ERN - Erongo Energy

[JWBH01]

Thanks captjohn, just wanted to make ERN clearer to all ERN investors.

Cheers

I don't expect any big movement until the drill program commences.

Also they may do an analyst tour like BMN did, take the analysts on a tour of their tenements. BMN went up a lot after that.

Halba,

Any ideas on when the drill program will commence?

 

[Halba]

April 9 2007, after easter, so not that long to go. In the meantime they are doing marketing of the company.

 

[Go Nuke]

Hmm...well Im glad that with my questions.. and Halba's pro research..have reignited the talk about why we personaly think ERN is good for it price! LOL

Though i am a little concerned now .....that u guys will buy big parcels of shares..{Nuke eyes off Halba} before I can buy more..

About how long would it take for those initial drill reports to come out? Couple of months??
Maybe i have time to save more mulla before they jump up the next leg.
So far it hasn't followed BMN...and Im fine with that!

 

[Halba]

About how long would it take for those initial drill reports to come out? Couple of months??

They are using downhole logging and spectrometers. IMHO this should run as soon as drilling commences. They should take analysts on a tour there like Bannerman. Show them the at surface u green stuff mmmm =)

 

[Sean K]

Unlikely for this to drop below the well established support area between 55-60 cents in the medium term IMO, pending market shocks. Been going up for 8 months, but volatile. The minimal divergance of the MACD with the sp is not a great sign, but I suppose that's expected considering it has come off highs. Looks ok for the minute, IMO. Prospects look encouraging.

 

[chris1983]

I like the look of that chart.

I might top up soon. Only problem is what do I top up with. haha who wants to lend me money?? Below from the last uranium update in Namibia.

"An RC rig has been secured and is scheduled to commence an initial 10,000m drilling programme at the Erongo Granites Project in April 2007."

Maybe a top up around early June

 

[mmmmining]

I like the look of that chart.

I might top up soon. Only problem is what do I top up with. haha who wants to lend me money?? Below from the last uranium update in Namibia.

"An RC rig has been secured and is scheduled to commence an initial 10,000m drilling programme at the Erongo Granites Project in April 2007."

Maybe a top up around early June

Read your early post, you are holding ERN, not ERNO. Your problem can be easily solved. Sell ERN, and buy ERNO. You can increase your holding by 50% "without borrowing a cent".

 

[Halba]

Yep i bought 'ERNO' today, need to save some funds but it doesn't matter too much. I guess with a smaller float size u need to be saving funds!

 

[Sean K]

I like the look of that chart.

I'm not a big fan of the volatility, and I also see a very vague head and shoulders happening there with the neckline at 55 cents. If short term trading, just going by the chart, I'd think twice about holding under there. Longer term and these short term pictures have less relevance.

 

[chris1983]

Read your early post, you are holding ERN, not ERNO. Your problem can be easily solved. Sell ERN, and buy ERNO. You can increase your holding by 50% "without borrowing a cent".

Yeah...But then I have to come up with cash to convert and I dont have any free atm. Its all tied up. I still say about 2 months after drilling commences if we see no price movement its time to jump in. All they will be doing is confirming historical drilling like Bannerman has done and it should cause the SP to be re-rated.

 

[mmmmining]

Yeah...But then I have to come up with cash to convert and I dont have any free atm. Its all tied up. I still say about 2 months after drilling commences if we see no price movement its time to jump in. All they will be doing is confirming historical drilling like Bannerman has done and it should cause the SP to be re-rated.

I don't know which broker you are with. But Comsec guy once told me that I can buy and sell at the same day, only need to pay/credit the difference.

Even this is not the case, you still can sell first, and buy back ERNO next day. Or sell half ERN first day, Sell another half ERN second day, buy back half ERNO second day, and Buy back another half ERNO on the third day....

 

[Reefer]

Comsec balance up the trades for each day and three days later you settle up for the difference, plus or minus.
I'm with mmmmmmmmmm and Halba here. As the options do not need to be converted until April 2009 I feel they are the ideal entry to this stock - I'll be surprised if an upward movement in SP has not occurred by April 2009, and you will have more leverage with options. Of course that is downward leverage as well as upside. You need to ride the volatility and not panic.

