CUL - Cullen Resources

[Fool]

Do you think this announcement is strong enough to send the price over 10c today ?

It's generally been accepted that this stock just needed a good announcement to get people to notice it. A JV Fortesque can't be a bad thing, in fact, I can't beleive the SP hasn't gone up already.

 

[Craze0123]

I think a stable price will come in this afternoon, theres just way too many day traders clicking for anything to happen straight away (imo).

 

[YOUNG_TRADER]

The announcement was good, in that it highlights CUL's JV with FMG and that FMG clearly are interested in CUL's Iron Ore tenements,

But there are far too many day traders all over CUL, its a shame as their rapid trading makes it hard for investors to invest (I think anyway)

Also I think alot of people who bought on rumour are now selling on fact, even though this isn't the real announcement to wait for.

In any event I think CUL is now well and truly being re-rated and watched by a much much wider audience,

I will continue to hold balance interest until the SP is near 15c then I will re-assess.

 

[jtb]

I think a stable price will come in this afternoon, theres just way too many day traders clicking for anything to happen straight away (imo).

Too true.
I'm waitng to see what happens when the T + 3er's run out of time tomorrow and Friday
Was little of substance in the ann' imo and would think it should pull back to mid - high 7's (as it was doing this morning)

 

[Fool]

Too true.
I'm waitng to see what happens when the T + 3er's run out of time tomorrow and Friday
Was little of substance in the ann' imo and would think it should pull back to mid - high 7's (as it was doing this morning)

don't the T+3's have to sell on the 2nd day?

Ie, if they bought yesterday, they have to sell today??

 

[jtb]

don't the T+3's have to sell on the 2nd day?

Ie, if they bought yesterday, they have to sell today??

If you read the commsec literature (who I use) than yes T + 1 is the case and thats all I've ever tried.

However I know two guys that day trade large parcels (>$75k usually) and as long as they exit prior to close of business on T + 3 (ie before settlement) the difference just offsets (up or down).
I'm sure someone else is better qualified to answer

 

[Fool]

If you read the commsec literature (who I use) than yes T + 1 is the case and thats all I've ever tried.

However I know two guys that day trade large parcels (>$75k usually) and as long as they exit prior to close of business on T + 3 (ie before settlement) the difference just offsets (up or down).
I'm sure someone else is better qualified to answer

I did read the commsec literature... if you buy on T+1 you have to sell on or before T+2 to get the difference negated, otherwise they will deduct the full amount and give or take the difference after settlement.

Has happened to me previously and copped a fine for it.

That said, I have also had some settlements that should have got a fine for (bought on T+1 and sold on T+3) and commsec didn't fine me?

 

[zt3000]

Could all these deals with large companies .... ie FMG open up Cullen to a takeover? Is there any benefit to JV with cullen ... ie isn't it easier to just buy them out? Discuss ...

 

[UPKA]

Could all these deals with large companies .... ie FMG open up Cullen to a takeover? Is there any benefit to JV with cullen ... ie isn't it easier to just buy them out? Discuss ...

I think FMG is only interested in CUL's tenament, not the company itself, plus, it only needs to pay up to 20% to CUL if they do find something underground, if there is nothing there, FMG loses nothing bt the money spent on exploration. To me its a good deal to FMG.

 

[jtb]

I did read the commsec literature... if you buy on T+1 you have to sell on or before T+2 to get the difference negated, otherwise they will deduct the full amount and give or take the difference after settlement.

Has happened to me previously and copped a fine for it.

That said, I have also had some settlements that should have got a fine for (bought on T+1 and sold on T+3) and commsec didn't fine me?

Yes I've seen some settlement dates that I couldn't understand as well (as I short term trade in my missus' name).

As far as I know if selling at a loss than yes the deduction will still go through on T + 3 but if at a gain then the count starts again so profits go through 3 days later again (T + 7 i guess )

How much is the fine? might try it in her name

 

[juw177]

Shame it has retraced back to the price it was before the announcement. Damn day traders, get out of here and stop impeding the SP rise.

 

[Ruprect]

well, going by the volume there is no doubt that day traders have been playing with it.

