crazyjimsmith

Wayne Swan's Temporary Deficit!

noreply@blogger.com (CJS) — Tue, 05 May 2009 04:53:10 PDT

It was only six months ago that the dumbest treasurer in the world, our Wayne Swan, was talking about a $40 billion hole in the budget.

The spin here was that it was 'temporary.'

Today our dumb treasurer comes clean and hits us with $50 billion deficit and more likely to be much greater. In one year this treasurer has presided over a $70 billion reversal!

From a $20 billion surplus to a $50 billion deficit and that is just going by what he is telling us so far!

Here's what he had to say about this drastic reversal at a press conference today:

Since admitting late last year that the Budget would fall into deficit, the Government has continued to describe the fall into red as a "temporary" measure. Speaking after the Reserve Bank's decision to leave interest rates on hold, Mr Swan said continuing weak international and domestic demand will force a deficit for a "longer period of time".

But he would not reveal a specific timeframe.

"There's no doubt that the deficit will last longer, the temporary deficit will be longer as a consequence of revenue downgrades imposed on this country by the rest of the world," he said.

So the 'temporary' deficit will last longer.........?

Here's a simple question for the knuckle head treasurer Wayne Swan.

How much longer before you stop calling it 'temporary?'

Volatility Index Continues Downward!

noreply@blogger.com (CJS) — Fri, 24 Apr 2009 17:25:17 PDT

The last time I posted about the Volatility Index back in late March, we were seeing the downward trend continuing to hold with a test of a major support line at 40.

An updated chart shows a solid break through 4o and a test of the next major support line at 35. At the beginning of the week we saw a major bounce off that support line but as the market jitters eased over the bank stress tests in the US, we are now starting to see another attempt at breaking through the support line at 35.

The US continues to show encouraging signs of gradual recovery and the VIX is confirming this with the main downward trend continuing to hold its path downward.

India Resources (IRL) Jumps On JV News

noreply@blogger.com (CJS) — Mon, 20 Apr 2009 00:23:40 PDT

India Resources (IRL) managed a 95% gain today on the back of news of a JV with a subsidiary of Indian conglomerate Binani Group, with the right to earn a 51% interest by spending US$1.1m.

Here's the interesting part from the announcement:

In the application area IRL has previously announced an exploration target3 of between 95-135 million tonnes at between 2.2 to 4.5% Zn, 0.7 – 1.8% Pb in several discrete areas, including the Sindesar Kalan East deposit. This is based on historic resource estimates by Geological Survey of India (GSI), over 400 historic diamond holes that IRL has compiled into a 3D model and on IRL’s own diamond drilling. Higher grade lenses occur in the area and will be especially targeted. IRL intersected a best result of 7m at 7.6% Zn and 1.0% Pb from 424m depth in its own drilling at North Sindesar Ridge, showing the potential.

RBG will assist the grant process of the PL and ML applications, and will fund further exploration drilling targeting mineral resources. IRL welcomes the interest and commitment from one of India’s premier metals companies, and particularly the backing from State owned mining enterprises, and looks forward to a positive relationship in developing a new mine in this area.

That shows the potential size of the project and the market responded accordingly sending the stock up to a new six month high of 3.9c.

India Resources is already a copper producer that has been heavily oversold so a recovery was overdue regardless of today's announcement. With base metals staging a solid recovery expect higher prices in the short term.

Kevin's Recession 09

noreply@blogger.com (CJS) — Mon, 20 Apr 2009 03:10:00 PDT

With Chinese retail sales jumping 15.9% for the first quarter of 2009, clear signs of a recovery from the US, and markets across the world rallying strongly off their March lows........

This is what Kevin Rudd is telling us............

AUSTRALIA will inevitably slip into recession, Prime Minister Kevin Rudd says.

"The worst global economic recession in 75 years means it's inevitable that Australia will be dragged into recession," Mr Rudd told an economic forum in Adelaide today.

"The challenge for government is to cushion the impact of recession on business and jobs, through the actions we take, through economic stimulus strategy."

Mr Rudd said seven of Australia's 10 largest trading partners were in recession.

"The severity of the global recession has made it impossible for Australia to avoid a further period of negative economic growth," he said.

A recession is technically defined as two consecutive quarters of negative economic growth. Total gross domestic product declined 0.5 per cent in the December quarter, compared with growth of 0.1 per cent in the September quarter.

It was the first time the economy had contracted in a quarter in eight years.

It makes you wonder if this Federal Labor Government has something to hide.........?

Their rank incompetence perhaps?

