WCL

WCL is under attack from a Chinese company wanting to usurp its ownership.  But strangely, the market does not believe that it would be successful so the share price remained well belong the offer price!

Nobody wanted WCL so I topped up at 28.5c just a week or so ago.  Of course, it has dropped below that but this AM, it is 30c.  I don't have a lot of spare cash that my wife allows me to dabble with unfortunately.

Today, it announced that STO needed more gas for its GLNG gas plant for the next 20 years!  Nothing is productive yet at WCL and it is said that its gas is very hard to extract.  But why would STO sign for 20 years if it doesn't already know something positive.  The Chinese mob is going to be stirred up now.

Mongolian stocks

Politicians in the Third World are mostly greedy people.  The difference with other greedy people is they have political power.  And to get the power, they have to utter trash to appeal to gullible voters.  Trash that sounds patriotic, genuinely concerned and altruistic.  Yet, it is well-known that such scheme often fails because you need a lot of capital to build productive mines after very expensive exploration.  And if you tax the companies heavily to deprive them of a profit, the politicians have forgotten that the business world is competitive.

Why it takes Mongolia such a long time to grasp the facts of world business is puzzling.  The president is Harvard-trained.  Currently its Foreign Minister is coming to Sydney to explain how the government is now making it favourable  for foreign investors.  Unfortunately, how tenable are these contracts when the government changes?

It seems to have learned a lesson so perhaps it is time for me to re-invest in my fallen Mongolian stocks...  And in today's The Australian, a couple of my stocks were mentioned.

AVB

Ooops!  Gone into a trading halt to announce a drilling update.  Has to be good.  However, based on past experience, if it is good, it goes up and then it comes back below what it was!

I have just topped up after it came back so I might be in luck, but temporary luck.

PCL

Hydrocarbon deposits exist off Kenyan coastline but if it is gas, it is not so valuable.  It is oil that people want.  And it has to be oil that is recoverable.

PCL has seen its share fall over the year because Apache found nothing extractable.  So in a new tenement, this AM there was an announcement that hydrocarbon has been discovered but no other details are available yet.  Finding hydrocarbon does not mean much.  You need to know how much there is there, whether it is oil or gas, whether they are toxic stuff, and whether they are extractable.  However, you can expect the share price to lift a little today.  But only a little.

AVB ALK and NST

Copper is in trouble because the Chinese economy is not going gangbuster.  The Chinese government is also cutting down on credit.  And copper has been used for hedging in China too but the citizens.  So when things are down, people often dump whatever that they thought was going to be more valuable... quickly.

However, that is a short term problem.  AVB found more copper and the share price went down.  Then it moved up a bit and I missed out on topping up because I put in an even lower bid.  However, I left the bid standing and when the share price came down lower, I get a small parcel.

I like buying when people are dumping WITH good announcements.

I have also picked up a small parcel in ALK which has started to produce gold from NSW.  This was done efficiently on budget and on schedule, which is rare these days.  Meanwhile, the POG has gone up a bit since the start of the year, too.

The outstanding performer for me was NST.  It picked up discarded producing mines from the big boys, when the POG was very low!  The management is fantastic!  The last SPP was only a month ago at 88c and now it is trading at over $1.20.  Of course, you would expect the SPP to be scaled down because many of its shareholders knew it was going to be profitable.  I got 2/3 of what I requested for.

TON

Recently it announced its resource at one site.  The market didn't like it for a very strange reason.  That announcement only covered ONE site; made very clearly, too.  And it is not the main site.  In addition, the discovery of graphite in that tenement is being extended by further drilling.  So why has the share price fallen is always fascinating.  You really wonder who these sellers are.  Lemmings?  Manipulators?  Idiots?  People in the know (of further negatives)?

Almost certainly, this stock will be taken over.  Most likely by a smart Chinese company...  However, the Japanese and Koreans are also scouring around, even Singaporeans who live in the world's most expensive city.

POG

Still the best yoyo show in town.  Russians, or rather, Putin shows off his machismo, and the POG goes up.  This will continue to move upwards while more Russians gather at Ukraine's border.

Meanwhile, markets are dropping everywhere.  But realistically, no one wants to go to war over Ukraine.  Western Europe does not want to upset Russian as it still needs Russian gas.  Ukraine is just a big suburb in USSR so it will probably end up being usurped again.  And when that happens, it will be for Russia to bear the consequences...  The rest of the world can still trade as normal.

Hence, if share price of good stocks continue to plummet, it is time for me to restock my blue chips as I am no longer young.