Speculator’s Corner

/Speculator's Corner
Hosp 2

Medibio achieves success in high growth mental health market

Shares in Medibio surged more than 30% on Monday, increasing from the previous day’s close of 25 cents to 33 cents. This followed the company’s announcement that it had successfully completed the first commercial pilot study of group’s workplace stress product after the study independently validated its commercial and technical aspects.

When there are strong share price reratings particularly in microcap stocks there is inevitably a degree of profit-taking at some point and in Medibio’s case, given the extent of the share price increase that could occur sooner rather than later.

Mining 1

Red River Australia’s best near-term producing zinc play

Emerging zinc player, Red River Resources (RVR), announced last week that it had increased the Far West mineral resource by 42% to 1.6 million tonnes, up from 1.2 million tonnes.

This was a significant development given that it also included a 5% increase in grade from 14.2% zinc equivalent to 14.9% zinc equivalent, a comparatively high grade mineral resource when weighing up the company’s prospects against its peers.

Another factor RVR has going for it is that it is relatively close to production with managing director,

Gold 1

Intermin shares in for another rerating

The highflying share price of Western Australian gold exploration group Intermin is likely to receive further support on Wednesday after the group announced a continuation of high-grade hits at its Teal gold project, only 12 kilometres from the centre of Kalgoorlie-Boulder.

Management highlighted that the project area remains seriously underexplored along a 2 kilometre strike length. Chief executive, Jon Price, noted that mineralisation sits below up to 30 metres of depleted cover where a lot of the drilling has been undertaken to date but he said,

Oper 1

Orthocell receives clinical study approval

Shares in Orthocell could receive a boost on Wednesday after the company was granted ethical approval by St Vincent Hospital, Melbourne for a clinical study using its proprietary Celgro SMRT collagen scaffold technology for the treatment and augmentation of articular cartilage surgeries of the hip.

The clinical study will aim to demonstrate that Celgro can be used as an augment to hip cartilage surgery and is a safe and tolerable treatment.

In basic terms, this involves the placement over the cartilage defect to stabilise the fragile bone narrow cell infiltrate,

better-trades

Intecq up 7%, but more to come says Blue Ocean

Analysts at Blue Ocean Equities have responded positively to today’s news that Intecq negotiated a contract to supply gaming systems at Federal Group’s Wrest Point Casino in Hobart and Country Club Tasmania in Launceston.

Intecq has commercial agreements with more than 800 customers operating more than 75,000 electronic gaming machines predominantly in Australia, but with a small presence in the broader Asia-Pacific region

Intecq’s wholly-owned subsidiary ebet was selected to supply its business intelligence, gaming management and player loyalty systems.

shutterstock_107428883-2400

rent.com.au users and agents up – announces capital raising

While shares in rent.com.au have been battered since the start of December, falling from the 57.5 cents to trade as low as 16 cents last week, shareholders may take some heart from the group’s March update released on Monday morning which featured solid growth in new agent registrations and above run rate unique website visits.

Given subsequent to the release of the data, management announced it would be conducting a capital raising it must expect first-quarter numbers will resonate with investors.

Broker sees 400% share price upside in well advanced Avita

Shares in Avita Medical increased sharply on Friday from the previous day’s close of 10.5 cents to 11.5 cents. However, this needs to be put in perspective as there was a strong surge throughout early March which resulted in it hitting a 12 month high of 12.5 cents on March 14, only to pullback shortly thereafter.

Given the substantial and significant news flow that occurred throughout the month of March, including five developments that occurred in the first half of the month concerning various areas of its products and technologies in trial,

Mining 2

Magnis BFS indicates robust economics

Magnis Resources has released its bankable feasibility study in relation to the Nachu graphite project located in Tanzania.

A key feature of the study was an implied post-tax NPV10% of US$1.69 billion and an internal rate of return of 98%.

Capital payback is projected within 14 months of first production. Reserves support an initial 15 years of operation.

A differentiating factor in relation to the Nachu project is the high-quality size, purity and crystal structure of the contained graphite flake.

Gold 2

High grade 2.8 million ounce resource announced by OreCorp

Shares in OreCorp could rally on Thursday morning after management announced a maiden JORC 2012 compliant mineral resource estimate on its Nyanzaga project in Tanzania.

The impressive 21.3 million tonnes grading 4.1 grams per tonne for 2.78 million ounces gold represents a robust resource for a relatively new company by mining terms (listed on ASX in 2011) with a market capitalisation of $18 million.

This follows on from a joint-venture deal which was negotiated in September that demonstrated a non-JORC resource of 4.2 million ounces at 1.3 grams per tonne,

Oper 2

Viralytics’ near-term profitability holds attraction

Analysts at Bell Potter have revised their view on Viralytics in a note released on Thursday morning. The company is a developer of oncolytic immunotherapy treatments for a range of cancers.

Bell Potter now sees the structure and timing of payments from partnering transactions as varying in such a way that earnings contributions are likely to be recognised at a later date than originally anticipated.

This has prompted the broker to amend its fiscal 2016 forecasts from a loss of $5.4 million to a loss of $9.1 million,