Neuren Pharmaceuticals (NEU) Breakout!

noreply@blogger.com (CJS) — Fri, 17 Apr 2009 02:45:16 PDT

One of the stocks that I tweetered about today was Neuren Pharmaceuticals (NEU) and as you can see from the above chart we witnessed a solid breakout today, with the stock managing 107% gain for the day, closing just above previous resistance at 2.7c.

The forum actually picked up on the run in the stocks yesterday but a forced trading halt from the ASX to allow the company to reply to a price query prevented us from catching it earlier.

This morning the company issued their reply and we saw a strong open at 2c before a bout of jitters caused a collapse down to 1.5c. The price stabilised and for those brave enough to continue holding a very nice gain was made from the ensuing rally!

Going back to the chart we can see a solid spike in volume and as mentioned earlier, a close at 2.7c, which is just above the previous day's 2.6c high. There is also a substantial gap at 5c in the chart that is yet to be filled and we may see that target get hit in the short term.

Something worthy of noting was the actual ASX price query reply from the company today:

1. As recently noted in the Company’s 2008 Annual Report, Neuren has for some time been in negotiations relating to two of the Company’s programmes:

a. with regard to the development of NNZ-2566 through Phase 2 trials and beyond, new investment sourced from the US market is being sought to compliment the previously announced US Army funding; and

b. with regard to the preclinical cancer programme a partner is being sought to enable development to a value point which will allow further partnering or collaboration.

These negotiations are incomplete and the Company is unable to announce further details. Once negotiations are complete, expected to be in the next two to three weeks, a detailed announcement will be made.

While the Company does not believe that these negotiations are an explanation for recent trading in the Company’s shares, if either or both of these negotiations are successful they could be expected to have a positive effect on the Company’s share price, particularly having regard to recent price levels.

Good luck to all holders!

Labor's Weak Stance On Boat People

noreply@blogger.com (CJS) — Wed, 15 Apr 2009 21:49:45 PDT

Since the Labor Government got elected and changed the laws on illegal immigrants we have seen a steady increase in people smuggling into Australia.

This is the end result...........

THREE asylum seekers have been killed in an explosion on board the latest boat to be intercepted by the Australian Navy.

WA police have confirmed 3 people have been killed in the mid-ocean blast, with many others injured...

Two other passengers are missing, possibly drowned, while the remaining 44 boatpeople who were on board are suffering a range of injuries, including serious burns, sources told The Australian.

The explosion is understood to have occurred 2-3 hours ago as the boat, carrying 49 people, made its way to Christmas Island, after it was intercepted at around 12pm AEST yesterday two nautical miles off Ashmore Reef, 610km north of Broome.

The above story does not say how or why the explosion occurred but my understanding is that it was the result of petrol being poured onto the boat by the illegal immigrants.

Prima Biomed (PRR) - Breakout!

noreply@blogger.com (CJS) — Tue, 14 Apr 2009 03:41:00 PDT

I have mentioned before of my knack at being able to spot the buyers before they actually start to really hit a stock and today's 43% share spike in Prima Biomed (PRR) was something that was actually picked up on the last trading day of last week, which was Thursday and at the very close of trading.

There was only one trade that day and it was at the closing auction but the after more than two weeks of selling it was actually a buyer and he was keen to buy. I alerted the forum that this stock would most likely trade higher today and as it turns out, Prima Biomed closed at 2.3c and was just off the 52 weekly high.

The forum has been watching this stock since news of their ovarian cancer treatment was nearing commercialisation and the recent European patent win sent the stock to a new 52 week high of 2.4c back in late March. The sellers drove the stock down to 1.5c thereafter but that all changed today.

Wells Fargo Wows The Market

noreply@blogger.com (CJS) — Thu, 09 Apr 2009 16:18:02 PDT

The other day I posted a snippet about China being bullish. In that blog post however, I acknowledged the point but I stipulated a strong preference for oversold financial stocks and listed property trusts (AREITs).

Last night the Dow Jones futures index jumped sharply before the US markets had opened. For a few moments I was sitting and waiting to find out what had caused the sudden spike........

