Ramblings for February. — ASXnewbie.com
Weekly Ramblings of an Australian Stock Trader - incorporating ASXweekendtrader.com
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Ramblings for February.

The markets have been fairly volatile as usual, with Companies being savaged for what is seen as under performing just because the profit is not what is expected. Irregardless of floods or economic downturns.

It never ceases to amaze me with the attitude of some of the traders around who sell off stocks because of a minor profit downgrade. “I’ll show you, take that!” so they sell their stocks and the share price drops down. Then they are upset because the share price goes downwards.

When good stocks go backwards for whatever reason, it is always a good time to top up your portfolio with quality stocks at a cheaper price. Buy in gloom and sell in boom.

The flavours of the Month is still Coal Seam Gas (CSG) and Gold and its silent partner Silver plus Rare Earths.

 Firstly rare earths:-

I have had a good Month with Lynas (Asx Code LYC )which closed at $1.59 just prior to the news of Malaysia Approving their Temporary Operating Licence. Share price yesterday at closing was $1.39. A tip for you here is “Buy on the rumour and sell on the news.”  There is still room for improvement in the share price in the near future I re bought at lower price and have left them to gather dust for awhile.

Coal Seam Gas :-

Lots of activity going on what with Gas hungry British Gas swallowing up Bow Energy  and Arrow Energy.

Drillsearch (Asx Code DLS) is currently enjoying a nice upwards trend tickled along by QGC exercises options taking 9.4% stake in Drillsearch on 2nd February. Share price closed at around $1.20 . ( QGC was taken over by British Gas a while ago.)

Drillsearch are 50% partners with Beach Petroleum (Asx Code BPT) busy currently developing their oil and gas fields.

Another Coal Seam Gas miner is Senex (SXY) who used to be called Victoria Petroleum. Who are also very busy with developing oil in the Cooper Basin and Coal Seam Gas in the Surat Basin.

Both DLS and SXY  are prime takeover targets in the Coal Seam Gas race to supply the gas trains at Gladstone up here in Queensland.

Gold and Silver :-

My favourite here is Focus Minerals (Asx Code FML) they have recently taken over Crescent Gold and have three gold mines now producing. Their share price at closing yesterday was a nice price of 0.054 cents per share. A great one to buy and put into the bottom draw. As to why the share price is not higher beats me as they are now in the top five gold producers in Australia.

The markets in general are fairly volatile at present so use your stop losses to minimise losses plus do your research.

Please remember these are just my ramblings and not to be misconstrued as investment advice in any way and remember always do your own diligent research.


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