ECH - Echelon Resources

[chris1983]

Chris1983, I have to say well done. You picked it out when it only in 60c to 70c range, right now it is 160. Amazing. What a pity, I am not with you on this one.

Thanks mate. There will always be others. I just made my next purchase. Another spec play. Will post on it later. Your on Arrow energy right? No complaints from that one this morning.

 

[chris1983]

Announcement out. Another raising but at an excellent price. It hasnt been above 1.50 for very long at all. IMO Ech should run further off this announcement.

SHARE PLACEMENT TO RAISE $18 MILLION

The Directors of Echelon Resources Limited (“Echelon” or “Company”) are pleased to advise that the Company intends to, subject to shareholder approval, make a sophisticated investor placement of 12 million shares at $1.50 each to European and North American clients of Haywood Securities. The issue will raise $18 million before expenses.

As previously announced, Haywood Securities has been engaged to act as the Company’s exclusive lead agent for an intended listing on the Toronto Stock Exchange (“TSX”) later this year. The placement is anticipated to facilitate interest in the Company ahead of its TSX listing. Proceeds from the issue will enable the Company to expand and accelerate the exploration
programs on its existing projects in Queensland and Western Australia, as well as to pursue new business development opportunities and provide general working capital.

 

[chris1983]

Im surprised in the lack of action after this news. This news is very significant. Its not a little placement. We only just recently broke 1.50 off little volume. Anyway it should be an interesting couple of months ahead. Airborne radiometric survey results from Yeelirrie and then followed by the results from the QLD radiometrics will be released. I think this will give the SP a nudge well above the placement price of 1.50.

 

[chris1983]

Good announcement. New substantial holder from JPMorgan. They have acquired 5.51%

JPMorgan Chase & Co. and its affiliates

Good show of confidence.

 

[Sean K]

Where do you reckon support is for this Chris? I suppose you haven't looked at the chart because you're a fundamental investor, but do you see any drama with the shape of this chart?

 

[chris1983]

Where do you reckon support is for this Chris? I suppose you haven't looked at the chart because you're a fundamental investor, but do you see any drama with the shape of this chart?

Kennas from what you have posted with the chart I see drama..especially when you look at it from a chartist view. If they are raising funds at 1.50 though and they get the raising completed then everything is fine. We know the results for the airborne radiometrics survey is drawing near for their yeelirrie tenements. This will help support the SP IMHO or even push the price higher. I expect the results to be good.

I did take some of my holdings off the table though and the rest is now free carried...like I said no matter how much I like a stock you have to stick to your trading plan. I think the price will push higher which is why I havn't completely sold out. At 1.50 they will have a market cap of around 65 million but 22 million of this will be in cash due to the placement. Not bad IMO. Very strong management onboard and projects in close proximity to two very large deposits..historical drill results are now also available for some of their QLD tenements. The historical data also contains some very high grade readings and I believe they will find more historical data showing promising results.

ECH also hold 3.5 million shares in IOH which is worth 1.8 million. With a TSX listing on the cards and JPMorgan recently buying into the company overseas support for ECH is looking very good.

Dont forget Paladin will be watching ECH very closely. PDN have a 50% holding in a number of ECH's QLD tenements so a takeover could be very possible in the future. Not right now..but the possibility will be there. All in all ECH have the make up of a great spec IMO.

 

[chris1983]

Below are the prices paid by JPMorgan. They have paid an average price of around 1.64. This is where all the constant buying was coming from. I'm guessing part of the 18 million being raised will be taken up by these guys.

 

[chris1983]

Echelon is just hanging around atm. Moving back up to that 1.50 target. The price they have made their placement at.

"The Directors of Echelon Resources Limited (“Echelon” or “Company”) are pleased to advise that the Company intends to, subject to shareholder approval, make a sophisticated investor placement of 12 million shares at $1.50 each to European and North American clients of Haywood Securities. The issue will raise $18 million before expenses."

18 million in cash..plus they still have like 5 in the bank? Thats a lot of cash for a company with a market cap of just under 50 million. I think there will be a re-rating if they do manage to raise this much money to Canadian investors.

 

[ta2693]

I am wondering Is the investo really that good at making money? I know they make a lot of money every year. but where is their big money from ,trading department or M&A department or IPO endorsing business?

As far as I know, DB investment department is a failure and DB is going to sell their investment department in Australia. I am not sure others' performance.
A lot of shares I noticed when Investo show up, the price begin to goes down. i.e. Investos are losing money at least in short term. e.g. ERN MLX ARR, and ECH.
When LB Eu show their position in ERN, Ern falls down from 110 to 90
When Mac bank show their position in ARR, ARR falls down from 380 to 340
when JP morgan show their position in MLX, MLX falls down from 44 to 33

So I conclude a new investo major shareholder casts shadows on the share's future, at least in short term (3 month)

 

[chris1983]

I am wondering Is the investo really that good at making money? I know they make a lot of money every year. but where is their big money from ,trading department or M&A department or IPO endorsing business?

