Australian (ASX) Stock Market Forum

SRL - Straits Resources

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Tritton exploration drilling:

'Excellent' results out.

Extending known mineralisation 'significantly'.

19m@.92% Cu
3m@3.3
24m@.81.....

Actually, these aren't very good at all...

:confused:

Are they kidding?
 
SRL starting to look oversold again, but sum of parts. I've lost track of NTA after the coal breakup but they were supposed to be worth $2.50 or something just on the cash component about 6 months ago.

Anyone keeping scores here?

They are really just turning into a LIC I feel, which always seem to trade under NTA.
 
Did they end up paying out that Divi from the cash allocation?

Are they intending on paying on a regular divi?

What happened to the gold project?

A lot of questions here...does seem like a bit of an LIC...SP is looking rather weak with the way the market has been over the last few months though? :confused:

Maybe because they don't really do anything?
 
JTLP said:
Did they end up paying out that Divi from the cash allocation?
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I was sent a pile of cash from the first installment but had to pay about 50% tax on it because of an admin blunder. Not sure what happened with the rest. Was easy money in retrospect.

As far as the rest of their projects, way off the radar.
 
It would behove members to check out the NTA of Straits and what their current MC is. I believe it is getting into significant under true valuation territory like it was during the GFC.

I will do my best to find the time, but I think their investments and cash backing are way above their current MC which is a no brainer short term arb trade.

There was a comment in the Fin in regard to this this weekend. Can't post it because they make you pay for their on line stuff.

Would be great if someone could add some substantiation to this with some facts and figures.

Cheers.
 
kennas said:
It would behove members to check out the NTA of Straits and what their current MC is. I believe it is getting into significant under true valuation territory like it was during the GFC.

I will do my best to find the time, but I think their investments and cash backing are way above their current MC which is a no brainer short term arb trade.

There was a comment in the Fin in regard to this this weekend. Can't post it because they make you pay for their on line stuff.

Would be great if someone could add some substantiation to this with some facts and figures.

Cheers.
Click to expand...

Article in 'The Australian' the other day.

Straits Resources (SRL) $1.30

PSST . . . want a profitable copper mine for free, with some change left over? That's the conundrum of Straits, given its $330m market cap falls well short of the value of its cash and investments, let alone its own assets.

As of March 31 Straits held cash of $220m and an investment in Indonesian coal producer Straits Asia Resources, worth $340m. Straits also has $43m invested in other listed companies, which adds up to a theoretical worth of $603m. On the other side of the ledger, Straits has an $80m convertible note and a $50m trade finance facility.

Conservatively, that leaves at least $100m on the table. Then there is Straits' own Tritton copper mine in NSW, its Mt Muro gold mine in Indonesia and its mothballed Hillgrove antimony turf.

We're not pretending these are all top-notch assets, but given they're "free" they don't need to be. Speculative buy
 
just read on SMH


that argonaut analysts looking a safe portfolio blah blah


"Straits Resources (SRL) was included on the basis it trades at a 40 per cent discount to net tangible asset backing."


would be interested to know what the actual NTA is

i do not hold SRL (yet)
 
zerolimit said:
"Straits Resources (SRL) was included on the basis it trades at a 40 per cent discount to net tangible asset backing."


would be interested to know what the actual NTA is
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You could have read the post above yours.

Article in 'The Australian' the other day.

Straits Resources (SRL) $1.30

PSST . . . want a profitable copper mine for free, with some change left over? That's the conundrum of Straits, given its $330m market cap falls well short of the value of its cash and investments, let alone its own assets.

As of March 31 Straits held cash of $220m and an investment in Indonesian coal producer Straits Asia Resources, worth $340m. Straits also has $43m invested in other listed companies, which adds up to a theoretical worth of $603m. On the other side of the ledger, Straits has an $80m convertible note and a $50m trade finance facility.
Click to expand...

$330 MC, with $603m MC less debt facilities of $130m = $473m.

So, on that valuation, they are trading $143m below NTA.

Then add in all the property and plant etc they own...

They may be trading at such a discount for a reason (I think their Australian projects are crap) but this is definately one to watch if the market capitulates just on the coal investments.
 
Huge movement all of a sudden on SRL. Up 10c today, after rises for the previous 3 days as well. Maybe there's news we don't know, or maybe it's just herd mentality?
 
Kremmen said:
Huge movement all of a sudden on SRL. Up 10c today, after rises for the previous 3 days as well. Maybe there's news we don't know, or maybe it's just herd mentality?
Click to expand...