However, with t+3, selling intraday, or on the day after, this should mean that many of the day traders who have bought yesterday or today have done so for the most part above .085, with the majority at much higher levels than that.

So while some of them are already out, some are also waiting to sell, thus the build up of sell orders from .085 to the .09's.

Those that are out already, may well be looking for another opportunity in the low to mid 8's to buy up again. They may well seek to take the opportunity of buying those shares that have to be sold today to meet the t+3 criteria.

 

[zt3000]

I think FMG is only interested in CUL's tenament, not the company itself, plus, it only needs to pay up to 20% to CUL if they do find something underground, if there is nothing there, FMG loses nothing bt the money spent on exploration. To me its a good deal to FMG.

aha... point taken and duley noted why didn't i think of that well as long as you learn something every day its all good. thanks UPKA

yeah, day traders are ruining it for everyone else haha

 

[Fool]

aha... point taken and duley noted why didn't i think of that well as long as you learn something every day its all good. thanks UPKA

yeah, day traders are ruining it for everyone else haha

I cannot beleive on a good announcement, this stock is going to finish in the red.

That to me screams insider trading

 

[Fool]

I cannot beleive on a good announcement, this stock is going to finish in the red.

That to me screams insider trading

I received a broker report today basically complaining about companies like Cullen having strange trading patterns:

1. huge volume
2. speeding ticket "we know nothing"
3. JV announcement
4. huge volume dumping the stock.

They basically said that the MD's should be in the **** for allowing the information to be leaked early.

 

[zt3000]

Once all the day traders wash out and finish manipulating the price it should settle down and get re-rated ... and also for your information FMG was up today
dyor

 

[YOUNG_TRADER]

I cannot beleive on a good announcement, this stock is going to finish in the red.

That to me screams insider trading

Fool makes a very very good point,

As it was only Monday when the stock was trading below 7c, I remember seeing 8c get cleared in 1 5m order on Monday thinking OMG! What just happened,

Surely this JV deal was underway for what a few weeks? I think insider trading can't be ruled out, although it may just be a coincidence given the day traders etc etc

For me today's ann came completely out of left field though as I was expecting

1. AQA Pre Feasibility study

2. BHP Nickel drilling

3. FMG news on original Iron ore tenement


I didn't even know that they had these other tenements that they just JV'd,

Makes me think how much more ground does the company have that they're trying to JV out?

 

[doctorj]

The real question is does this add value to the company and if so how much?

A sell off on an announcement is normal. Perhaps insiders did have wind of this earlier on in the piece but the truth is mining companies leak like a sieve and life still goes on.

 

[YOUNG_TRADER]

The real question is does this add value to the company and if so how much?

Hey Doc,

Not sure if it adds value, like i said before though

For me today's ann came completely out of left field though as I was expecting

1. AQA Pre Feasibility study
2. BHP Nickel drilling
3. FMG news on original Iron ore tenement

I didn't even know that they had these other tenements that they just JV'd, makes me think how much more ground does the company have that they're trying to JV out?

I'm going to try and work out just how much grounds CUL has in Pilbara, I thought that they had already JV'd everything

 

[idaho]

Regarding the T+3 situation with com-sec I have stretched a few trades to the limit and then paid $54 dollars for an early settlement on a sell on the day that a settlement is due on another trade. They didn't like that and put my account on a temporary "sell only" restriction. I actually sold Cullen today at 9 cents to pay for a settlement due tomorrow on FWLO. I rang them to ask for early settlement on CUL, told them happy to pay $54 dollar fee. They said they would check their acct. dept. and get back to me. They rang back and said they didn't approve of their clients requesting early settlement to cover purchases, even with one day's notice. I think it depends a bit on how much money their clients trade with. I'm sure the amounts I trade with don't rate the vip treatment. Bigger players probably get away with covering on settlement date.
Regarding Cullen's price and volume increase before announcement, and drop after announcement, it is one of the most obvious insider trading episodes I have ever had the displeasure to witness. Unless the impossible occurs, and something is actually done to stop this form of ripping off the shareholders, I have no doubt that we will see any future announcements by Cullen coming before they get to ASX.

Idaho ( Beautiful country. Too bad about George Bush)