EKA - Eureka Energy

[nioka]

Thanks folks for your good thoughts and I wished that may be the case.

However as you could see our thoughts are not shared by market today lowering the price of EKA already at 12 cents :

I believe the market is irrational at times like these. In order to capitalise I put in both buy and sell orders. Buy if it fell and sell if it went up and made the relative price with the other partners a swap trade.

It went down so I bought a few. Volatility gives opportunity. The cap raising is a good proposition for current holders in my opinion.

 

[barney]

I believe the market is irrational at times like these. In order to capitalise I put in both buy and sell orders. Buy if it fell and sell if it went up and made the relative price with the other partners a swap trade.

It went down so I bought a few. Volatility gives opportunity. The cap raising is a good proposition for current holders in my opinion.

agree Nioka ..... Large holders can try and squeeze a few free dollars by selling above the issue price ...... and simply re-buying at 10 cents ...

New punters (if they had been paying attention ... could have bought in low, given themselves 1:6 rights, and got in on the play at a level which a couple of weeks back was not possible ..... The mathematics of the opportunity is a win win ...... assuming Sugarloaf is the real deal
Cheers.

 

[lemontree]

"Ex Date (date from which securities commence trading without the entitlement to participate in the Entitlements Issue)
15 March 2010
Record Date (date for determining entitlements of Eligible Shareholders to participate in the Rights Issue)
19 March 2010"

Taken from their announcement today. I'm slightly confused... does this mean we need to have EKA shares by the 15th in order to be offered the 10c 1:6 per share? Does this also mean we have to take into account T+3 so.. you'd need to have the EKA shares registered by the 15th?

And final question, how does an EKA holder go about accepting the 1:6 shares offer. Thanks!

 

[estseon]

If you go to the ASX website and type EKA in the quote box:

http://www.asx.com.au/asx/markets/priceLookup.do?by=asxCodes&asxCodes=eka

Look in the Status box - CE = Cum Entitlement

Monday you should see- XE = Ex Entitlement

Then the shares will be trading without the right to take up the 'rights'. You will be buying and selling without those rights.

If I buy any myself, it would be then or after - foreigners get royally stuffed so far as I can see.

As to the record date: that, I think, is when they produce a list of shareholders entitled. I don't think that it has anything to do with settlement. They can't expect to do it immediately the shares start trading ex-entitlement.

If you read their release, you will see that they will be sending out a prospectus of some kind. If your shares are dematerialised (held by your broker in a nominee account etc), your broker should send you an alert requesting instructions - that's the way it works in the UK.

I suggest that you contact your broker.

If you want to buy with the entitlement, tonight/today is possibly your last chance. But read the release for yourself.

 

[The Novice]

Is it possibe for someone with more idea than me to give an opnion on this stock. I've purchased a number of sharers in Eka on a friends advice and recently purchased more through the capital raising.
The price has dropped again today and i was hoping to get peoples thoughts on this.
Thanks in advance.

 

[nioka]

Is it possibe for someone with more idea than me to give an opnion on this stock. I've purchased a number of sharers in Eka on a friends advice and recently purchased more through the capital raising.
The price has dropped again today and i was hoping to get peoples thoughts on this.
Thanks in advance.

I see EKA as the little brother of ADI and AUT. I continuously trade between the three as their relative SP changes. The position as I see it is that ADI and AUT have a nett interest of 10% in the current Sugarloaf program and EKA have 6.25%. AUT has a higher % interest in other areas and ADI has an interest in Yemen that may have some value.

Allowing for the cash position and the market cap of each I make a decision as regards the value of all three. My current opinion is that EKA is underpriced and I have been accumulating more EKA in the last few days trading.

They have had a capital raising which gave existing shareholders the opportunity to buy at a discount. The issue was underwritten and undersubscribed which gives us some short term problems. The underwriter may want to sell the shares they must take up and there will be some that took up the issue to make a short term profit. Some sold to take up the offer before the closing date which caused an SP fall and now there are some selling to recoup their outlay and will sell for a small profit or even to break even.

I say short term because it will be over in a flurry and if the fraccing results are as good as predicted by most holders I would expect EKA to catch up with the other two on a relative value basis.

EKA has a history of lagging behind but it usually catches up. At one stage it was overpriced and sold on a par with ADI. Naturally I sold all my EKA and bought ADI at that stage. Recently I sold ADI and bought EKA and I'm waiting patiently to slowly switch back to ADI or AUT.

Which ever one is held they all have potential to increase dramatically........ IF.... the oil and gas is a great earner for the partners. Until that happens they are spec stocks but as each day passes the spec tag seems to be getting smaller.

DYOR. I'm often wrong and to prove it I'll admit to selling a lot of AUT and buying ADI when they were selling at roughly the same price.