On today's close
say 50,000 ERN @ 61c = $30,500
That would finance 75,000+ options or thereabouts.

Seems the way to go as long as you expect the uranium to be proved once drilling starts.

 

[Halba]

Correct. 2 yrs and no time premium is splendid business sense!

However Reefer and all note:

Any pro rata or free in speccie distribution of Erongo heavy materials project(may be worth a few c to the price) will only be given to shareholders and optionholders will have to convert.

 

[mmmmining]

Correct. 2 yrs and no time premium is splendid business sense!

Importantly, liquidity is very good. Half a million trading is very often.

 

[chris1983]

Correct. 2 yrs and no time premium is splendid business sense!

However Reefer and all note:

Any pro rata or free in speccie distribution of Erongo heavy materials project(may be worth a few c to the price) will only be given to shareholders and optionholders will have to convert.

Thats a good point Halba. There will most likely be a mineral sands spinoff. I hold quite a few shares allready anyway. I might top up to 50k ERN if the price and timing is right for me. ERNO look good though but for me I hold too many options in other companies I need to convert allready and I cant dig up money from no where. Im in for the long term so I would rather just buy the main share. Its just your personal preference really.

 

[nizar]

Thats a good point Halba. There will most likely be a mineral sands spinoff. I hold quite a few shares allready anyway. I might top up to 50k ERN if the price and timing is right for me. ERNO look good though but for me I hold too many options in other companies I need to convert allready and I cant dig up money from no where. Im in for the long term so I would rather just buy the main share. Its just your personal preference really.

Why do you worry about conversion so much?
Just sell on market like FPOs?

 

[mmmmining]

Correct. 2 yrs and no time premium is splendid business sense!

However Reefer and all note:

Any pro rata or free in speccie distribution of Erongo heavy materials project(may be worth a few c to the price) will only be given to shareholders and optionholders will have to convert.

We are not after peanuts.

1. If it happens, it might be 12 months later or so. They MUST focus on the uranium resources definition. Otherwise, the management team has no version, sider tracked by insignificant issue.

2. If spin off do happened, I guess 1 free shares at 20c for every three shares held. 7c each at top. It is not uranium spin off, it might worth much less. We have see it happened, even recently with HRR's spin off.

3. Your expectation on ERN is not 7c, or even 10c appreciation I guess because the huge risk. I expect at least double my money invested, or risk all. So the benefit to increase share holding by 50% without additional capital will return 30c+ per original share held at current price. I am well still ahead by trading ERNO than ERN.

4. I believe YT and Kannas are addicted to ASX traded options. They might have a say on this. A lot of them has no time-value at all. Even some of them traded at 10% discount particularly closing to expiration date. A couple of them are: BSMO, and GBEO. Take a look, you might make a few dollars by buying the option, exercise them, and sell it a few weeks late.

 

[GRTRADER]

Comsec balance up the trades for each day and three days later you settle up for the difference, plus or minus.

Not sure if you mean this but what they do is let you buy a share and then you have until the close of business the next day to sell and they just settle up the difference. This does not even have to be the same share. E.g. you can buy ern for $4000 and sell bhp for $4500 and provided its within that 2 day period they would just transfer $500 to you.

 

[chris1983]

Why do you worry about conversion so much?
Just sell on market like FPOs?

What if you want to keep them long term? What if you dont want to sell? I would rather buy the 50,000 head shares that I want and just leave them there. Then I know my money is all spread out how I like it. If I have all options I have to start worrying about selling some of my good stocks like BMN and AOE to free up some cash to convert and I don't ever want to do that. I don't trade much. I like to find a good company...and hold. If ERN then go up big time I'll sell 15 or 20 thousand shares and move onto the next one. Thats my trading plan. I buy..I'll sell enough to free carry a holding and I'll move onto the next one.

 

[chris1983]

Not saying oppies aren't good though...I hold NWRO and CFEO. There is a lot of time to exercise ERNO though. I guess the in specie distribution like what Halba mentioned is the bonus of having the head shares. I don't want to sell my head shares now to move into ERNO. Then I'll have to pay TAX because my ERN are in profit. Anyway you guys want the head shares to go up because that will make the oppies move Its a win..win. I own ERN. you guys own ERNO. All good. We will make money.