Club Mulgoa

Friday, April 01, 2011

Capital raisings

So many stocks needing cash but which one to buy?

JRV is near its market price and for a strange reason, the market is totally uninterested in its scandium deposit ("world-class").

FNT is optimistic about its prospect and if you don't buy into the SPP, then you have problem with dilution.

LYC is racing ahead with its REE business. And the share price is still climbing.

RFE? Never heard of it? Well, if you are looking for shale gas in the USA at the moment, there is hope.

SBL has entitlements so it is more affordable and it too has great prospect.

There are more but I can't recall at the moment. I sold a huge chunk of AGO recently so I have some cash but not enough to fund all the SPPs and entitlements to the max. There is the impending BHP buyback, too which will generate some cash. Compared to good small caps, BHP is a laggard mainly because of its size. If it makes too much money, the government wants to stick its nose into the company's coffer. And the company can smell Bob Brown's fart too. The small caps are less obvious.

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