And then the news came through with Wells Fargo (NYSE:WFC) announcing an expected record $3b net income for the first quarter;

Wells Fargo & Co. Issues Q1 2009 Earnings Guidance Above Analysts' Estimates
8:00am EDT

Wells Fargo & Co. announced that for first quarter of 2009, it expects to report record net income of approximately $3 billion or approximately $0.55 per common share after preferred dividends, including $372 million in dividends paid to U.S. taxpayers on the U.S. Treasury's Capital Purchase Program investment. According to Reuters Estimates, analysts were expecting the Company to report net profit of $1.2 billion and EPS of $0.25 in first quarter of 2009. s

The US financial sector in particular has been heavily oversold and when the news came through of the record profit, the large US financial institutions rallied strongly! The Dow Jones broke through 8,000 closing at 8,083, up 246 points for the day.

Wells Fargo gained 31%, Bank Of America gained 36%, Citigroup gained 12%, JP Morgan gained 25%, and Morgan Stanley gained 11%. These strong percentage gains are almost unheard of for blue chip stocks so to actually see almost the entire sector rallying with such strength says with resounding certainty that the recovery is on the way!

And most of the gains in the immediate future will be made from the heavily oversold financial and property sectors.

The Bull In The China Shop

noreply@blogger.com (CJS) — Wed, 08 Apr 2009 02:33:50 PDT

Right now I am not focusing on mining stocks or Chinese related investments but here's an interesting quote from an RBA board member and I think it is on the money.

Reserve Bank board member and economist Warwick McKibbin said China’s desire to buy resource assets around the world showed that already it was preparing for the next upswing in the global economy.

Mr McKibbin also pointed to “fish hooks” on charts of commodity prices and other markets as evidence that some emergence from the global financial crisis could be getting under way.

“We’ve got commodity prices rising while the Chinese appear to be confident because they are out buying resource assets all over the world in preparation for the next big cycle," Mr McKibbin said in a speech to the Lowy Institute.

For now I think it is best to just monitor the situation as I still think there is much better opportunity in oversold financial stocks and listed property trusts.

Taking Wayne Swan Seriously

noreply@blogger.com (CJS) — Wed, 08 Apr 2009 02:23:22 PDT

Yesterday, our treasurer Wayne Swan was urging the banks to pass on the full rate cut if the RBA cut interest rates.

The RBA cut interest rates by 25 basis points!

Here's what the banks actually did:

ST George Bank has become the fourth major bank to cut its standard variable home loan interest rate by 10 basis points.

The move comes after Westpac, Commonwealth Bank of Australia and ANZ lowered their standard variable home loan rates by 10 basis points in the wake of a 25 basis points cut to the cash interest rate by the Reserve Bank on Tuesday.

Do you think Wayne will get the message soon that some people can see right through him and they are not taking him too seriously?

Risk Apetite Returning

noreply@blogger.com (CJS) — Mon, 06 Apr 2009 16:36:39 PDT

Here's a little market commentary from a news article about the markets:

"Many of these stocks were sold down well past what's reasonable. Everybody was down to the level of cash backing, which was clearly ridiculous. Now that the market has warmed, it's clear that we have good assets that will run," said Peter Harold, managing director of Panoramic Resources.

A Sydney-based resources analyst said: "It's true that people are buying less liquid stocks that have been oversold, that previously they were too worried to buy."

So many stocks are rallying right now that it is difficult to keep track of them all.

Carnegie Corporation (CNM) Breaks Through Resistance

noreply@blogger.com (CJS) — Sun, 05 Apr 2009 01:14:47 PDT

Carnegie Corporation (CNM) is a stock that I have been following for quite some time but like almost every listed stock the collapse in the markets has not been kind to them either. The last time I blogged about this stock was back in December 2007 so it has been quite some time but I have always kept an eye on it as I like their Wave Energy technology and I think it has strong potential.

Anyway the forum had been told about the major resistance line that has developed at 19c and to keep an eye on a clean break being made above that level. Late on Friday afternoon trading we saw a serious break above with strong buying sending Carnegie to a close of 22.5c for an 18% gain for the day.

No announcements have been made by the company but it certainly looks like something positive is about to happen.

Galileo Japan Trust (GJT) Running On Currency Rally

noreply@blogger.com (CJS) — Sun, 05 Apr 2009 01:16:15 PDT

As you can see from the above chart I actually started following Galileo Japan Property Trust (GJT) back in November 2008 when the share price had fallen to 9c when the company had released their September Quarter Update and announced capital management initiatives.

The announcement regarding capital management included details of their currency hedging and that a fall below 60Y for a period 90 days would constitute a breach of debt covenants. I could see value in Galileo but obviously my timing was off and as the currency chart below shows, they were sailing very close to the wind.

During the markets bleakest period in early March Galileo actually hit a low of 1.7c but then rallied strongly after the market had digested their half year results.

