EV stocks :(

[tricha]

Hi Tricha,

On a technical note Wsa has been in a weekish position.

The highs from the start of june,end of july and the start of sept are all going lower. Draw a line and you will see what I mean. I wouldnt of bought until that was broken through. Another thing to note is that the last high is 50% of the all time high and it didnt close above that level. A bit of a danger sign for me.

On the whole, as a trading stock, it doesnt look a bad investment. The april high and the august low are both on high probability turning levels off the all time high.
You could of made about 25% if you had bought and sold at those levels. Just a quick swing trade.Having breached the bottom of the bollinger band would of reinforced the bottom.
I wouldnt be too worried if I was holding (which Im not). There is support around $5.03 level and if it is breached the bollinger bands would have to turn down in a hurry. Longer term support around $4.50 at the moment.

As to a fundamental look, well you had better ask someone else. Not real up on that side of the game. If anyone wants to run a ruler over it from that side I would be interested as I dont know much about the book side of things.:confused:

As always just my 2 cents worth. Is always easy to be an armchair critic so just explaining what the chart tells me. No inference whatsoever.

Cya.

WELL I do not follow T\A Shaneoz, but thanks for your input.
What I follow is the fundamentals and I have followed WSA for many years.
WSA has quite high debt and the reason is they have had to outlay, mega bucks to get their operation running.

But it now has huge cash flow and profit margin.

Out of these companies, it willstill be cash flow positive, if nickel was $4.00 a ilb, MCR, PAN and IGO would have to shut up shop.
I was hoping someone could say WSA is a dog because of.................


MCR

EPS
-11.70


P/E ratio
-6.79



PAN



EPS
10.80


P/E ratio
13.75



IGO


EPS
3.89


P/E ratio
119.02



WSA


EPS
75.10


P/E ratio
6.74

[tricha]

Why NGF.


NGF was until recently the dog of Kalgoorlie, were in debt to the tune of 150 million, but they have turned it around. Their net debt is now only 11 million.


1 - The new management are delivering, so I expect exciting times coming for this gold producer, with it's plant valued at less than the shareprice.

2 - Their cash costs are improving, so if you care to do a calculation, they will produce 150,000 ounces at around $1,000 an ounce.
Anything after that is basically profit.

3 - They are on an exciting new growth program.

( The only thing that could derail them is the gold price )

This is what they posted at the end of the quarter,
Strong cash position – $40.1M cash at bank(excluding $19.7M in cash backed securitydeposits).



Debt reduced by $30.0M to $50.80M – net debtat ~$11M.



Placement of $27.7M to Zijin.



Appointment of new non-executive director,Mr Xianhui Zeng.

Production Guidance



Production guidance of 150koz for FY2012 at
$970/oz C1 cash cost.

[tricha]

It was a great buy, a good double up and we have not seen anything yet. This is a real gold mine, with a real plant and real gold. 150,000 ounces a year, upside and at todays price of gold. 100 million profit for a year.



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