SRL - Straits Resources

[jonojpsg]

Looks like it is making a run at the Great Wall today! Wait and see whether it can keep it's head above that level by EOD, but looking promising

 

[Sean K]

Looks like it is making a run at the Great Wall today! Wait and see whether it can keep it's head above that level by EOD, but looking promising

Needs a weekly close above 1.50 I reckon for confirmation. Has spiked up through a couple of times and then dropped back. Fingers crossed.

I'm shaking my head over why I didn't put grandmas kidneys on back under $1.00...

 

[Sean K]

Needs a weekly close above 1.50 I reckon for confirmation. Has spiked up through a couple of times and then dropped back. Fingers crossed.

We've seen that and it's opened up well above $1.60. Anyone else consider this significant? I'd actually like to see some consolidation soon above the $1.50 mark. Need to clear out some short term traders and develop a new bunch of holders with higher targets. It's been an awesome run since the 80s..

Cash backing still well above this of course.

 

[MACCA350]

I baught a bunch in October, currently 9% ahead..........nice to see them gaining ground
In hindsight I should've averaged down when they hit the lows in Nov, but they will be a good earner as they continue to recover.

cheers

 

[CapnBirdseye]

Bought in to this one a few weeks ago and it is doing well. I am getting a little twitchy now and have tightened my stops. I am planning to keep hold.

Its broken a fairly significant resistance at about 1.55. Will probably go sideways a while with some profit-taking before hopefully continuing on the up.

 

[Sean K]

Its broken a fairly significant resistance at about 1.55. Will probably go sideways a while with some profit-taking before hopefully continuing on the up.

Was a nice break up and if the market hadn't have dived so sharply probably should have continued on. Looks like stops been triggered yesterday as opposed to panic selling, or even profit taking. Plenty of buying support indicated by the recovery. With markets looking to correct significantly perhaps, I doubt it can maintain above $1.50, will probably correct with the general market - if it does... Found a bit of resistance at the $1.60 mark there...

 

[Sean K]

Held ok above $1.50.

In trading halt today which wil be the announcement of settlement with PTT for the Straits Asia stake.

Well, hopefully it's still going through....

From the PTT agreement presentation:


Consistent with its strategy, SRL is to form a strategic alliance with the PTT Group of companies (PTT) to establish a global coal vehicle

• PTT is acquiring a 60% stake in SRL’s wholly owned subsidiary, Straits Bulk & Industrial (SBI) which holds:
• 47.1% interest in SGX listed Straits Asia Resources (SAR)
• Sakoa coal exploration interests in Madagascar
• Brunei coal exploration interests
• Yannarie solar salt project1
• A coal team headed by Martin Purvis, that has been responsible for SRL’s success and growth in coal, will transfer to SBI
• Co-investment Shareholders Agreement will align and govern the interests of the joint venture vehicle
• Total consideration of US$335m (US$220m upfront / US$115m performance payment)
• Settlement scheduled for April 2009

 

[craigj]

how long is the trading halt for

when is the announcement

i bought in recently and now looking to get out

 

[Kremmen]

how long is the trading halt for

when is the announcement

The halt is until the earlier of Thursday's start of trade or the announcement being made. (You could just look it up on asx.com.au)

 

[Sean K]

This is no different to the original plan, right?




DJ PTT International To Proceed With Straits Asia Resources Buy
29/04/2009 09:15AM AEST

SINGAPORE (Dow Jones)--Thailand's PTT International Co. said Wednesday it will proceed with its offer to buy Straits Asia Resources Ltd. (AJ1.SG) as it has completed the acquisition of a 60% stake in Straits Bulk & Industrial Ltd.

In March, PTT International had offered to buy Straits Asia for S$0.807 a share after it completes a deal to buy Straits Bulk & Industrial for up to US$335 million from Australia based Straits Resources Ltd. (SRL.AU).

PTT International's offer to buy Straits Asia becomes mandatory as the Thai company would have had effective control of the Singapore-listed company, in which Straits Bulk & Industrial owns a 47.1% stake.

"The offeror (PTT International) does not intend to revise the offer price," Straits Asia said in a filing to the Singapore Exchange Wednesday.

PTT international's offer values Straits Asia at S$881.8 million (US$581.6 million).

Straits Asia, which sought a suspension of trading in shares Tuesday, operates two mines in Indonesia and has a 80% interest in a coking coal exploration concession there. It also owns a marine engineering, construction and barging business.

PTT International is a wholly-owned unit of PTT Public Co., majority-owned by the Thai Ministry of Finance.