Looking back again at the company chart we can see that by the end of March things had started to turn favourably for Galileo with a number of factors playing to their advantage. The main factors would appear to be the recovering market sentiment and improving credit markets but on the 27th of March the company also announced that they had closed out a portion of their currency hedges at no cost to them.

That particular announcement about the closing out of the currency hedges seems to have been the real catalyst sparked a strong rally in Galileo over the past two weeks from a low of 2.1c to a close on Friday at 9.4c.

That's a gain of almost 400% in the space of two weeks.

The currency chart shows AUD/JPY continuing to rally strongly so we should see added benefit to the share price as well.

In my opinion Galileo presents itself as a still very risky but good long term investment and for those who are still risk averse a very good short term trading opportunity.

Stimulus Wasted Away On Education Revolution!

noreply@blogger.com (CJS) — Sat, 04 Apr 2009 21:22:58 PDT

In February I posted a blog titled Kevin Rudd's Stimulus Stink and in that blog I predicted that the money would be wasted away. This morning I woke up to read a news article about the NSW Government forcing public schools to accept inflated quotes on proposed projects.

The article included the following example:

At Bob's Farm Public School in the State's north, staff obtained a quote for a fully-installed, single storey dual classroom for $150,000, after learning it was eligible for a $250,000 grant.
Quoted by Australian Portable Buildings Pty Ltd, the price included air-conditioning, insulation and carpets.

However, the Education Department informed the 32-student school it would be not be permitted to proceed with the tender - and the cost of its alternative, a single modular design room, would exceed its $250,000 grant limit.

In an email to federal MP Bob Baldwin obtained by The Sunday Telegraph, the school's staff said:

"The fact that $250,000 is not enough to gain a single modular design room under government contract but is more than enough with outside contracts ... is there a waste of government funding here?''

The previous Federal Liberal Government knew about the games that the bankrupt NSW Labor Government got up to so they deliberately avoided providing assistance as they knew it would be wasted. That resulted in much bickering between the State and Federal Governments and at the last Federal election it was used for political gain.

The new Federal Labor Government went into the election promising the voters that there would be a new era of co-operation between Federal and State Governments.

The end result is now being displayed and where is Lindsay Tanner, the man who made so much noise about the waste of taxpayer money?

Kevin Rudd - Popular!

noreply@blogger.com (CJS) — Fri, 03 Apr 2009 21:26:17 PDT

Here's an opinion piece about Kevin Rudd and at the very end they describe a moment where the leaders at the G20 come together.........

Speaking of Obama moments, there is an absolutely delicious slice of video magic on the website of The Australian, our sister newspaper. Shot at a G20 get-together, it shows Rudd, Obama and a bunch of other G20 types chatting amiably. The mood changes, however, when Obama greets Brazilian President Lula da Silva.

"This is my man, right here," says Obama. "Love this guy." Rudd joins in at first, placing a friendly arm around the Brazilian leader.

Then Obama adds another line of praise, describing da Silva as "the most popular politician on earth".

Whoa! Rudd is instantly crestfallen. He removes his arm from da Silva and moves away a step or two. His expression is one of wounded shock.

It's hilarious, because Rudd is utterly unable to conceal his bewilderment at this terrible injustice.

Doesn't Obama know about the 74 per cent approval ratings in Australia? Hasn't he been briefed?

Rudd's mouth actually opens and closes with no sound emerging before he composes himself for a rebuttal. Brace yourself, because this is one of the most wince-making moments in Australian political history.

Aiming to correct the US President, Rudd actually said: "The most popular long-term politician ..."

Unbelievable.

Fortunately for him, by that time the moment was lost. Nobody heard Rudd's David Brent-esque response.

You know, you really wouldn't want to make any errors while delivering food during the PM's flight back to Australia. Kevin Rudd is unlikely to be in a forgiving mood.

It made me laugh quite a lot as most keen observers are now starting to see how full Kevin Rudd is, of himself.

Dow Jones Breaks Through 8,000!

noreply@blogger.com (CJS) — Fri, 03 Apr 2009 16:21:57 PDT

Yesterday afternoon I posted a link to a Jim Cramer Mad Money episode where he declared a bull market. In that particular episode Jim Cramer mentioned the horrible unemployment data that was due and he stated that it wouldn't matter as that was the past and that the market was looking ahead.

He got that prediction dead on, as this news update from Business Week reports.......

Not even grisly job losses could get in the stock market's way Friday.

The Dow Jones industrial average clawed higher to end above 8,000 for the first time in nearly two months, and logged an impressive fourth straight week of gains.