As far as I know, DB investment department is a failure and DB is going to sell their investment department in Australia. I am not sure others' performance.
A lot of shares I noticed when Investo show up, the price begin to goes down. i.e. Investos are losing money at least in short term. e.g. ERN MLX ARR, and ECH.
When LB Eu show their position in ERN, Ern falls down from 110 to 90
When Mac bank show their position in ARR, ARR falls down from 380 to 340
when JP morgan show their position in MLX, MLX falls down from 44 to 33

So I conclude a new investo major shareholder casts shadows on the share's future, at least in short term (3 month)

Very interesting comments. I must say that it is very hard to accumulate large holdings in ECH though. They accumulate big around those levels such as JPMorgan in at around 1.65 average and they are probably expecting them to run well past $2. Of course they dont buy them expecting them to go down. Should be interesting to see how they perform over the next 12 months..along with Erongo etc. Those investments they made may turn out to be very sound investments.

 

[ta2693]

I understand investos in ech may expect it to $2.
My question is should we stand on their side? I think following the steps investos is not a good strategy.

 

[chris1983]

I understand investos in ech may expect it to $2.
My question is should we stand on their side? I think following the steps investos is not a good strategy.

I dont follow their steps which is why I was in at the 60 cents level. Its just a good sign to me them buying at those levels more than $1 above the price I paid. Plus if the raising at 1.50 goes through that is also almost a dollar above my entry point. Good signs for me. Of course anyone entering now has more level of risk but IMO this one will run further. Read back through the thread as to why I think this is a good uranium play in Australia. Market cap is still quite cheap. If the raising at 1.50 gets completed they will have 20+ million in cash and there are a few announcements to follow such as the Airborne radiometric results from both their yeelirrie and QLD tenements. Both tenements are straddling some of the largest deposits in Australia and one of those deposits is the largest Calcrete deposit in the world. Lots of speculation but dont play the specs if you dont want any risk involved. Still plenty of upside left IMO.

 

[Sean K]

Should be a bit of support around $1.10 ish I suppose. The indicators on this chart are as bearish as you can get. It'll find a point where it's fair value I assume. Those instos buying in at $1.50 must be happy. But what would they know?

 

[chris1983]

Im free carried on this so its all good. I said I wasn't going to sell untill i got the results from the Airbornes. Plenty of news to come with Airborne radiometric results in some of the most prospective areas for uranium in Australia. Straddling yeelirrie and summits deposits. Panickers started jumping in. Its traded 160k shares. Not worried about the action just yet.

 

[Sean K]

Im free carried on this so its all good.

Just because you're free carried doesn't make it all good IMO. Is it your money, or not? Obviously it's not because you're happy to watch it disappear before your eyes. Good luck Chris.

 

[chris1983]

Just because you're free carried doesn't make it all good IMO. Is it your money, or not? Obviously it's not because you're happy to watch it disappear before your eyes. Good luck Chris.

I watch my fund grow daily Kennas. AIMO/CFEO/PNA Have all fired in the past month. Sometimes some stocks you hold have downturns. ECH are nearly back up to where they started. The difference between you and I is I dont panic and stick to the fundies. I could easily sell and pay 4 grand in Tax. There is money dissapearing before my eyes.

 

[chris1983]

Huge news for Echelon. They completed the placement at 1.50. Get ready for a bounce in a big way now. This was big getting this placement completed. They now have 20+ million at bank.

 

[chris1983]

SHARE PLACEMENT SUBSCRIPTION AGREEMENTS RECEIVED

The Directors of Echelon Resources Limited (“Echelon” or “Company”) are pleased to advise that the Company has now received all of the subscription agreements in relation to the previously announced placement of 12 million shares at $1.50 each.

The placement will raise A$18 million before expenses. The shares will be issued to European and North American clients of Haywood Securities and London based institutions.

The placement is subject to shareholder approval at a general meeting to be held on 20 July

 

[ta2693]

PPL in NA and Eu are paying $1.5 for ECH, whereas Aussie can get it $1.25 on market. I seems to me very unfair to them.

Why they do not come and buy on ASX rather than accept the offer?

 

[chris1983]

PPL in NA and Eu are paying $1.5 for ECH, whereas Aussie can get it $1.25 on market. I seems to me very unfair to them.

Why they do not come and buy on ASX rather than accept the offer?

It is easier for them to buy at 1.50 from Haywood Securities. There aren't many shares on issue in ECH. If overseas investors purchased 12 million shares at market prices I think they would have to push the SP well above $2. Its all good news anyway. My bets is the airborne radiometrics will be released in the coming weeks and they will be very positive.