 

[Kremmen]

I see EKA as the little brother of ADI and AUT. I continuously trade between the three as their relative SP changes. The position as I see it is that ADI and AUT have a nett interest of 10% in the current Sugarloaf program and EKA have 6.25%. AUT has a higher % interest in other areas and ADI has an interest in Yemen that may have some value.

Allowing for the cash position and the market cap of each I make a decision as regards the value of all three. My current opinion is that EKA is underpriced and I have been accumulating more EKA in the last few days trading.

I concur, but I don't bother to trade in/out. I just buy whichever one seems the best value at the time and hold, as they all have significant upside if all goes well.

The recently announced (today) capital raising by ADI, which doesn't give existing shareholders (except the big ones) the opportunity to participate, screws over ADI shareholders and dilutes their (our) holding, making EKA (and AUT) relatively even better value now.

 

[Kremmen]

Funny to see that nobody even bothered to pick EKA in the June Stock Tipping Competition! If someone had, they'd have been in 2nd place at the end of day 1.

EKA continues to be the little partner to AUT and ADI that seems to remain forgotten.

 

[Kremmen]

According to today's announcement, AWE, about to conclude the take over ADI, has 4.9% of EKA. They've said they have no intention of buying more, but why would we believe that?

 

[Agentm]

According to today's announcement, AWE, about to conclude the take over ADI, has 4.9% of EKA. They've said they have no intention of buying more, but why would we believe that?

eka has no cash to keep going.. so in a real sad place

its got to either merge with AUT or look at selling to the highest bidder on market

aut will have to offer a fair conversion ratio for the merge imho, and i am told a major holder is not keen on any merge atm

further dilutions for eka will be a less favourable path imho

time for awe to spend more cash and go all in.. or the management of eka must be thinking what value there is in a merge

time for the show to start imho...

 

[Kremmen]

eka has no cash to keep going.. so in a real sad place

its got to either merge with AUT or look at selling to the highest bidder on market

Why do you think so? Sure, it hasn't got the huge cash pile that AUT is currently raising, but it doesn't have the same costs either. EKA should have enough to last a while, and a while should be all it needs if we keep getting good news.

 

[Agentm]

Why do you think so? Sure, it hasn't got the huge cash pile that AUT is currently raising, but it doesn't have the same costs either. EKA should have enough to last a while, and a while should be all it needs if we keep getting good news.

just fill me in a little here on how much capital eka has and how much you think it needs going forward

perhaps one of us is dreaming?

 

[bazollie]

Maybe Captain Kremmen has been distracted by his first mate Carla!!
A bit sads really for me as I am showing my age here!

Regards
Bazollie

 

[Kremmen]

just fill me in a little here on how much capital eka has and how much you think it needs going forward

They have the $2.2M from the recent CR, plus however much cash they had left before that. How much they need going forward depends on how quickly the JV wants to drill after the farm-in wells are done. ... Your guesses on that are probably better than mine.

 

[philly]

EKA is in a trading halt this morning pending an announcement regarding a capital raising. Not surprising given the rush of activity since Hilcorp have become involved in the sugarloaf

 

[AngusSmart]

just fill me in a little here on how much capital eka has and how much you think it needs going forward

perhaps one of us is dreaming?

10mil + @ 18-19c dilution of < 50mil shares.. thats my guess anyway!

this story seems a little familiar something something ADI.. next its the take over bid by someone..

 

[Kremmen]

Given that they appear to want periodic injections of cash, it would be really great if they'd do a 1:X issue with a free option attached exercisable at, say, 17c? The options would be a nice reward to shareholders who subscribe, as well as giving a future capital source without requiring another cap raising.

 

[Agentm]

10mil + @ 18-19c dilution of < 50mil shares.. thats my guess anyway!

this story seems a little familiar something something ADI.. next its the take over bid by someone..

now your getting the picture kemmen

everyone is standing around in AWE of whats happening

lol

lets see if eka will put cheap shares in the hands of a select few or will it give an opportunity for the masses to participate..

 

[nioka]

lets see if eka will put cheap shares in the hands of a select few or will it give an opportunity for the masses to participate..

I'm waiting to see an offer from AWE or AUT come up now. Accellerated by the trading halt and the possibility that EKA is still looking at their options.

I'm still a bull. I still believe that the AUT and EKA SP was held back by the AWE offer. They aligned themselves to the offer rather than adjust to the good news following the Hillcorp work. I believe that the ADI SP would have easily reached 60c by now had it reacted to the news rather than be governed by the AWE offer price. We were robbed.....

We will be robbed again with EKA if the new capital finds itself in the hands of AWE at an early stage.

 

[nioka]

Capital raising, shareholders get offered 1 for 6 at 17c. A good result and I'm happy with that. The additional capital should be productive and not too dilutive.