A few technical indicators to take note on the Dow Jones chart include the break above 8,000 and a close at the high, producing a bullish hammer candle for the day. Also the continues to trade above the 50 moving average and we have seen the Dow Jones retrace to the key support line at 7,500 and bounce back up!

Looking ahead, may see further pauses as the market draws breath but expect this rally to continue as the positive economic data and developments continue to flow.

Jim Cramer Call's It A Bull Market!

noreply@blogger.com (CJS) — Fri, 03 Apr 2009 02:26:09 PDT

To get a guide on what is going on in the US I often watch Jim Cramer on CNBC's Mad Money.

Click on the link and watch the video!

Kevin Rudd's Chinese Friends

noreply@blogger.com (CJS) — Fri, 03 Apr 2009 02:18:41 PDT

Kevin Rudd is very popular in China. But lately there have been quite a few question marks about how genuine that friendship really is, and The Australian has been doing a little digging, and they have been unearthing quite a few discrepancies.

Here's one particular story that made me laugh:

The Australian understands Mr Rudd and his travelling party were under constant cyber attack during his latest trip to China, in August last year, with authorities trying to access the laptop computers and mobile phones used by the Australians.

The blatant nature of Beijing's electronic espionage is understood to have alarmed the Rudd Government and led to a further tightening of communications security procedures for senior government figures travelling to China.

Intelligence sources said Beijing had made repeated attempts to break into government and business IT networks, as well as foreign embassies based in Canberra.

Does anybody recall the outcry over our close relationship with the US when John Howard was Prime Minister?

Certain people are very quiet about our new buddies!

Stock Market Is Regaining Confidence!

noreply@blogger.com (CJS) — Thu, 02 Apr 2009 03:12:02 PDT

It is almost difficult to believe that less than one month ago I was blogging about the All Ordinaries finding support and bouncing off lows of circa 3,100, and testing resistance at 3,300.

The doom and gloom peddlers will need to have a re-think with the All Ordinaries now breaking above yet another resistance line at 3,600. You can see from the above chart that 3,600 was already tested a week ago and the All Ordinaries failed to break through.

Over the past three days we saw the market fall back to support at 3,500 and today it bounced off that line and broke though 3,600.

Many stocks moved strongly today. So many that I had trouble keeping track of them but the biggest mover with significant volume was listed hedge fund HFA Holdings Limited (HFA) with over 33 million shares changing hands and a 50% gain.

HFA is a stock that the forum has been following for quite some time and I will be blogging about this company in the near future. As my tweets have suggested, in my opinion, there are likely to be more gains for HFA in the short term.

Flinder Mines (FMS) - Buy The Rumour, Sell The Fact

noreply@blogger.com (CJS) — Wed, 01 Apr 2009 02:56:01 PDT

Today Flinders Mines (FMS) released their much anticipated JORC resource and it was unfortunately a case of 'buy the rumour, sell the fact,' with the short term traders rushing for the exit door.

Flinders opened at 9.3c and hit a high of 9.4c before collapsing to a low of 7.3c almost immediately. For those who followed my tweets the opportunity to trade the bounce from the morning low presented itself, with a high of 8.5c being reached in the afternoon but a late savage sell off ruined that for those who were too slow to take profit and sell.

The above daily chart does not look good either as the share price closed below the previous day's mid point at 8c. Furthermore 8c presented as a key resistance/support line and with the share price closing at 7.5c, the resistance line has been tested and has failed.

On a positive note the long term upward trend is still intact so in the short term the share price needs to stabilise.

From a fundamental perspective the announcement is extremely good, however the immediate future outlook for iron ore is not very encouraging, so patience will be required for those who continue to hold for the long term.

Nido Petroleum (NDO)

noreply@blogger.com (CJS) — Mon, 30 Mar 2009 01:53:33 PDT

Yesterday I made a post about my being able to spot a trading opportunity by just watching the trading action in a particular stock, and how good it would be if those price movements could be announced quickly to alert others of the move. That post was about the new SMS messaging system Twitter and that I have set up an account with them to test it all out.

Today I sent out tweets covering four different stocks and Nido Petroleum (NDO) was one of the stocks that I identified. You can follow my 'tweets' on this blog as well, and if you scroll down you will see a blue box on the right hand side showing all the 'tweets' that I make through out the day.

Getting back to Nido Petroleum, the forum actually spotted the buying in this stock on Friday and some forum members did buy in, but the market depth still had not turned favourably enough to show solid buyer support. That did happen today though and although the trading throughout most of the day was steady, the closing action was very strong and we saw a close at the day's high of 9.7c for a 14% gain.

