Friday, December 16, 2005

SHN is now a uranium play

Primer on my investment outlook

SHN just announced a uranium play.. I think its to please the market, especially since many of the noteholders were going to sell after conversion of the notes..
However, sentiment towards uranium is good in the market. A few more good news and who knows. Stock is just 20+million AUD market cap. May go higher..
Personally I'll wait a bit for some more news from the uranium play.

Sunday, December 11, 2005

Brandrill update

Primer on my investment outlook

I have a policy of only owning convertibles or other interest rate securities for the long term. I relaxed this for Brandrill. In a commodities boom, the companies that supply services and tools to miners make the most money and consistently so. During the San Francisco gold rush, the people selling shovels and tools made a ton of money..
Brandrill is underowned and unloved. Its the largest drill contractor in Australia. Next year it forecasts a profit of at least 1.5c. Its last close was 11c. Its could go to 30c and be reasonably priced..
Again, my cost basis is less than 6c a share so I already have a double here..

SHNG update

Primer on my investment outlook

I owned SHNG - Sherlock Bay Nickel Convertibles FV of 20c at a price of 13.8c. The company went through a management restructuring due to long delays on its project. The convertibles are being converted to shares on a 7 to 2 basis. My breakeven price is 3.9c. The shares last closed at 4.5c.
I'll update the story later but suffice to say, that buying convertibles in a debt free company is a less risky bet than buying shares..

Housing Bubble Pops

Primer on my investment outlook

A rash of recent articles about the end of the US Housing bubble..
Boston market
Mish's blog