News for the Snoozers, part 1

Monday, 6th October 2014 10:33 - by Moosh

I thought I would begin a parallel thread of blog posts which gives a round-up of news which I obviously have an interest in due to my own investing habits..

but since I’m a bit slow on the uptake when it comes to daytrading and can barely log in quick enough before the price of a company has gone up 30% in 5 minutes, I have decided to give these news-related rises a miss most of the time, have a snooze – real or proverbial (!) – then return to see what the fuss was all about once the frenzy has disappeared to see if the news is useful to me in the long term. So hopefully any shares mentioned may be of interest to other snoozers out there too!

Servision (TIDM: SEV)

The half-yearly report was interesting on a number of fronts since not only did it mention again the distribution agreements in America and China, it also teases us with a number of future opportunities bubbling in the background regarding opportunities in Europe, the Far East, Africa and Central America. What was more important to me, was the desire to create a consistent revenue stream rather than being dependent on one-off contracts/agreements so I was happy to see the company taking positive steps towards this in the near future since it may attract long term investors who are looking for stability and growth.^1-3

Kalimantan Gold (TIDM: KLG)

The news from their copper project in Kalimantan, Indonesia, regarding its maiden inferred resource sent the share price up 900% in 2 days!! ⁴ On the one hand I wish all my shares did this, but then again, what goes up usually comes down again and this has happened for KLG. Perhaps the dust has settled now after finding below 2p again on Friday after the share went into snooze mode. The next few months will see the company ramp up discussions with interested parties related to moving on with the project so I will be watching and waiting to see if investors begin to drift in again to KLG as the year draws to an end, when a new partner should hopefully be close to coming forward.⁵ It is also good to read that KLG is working closely with the Indonesian Government on all relevant aspects of the project.

Anglesey Mining (TIDM: AYM)

Here is another junior miner which enjoyed a multiple hundred percent rise on the back of a resource statement, but this was a ‘blink-and-you-miss-it’ job since by the time I had realised it had gone up to 13p+ it was already on its way back down.⁶ Do you see what I mean about me not being quick enough?! AYM has also relaxed in price since its spike and therefore becomes one for the snoozers. After a long time with little news, the Grangesberg iron project has put AYM back on my radar again so I hope AYM can continue the momentum of talking to us regarding company happenings. I’m not really clued up when it comes to mining fundamentals so with AYM (and KLG above), the resource statement to an average investor like me doesn’t mean much more than ‘it’s a whole lot of stuff in the ground’. From an investment point of view, for any project, I would want to see how economically viable it is and whether it’s worth my attention for the long term – that is, how long will it be until the ‘stuff in the ground’ can start generating a profit which can show me an earnings per share, which is something I am more familiar with. Obviously generating a profit isn’t the Holy Grail of investment since I am aware that companies can be takeover targets purely due to an asset which has yet to be realised, but also that there can be decent price appreciation on the medium term as a major project progresses.

Empyrean Energy (TIDM:EME)

I round up today with a confirmed statement from EME that it has received indicative proposals of an offer and will update us when they are good and ready.⁷ That is nice, I guess.

References:

1. http://www.lse.co.uk/share-regulatory-news.asp?shareprice=SEV&ArticleCode=t08178vu&ArticleHeadline=New_Distribution_Agreement
2. http://www.lse.co.uk/share-regulatory-news.asp?shareprice=SEV&ArticleCode=bgf2yr2h&ArticleHeadline=New_Distribution_Agreement_in_China
3. http://www.lse.co.uk/share-regulatory-news.asp?shareprice=SEV&ArticleCode=tyvdv4gc&ArticleHeadline=Half_Yearly_Report
4. http://www.lse.co.uk/share-regulatory-news.asp?shareprice=KLG&ArticleCode=kuext17w&ArticleHeadline=Kalimantan_Gold_Announces_Maiden_Inferred_Mineral_Resource_Estimate_for_Beruang_Kanan_Prospect_KSK_CoW_Indonesia
5. http://www.proactiveinvestors.co.uk/companies/stocktube/3113/kalimantan-gold-soars-500-as-copper-maiden-resource-exceeds-expectations--3113.html
6. http://www.lse.co.uk/share-regulatory-news.asp?shareprice=AYM&ArticleCode=07f95trg&ArticleHeadline=Grangesberg_NI_43101_Resource_Estimate

http://www.lse.co.uk/share-regulatory-news.asp?shareprice=EME&ArticleCode=2u3pk6q3&ArticleHeadline=AGM_Statement

The Writer's views are their own, not a representation of London South East's. No advice is inferred or given. If you require financial advice, please seek an Independent Financial Adviser.