 

[Sean K]

Same plan.

Lets hope the last point here rings true.


The strategic co-investment alliance between SRL and PTT will deliver the following benefits:

Achieves SRL s vision to establish a global coal vehicle with the financial capability to actively pursue opportunities in the thermal coal sector;

Introduces a motivated and financially capable major shareholder to support Straits Asia Resources Limited s (SGX: SAR) future growth and development;

Realises significant value for a portion of SRL s coal assets whilst providing SRL with continuing economic interest and management influence;

Reweights SRL s portfolio across bulk commodities, precious metals, base metals and other investments, diversifying SRL s exposure to commodity price, country and approval risks;

Strengthens SRL s financial position to pursue strategic acquisitions in the resources sector at a low point in the cycle;

Provides the opportunity for a return of capital to SRL shareholders; and

Facilitates a potential re-rating of the SRL share price as a result of unlocking the value disconnect between SRL s market capitalisation and the implied value of the 47.1% stake in SAR.

 

[nomore4s]

All looking good atm for SRL. Will be interesting how the market reacts today and in the next few weeks.

Kennas I also noticed they are going to -

As previously foreshadowed, SRL expects to return approximately
one fifth of the total consideration received by SRL from the Transaction to Shareholders.

As a very quick estimate that would be about $60mil or about 25c per share - is this correct? I'm not very good with FA - I have been buying based on the chart action.

 

[Sean K]

As a very quick estimate that would be about $60mil or about 25c per share - is this correct? I'm not very good with FA - I have been buying based on the chart action.

$60 ish mil yes. They have about 230m on issue I think, so around 25c, yes. Golly, can that be right?

 

[nomore4s]

$60 ish mil yes. They have about 230m on issue I think, so around 25c, yes. Golly, can that be right?

lol, that's exactly what I was thinking when I was working it out, not a bad little bonus.

From a T/A point of view SRL needs to break and hold above $1.60.

 

[Sean K]

lol, that's exactly what I was thinking when I was working it out, not a bad little bonus.

From a T/A point of view SRL needs to break and hold above $1.60.

Staying around 1.60 would be good, but I think 1.50 is new support. But what's a few cents. If this area firms as a new base, next long term resistance is at 3.00. Not a target, but there's no real technical barriers to get there imo.

 

[Sean K]

From a T/A point of view SRL needs to break and hold above $1.60.

Staying around 1.60 would be good, but I think 1.50 is new support. But what's a few cents. If this area firms as a new base, next long term resistance is at 3.00. Not a target, but there's no real technical barriers to get there imo.

Just starting to crack $1.60 but intraday.

However, $1.50 looks like it's confirmed support now. Look at the action in the green circle.

I have to keep saying this however, the market needs to have a decent break. It's run up too much imo and the further it goes, the harder the next leg down may be. That will take everything with it.

 

[J.B.Nimble]

Just starting to crack $1.60 but intraday.

However, $1.50 looks like it's confirmed support now. Look at the action in the green circle.

I have to keep saying this however, the market needs to have a decent break. It's run up too much imo and the further it goes, the harder the next leg down may be. That will take everything with it.

There may be another down leg but I suspect it will be with a lot less panic in the resources sector next time. The mortally wounded have been well and truly identified now. Most of the weak hands are gone and now down legs are just trading oppportunities imo. With SRL sitting on such a big discount to cash there is a huge comfort factor here even if the trading opportunity is missed. And lets face it this one is for investors rather than a traders play - a classic hare and the tortoise story.

 

[nomore4s]

And lets face it this one is for investors rather than a traders play - a classic hare and the tortoise story.

I'm not sure about that, this has provided some very good swing tradiing set ups imo. Also from 90c-$1.60 in about 3-4months is hardly a tortoise.

The way SRL has built a base and is "stepping" up is very bullish imo.

 

[Sean K]

I'm not sure about that, this has provided some very good swing tradiing set ups imo. Also from 90c-$1.60 in about 3-4months is hardly a tortoise.

The way SRL has built a base and is "stepping" up is very bullish imo.

Has been a hare for the past 2 months but was definately turtle material from Oct to March. I entered this at 90 and 80 ish cents during that time and just sat on it trusting the funnymentals, then added on the breaks up on TA. Great time to have been in the market the past 4 months. I'm still cautious however. Long term, the printing of money to save crap businesses will come back to bite. Hard.

 

[Kremmen]

It's headed off past $1.70. Highest $1.75 so far today, on decent volume. Rising 6-8c/day looks really good.