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springhill

springhill

Make the drill work for YOU
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For those looking for a spec play here is one worth looking at, I think.
Laconia have an interesting exploration schedule this quarter, including drilling for gold at Kookynie, in the eastern goldfields. Area targetted has high grade historic results, at a small depth range, though near surface.
The Mooletar Project has an Exploration Target of 216-264Mt @ 30-35% Fe.
Most intersetingly of all is the 701 mile Project, looking for gold and base metals. The real interest here is in the REE potential of this area. Anything that turns up significant REE rockets, so may be worth a punt.

LCR has the capital structure i look for in a company, but i have another fish to fry ATM, so thought to highlight it for others that may be interested. Is very near its 12 mth low and look to be careful with the cash they have in bank.

Current SP 8.5c
MC $5m
Shares on Issue 70m
12mth High/Low 7.6/17c
Cash at Hand $3.1m
Expenses this Quarter $300k
 
Not much has happened since my last post on LCR, but if you are interested in researching a company with numerous interesting drill programs coming up this quarter, this is worth a look IMO.

Planned drilling includes;
Project Target Activity Start/Finish

Kookynie Gold Drilling March/April
Barramine Base Metals Drilling June/Sept
Lennons Zinc Geo/Drill April/Oct
Yandicoogina Zn/Au Sampling April
701 Mile REE Augur April/May

I will be particularly keeping an eye on 701 Mile, anything that strikes REE = payday.

Not holding, but heavily considering.
 
Share has been in a solid down trend since listing.
Dropped from 25c to 8c after touching 7c.
(Have a look at the 150 day ma.) lcr_ax16oct09_to_06apr11.png
Very little trading.

If they strike paydirt, or look like it, the chart will show it well before you hear about it.
May as well put your money on a "good thing" at Flemington or Randwick.
But in the end who knows ?

(Actually only responded to the thread to practice uploading a file.)
 
Noddy said:
Share has been in a solid down trend since listing.
Dropped from 25c to 8c after touching 7c.
Click to expand...

Approaching ever closer to cash value/ or a bottom.

Noddy said:
Very little trading.
Click to expand...

One of the things i look for.... low liquidity

Noddy said:
If they strike paydirt, or look like it, the chart will show it well before you hear about it.
May as well put your money on a "good thing" at Flemington or Randwick.
But in the end who knows ?

(Actually only responded to the thread to practice uploading a file.)
Click to expand...

Which is why i enter stocks pre-drilling of prospectively good tenaments. Attempting to pre-empt the move.
 
Springhill, a quick question from a beginner; why do you look for stocks with a low liquidity? Isn't that sort of a bad thing?
 
isplicer said:
Springhill, a quick question from a beginner; why do you look for stocks with a low liquidity? Isn't that sort of a bad thing?
Click to expand...

Depends on how much money you are trading with.
Common rule of thumb that a lot of traders use is ten times the amount you are trading with on a daily basis.
i.e. If investment is $5000, would like to see a daily share turnover on the market of $50,000. But some traders are happy with 5 times, some want 20.
It's an individual thing.
But it's easy to become trapped in an illiquid share that doesn't trade on a daily basis.
Can be costly.
 
springhill said:
Approaching ever closer to cash value/ or a bottom.



One of the things i look for.... low liquidity



Which is why i enter stocks pre-drilling of prospectively good tenaments. Attempting to pre-empt the move.
Click to expand...

Well good luck with it.
A 100 to 1 shot won a big race at Rosehill on Saturday, so you never know.
 
Noddy said:
Depends on how much money you are trading with.
Common rule of thumb that a lot of traders use is ten times the amount you are trading with on a daily basis.
i.e. If investment is $5000, would like to see a daily share turnover on the market of $50,000. But some traders are happy with 5 times, some want 20.
It's an individual thing.
But it's easy to become trapped in an illiquid share that doesn't trade on a daily basis.
Can be costly.
Click to expand...

I won't argue with any of that, that is an extremely valid perametre. My point is if you enter an illiquid stock at the right time or having done your research, becoming trapped is alot less likely.

isplicer said:
Springhill, a quick question from a beginner; why do you look for stocks with a low liquidity? Isn't that sort of a bad thing?
Click to expand...