It made a particularly good technical breakout yesterday on the 6 month daily chart from the high of 180 in Jan of this year. A break above 150 is the next target and clearing that may see it rise to the 160 area where there is a lot of overhead resistance if you look at the 12 month daily. As you say, with only a 50% rise in volume may well be just day traders and could puff out tomorrow.
 
Can anyone else confirm the current stats on SRL.

255m shares on issue at $1.28 = $326m mc.

Indirect holding in SARL is worth about $321m.

So, just on that level, their mines are worth just $5m.

But wait, there's more.

They have $263m in cash and invstments.

:confused:

So, not including their mines, they are trading $260m under NTA, or about $1.00 ish per share.

Is this no brainer territory?
 
kennas said:
Can anyone else confirm the current stats on SRL.

255m shares on issue at $1.28 = $326m mc.

Indirect holding in SARL is worth about $321m.

So, just on that level, their mines are worth just $5m.

But wait, there's more.

They have $263m in cash and invstments.

:confused:

So, not including their mines, they are trading $260m under NTA, or about $1.00 ish per share.

Is this no brainer territory?
Click to expand...

Think back to your Brockman day's Kennas :p:

I'd just be watching the markets at present...long term stock market is a weighting machine or whatever the saying is!

The thing with BRM and SRL is that BRM were on there way to doing something and had a stockpile of cash. SRL just remind me on an investment fund but as a Miner/Energy Co. Kind of like that dud MLM :eek:
 
JTLP said:
Think back to your Brockman day's Kennas :p:

I'd just be watching the markets at present...long term stock market is a weighting machine or whatever the saying is!

The thing with BRM and SRL is that BRM were on there way to doing something and had a stockpile of cash. SRL just remind me on an investment fund but as a Miner/Energy Co. Kind of like that dud MLM :eek:
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Yeh, this is no Brockman, or even a Giralia.

But, it was dramatically oversold last time and is again. Jst sentiment and logic not in step at the moment.

At $1.38 at the moment, looks like a couple of higher highs and lows, but like eerything else at the mercy of the overall market sentiment.
 

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Looks to have bottomed, for the minute.

From their quarterly out today:

CORPORATE• Hillgrove antimony gold mine‐discussions continue
with interested parties.
• At the end of June 2010, the Straits Group cash and
investments (excluding SARL) totalled A$251 million.
• At the end of June 2010, SRL’s indirect holding in Straits
Asia had a market value of A$348 million.
Click to expand...

So, NTA around $600m.

MC at todays price of $1.44 is $367m.

No brainer a few posts ago...

Higher highs and lows still going on but not yet through the Great Wall of China resistance across $1.45-1.50 ish.
 

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Will it or won't it.

Its trying to get over the line, a significant area of resistance.
.
 

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SRL is now in the zone depicted on the chart above.
Signs of a potential turnaround in its news today and a 5c unfranked dividend in three weeks you give it the momentum to break through.

Just my :2twocents
 
Fundamentally was way undervalued and now showing clear break through $1.50 and the downward tend also. Couldn't see it get back to $7.00 from here could we? Hasn't recovered like most other copper, coal stocks really. Probably because Triton is crap, but if Cu keeps going may recover a bit more. Still fundamentally well under NTA.
 

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A follow up to my earlier post, SRL seems to be doing nicely now since it got through that area of resistance.

(click to expand)
 

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Sold today at 178.5, it goes ex tomorrow with no franking credit.

May consider buying it back when it drops below 173, it will probably go well below that as stops are triggered that haven't been adjusted for the dividend.

Should be worth seeing just as an exercise ;)
 
Boggo said:
Sold today at 178.5, it goes ex tomorrow with no franking credit.

May consider buying it back when it drops below 173, it will probably go well below that as stops are triggered that haven't been adjusted for the dividend.

Should be worth seeing just as an exercise ;)
Click to expand...

I have been playing around with some dividend stripping recently. I found that in general, the fall in share price is less than the dividend drop off. Any franking credits will be cream on top.

This is particularly true for stocks that are in prominent uptrends. It is also true for many stocks that have relatively low liquidity. My suspicion is that some retail investors forgot to pull / adjust their bid price on ex-div dates.

This observation however is based only on this most recent dividend season, and the overall market has been strong throughout the last month or so.

Will be interesting to see how SRL go tomorrow.

Fundamentally SRL is still trading well below NTA, most of which is holding in the Singaporian listed Straits Asia - but that may not have any bearing on how it fare tomorrow.
 

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