Watching Brief

Dedicated to potential opportunities we haven’t pulled the trigger on yet. Tracker here.

Blue Chips

STO: Santos WAIT. Much talk is being made of the balance sheet strength and the need for more capital. Share price is extremely volatile and it is falling with good reason given the position the company finds itself in being at peak Capex after a use fall in the price of their main business line.  The board seems to believe they have more options than the market does, any capital raise is more likely to take the form of a renounceable rights issue given the amount of equity being bandied about. Most likely capital will come from divestment. APAs purchase of  the BG Pipeline highlights the cheap(er) ways STO will be able to raise equity if required.

 

 

Consolidators:  demand a lot of capital, often good market capitalisation,earning momentum, just watch the valuations. 

CAJ: Capitol Health WAIT: Just raised, left retail holders out, I expect CAJ Management may listen to them shortly, probably at the next acquisition.

AMA: AMA group ADD. We will be taking a small position in line with an expected raising in 1h-2015. Companies consolidation efforts are accelerating and share price momentum is gaining, likely getting to the end of internally funded acquisition opportunities.

SGH: ADD Pipeline of acquisitions looks like it will have a big raising in Q1 or Q2

 

NSR,ENN,FLK,FET,GXL,GEM,QUB,RFG,AMA,DUE

 

 

Speculatives: Generally we stay away, often poor business models, poorly financed and prone to large holders exiting impacting price, liquidity very poor  Occasionally they produce spectacular opportunities, normally you will just get burned.

 

TON: Triton Res WAIT: clearly cum capital raise to buy the last 20% of balama it does not yet own. Graphite sentiment is weakening dramatically, retail dominated register, small market cap.

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