Not in my opinion isplicer. Low liquidity isn't the only factor, but it is an important one to me. All SP movements upward are created by demand, if you pick your stock correctly and the timing, there is a point where demand is heavy and supply is short. The shorter the supply, the more likely the buyers will have to pay a higher price due to this fact.
It may also point to the fact the directors are careful with their money and don't issue shares like lollies.

Take a look at HDG, perfect example of this.

This thread is worth a read.
https://www.aussiestockforums.com/forums/showthread.php?t=20144&highlight=liquidity
 
springhill said:
It may also point to the fact the directors are careful with their money and don't issue shares like lollies.



Not sure about that. It's not the directors money. Its the stockholders.
Most directors are issued shares free of charge, or at a nominal fee which becomes payable when they sell them, as part of their deal.
They don't issue them like lollies, more like confetti.
Click to expand...
 
Noddy said:
springhill said:
It may also point to the fact the directors are careful with their money and don't issue shares like lollies.



Not sure about that. It's not the directors money. Its the stockholders.
Most directors are issued shares free of charge, or at a nominal fee which becomes payable when they sell them, as part of their deal.
They don't issue them like lollies, more like confetti.
Click to expand...

And if the shareholders aren't happy with director spending, they are free to sell en masse.

I'm more than happy to continue this topic elsewhere, but we are getting away from focus on the LCR thread, this is more of a generalised discussion. No offense :)
Click to expand...
 
Great to see some discussion and activity on the LCR thread ..... well done all for contributing.

Like Springhill, I like LCR and think it has a lot of upside potential and these are my reasons:
* Diversified set of projects and commodities
* $3.1M cash on hand for acquisitions and exploration
* Low market cap of $4.7M @ current sp of 8c
* All their prospective projects and recent acquisitions valued at only $1.6M
* Large exploration program scheduled for 2011 covering many of their projects

I get the feeling that over the past year or so the main aim has been for Laconia to acquire a good project portfolio and set themselves up. There has been some drilling at projects like Mooletar but I think this year with lots of planned work on many of their projects this will be a big year for them.

I look for undervalued small cap companies that haven't been discovered yet. Fundamentals for LCR I think are very promising. I appreciate that fundamentals aren't everything but you can't ignore them.

Keep the discussion going on LCR ...... thanks to all!!
 
On December 18th, 2017, Laconia Resources Limited (LCR) changed its name and ASX code to Metalsearch Limited (MSE).
 
Metalsearch down 34.62% today to 1.7c after announcing disappointing gold drilling results from the company's Kraaipan Gold-Nickel-Copper-PGM Project in southern Botswana. Management called the results "encouraging" but the intercepts were narrow and the grades low. Needless to say, the market didn't like them and the stock was dumped convincingly.

Not looking good.

screenshot-shareinvesting.anz.com-2018-02-20-19-32-17.png
 
Metalsearch started to stir a couple of weeks ago and its share price has since doubled from 1.3c to 2.6c.

There has been no news of note for some time and on 25 July the company responded to an ASX Price and Volume Query with the standard "we know nothing" reply.

MSE recently completed a placement of 22,000,000 shares at 1c to raise $220,000.

Hmmm....

big.chart-MSE.gif
 
This is an odd one and something that I usually wouldn't consider but the recent volume and price increase coupled with the capital raising which was:

"capital raisings will contribute towards the continued evaluation of the Company’s Kraaipan Project in Botswana and further identifying and acquiring new projects" Quoted from: https://www.asx.com.au/asxpdf/20180607/pdf/43vlzycqf27p3h.pdf

It's quite possible they have found another project to purchase and those in the know might be buying up the shares.

Morningstar currently value MSE at 2.9c and today it is so far up .003 to 2.6c
 
Today's volume and price action signalling something...
Just wanted to dust off the thread.
Here's a chart, some solid trending after Corona crash, albeit jittery.
Not held.

Screenshot_20201001-221526.png
 
And pop she goes on no apparent news. I need a better system to catch these as there starting... rather than belated discovery.

Screenshot_20201118-221849.png
 
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