The chart shows major resistance now being tested at 9.7c and a solid break through that level tomorrow should see Nido Petroleum push higher.

After the market had closed the company was issued a price query from the ASX and the reply was telling!

Twitter Alerts

noreply@blogger.com (CJS) — Sat, 28 Mar 2009 18:18:01 PDT

Often there are times when a company makes an ASX announcement that can substantially alter the value of that particular company. These positive company announcements can often result in gains of 100% or more in a matter minutes. Other times I spot trading opportunities by simply watching the trading action in a particular stock, which can also result in buying a stock just before it makes a substantial jump in value.

Forum members who are online and watching the market know when there is a very positive company announcement coming through, but what about when you are away from your computer and the forum?

What if there was a way to get an alerting sms to your mobile phone, or even through my blog or, your iGoogle or MyYahoo home page?

Well there now is a simple way to pick up on those announcements and that is through a new service called Twitter.

So what exactly does Twitter do? Here's a basice explanation:

Twitter allows users to broadcast 140-character messages, known as "tweets," that other users can subscribe to, or "follow." Users can read the messages on Web sites, through custom Twitter-reading software and on their mobile phones.

I have recently set up a Twitter account with crazyjimsmith as my username.

I have also added a twitter module to the blog so now you can all follow my 'tweets'. Simply go to the Twitter website and set up an account. Once you have set up an account and have you mobile phone registered you can search for my username crazyjimsmith and elect to follow my tweets.

Volatility Index Testing Major Support

noreply@blogger.com (CJS) — Fri, 27 Mar 2009 18:47:19 PDT

Many people have been stunned and caught off guard by the strength of the rally during March. Many out there are still sceptical about it being a dinky di rally, or just another bear trap.

The positive fundamental data flowing from the US is continuing with consumer spending showing a gain for a second month with February making a modest 0.2% increase.

Jim Cramer thinks this rally is the first sign of a proper economic recovery and I am in agreement with him but I am also wary of further bad economic news spoiling the party, and fear returning to seize up the markets yet again.

One thing I am keeping a keen eye on is the Volatility Index and so far so good, with the downward trend continuing and we also see that a key support line at 40 is now about to be seriously tested.

If we see solid break below 40 then that will provide further evidence of the recovery being the real deal.

Becton Property Group (BEC) Recovering On Positive Sentiment

noreply@blogger.com (CJS) — Fri, 27 Mar 2009 02:45:25 PDT

There are lots of oversold stocks out there and the most oversold sector is the listed property trusts and property developers. Becton Property Group (BEC) is one stock we have been following for quite some time now but so far I have been wrong with calling the bottom. My most recent post about Becton was based on rumours of a takeover when the share price was at 20c.

You can see from the above chart that new lows of 6.5c have been made and then the ensuing rally and establishment of a new upward trend. Up until this week the buyer support has been very patchy but that has now started to change.

One other thing to note here is the gradual run up in the new trend. It reflects the return of sentiment as opposed to the previous volatile jump to 21c, which was driven by speculation of corporate action.

Becton closed at 14.5c today making a 20% gain.

This stock has the potential to return to previous highs of $2 and more, and in my opinion is worth buying. There is risk involved here so work a stop if you want to protect your capital. Patience should win the day here.

Flinders Mines (FMS) Breaks Higher On ASX Botch

noreply@blogger.com (CJS) — Fri, 27 Mar 2009 02:00:56 PDT

For the long suffering shareholders of Flinders Mines (FMS), today's botched attempt to place the company into a trading halt, which was the fault of the ASX, just gave the already rising share price further impetus but it was no doubt a very welcome relief. For the traders it was also an opportunity to make a respectable gain with FMS closing at its high of 9.2c for at 37% gain.

We were already forewarned of the anticipated JORC Inferred Resource two days ago when the company released a drilling report which included the following:

It is anticipated that Flinders Mines will be in a position to announce its maiden Inferred Resource for the Hamersley Project around the end of March.

So the share price was already inching upwards in anticipation of the JORC resource. Other factors helping the share price trade higher include the strong global market rally, and the appetite for risk improving markedly.

Management were aware of the emerging run and attempted to have the company placed into a trading halt, but the ASX refused the request. Then the ASX grants a trading halt to allow the company to respond to a speeding ticket.

The ASX botch was astounding and yeah the resulting 37% gain was a welcome relief and a comical one as well!