Wednesday, September 19, 2007

September 19th NEX

[Correction Note: Due to flawed data, the original version of this report overstated the BBCI figures by 0.01 point, and thus understated the day's decline. The figures, point change and percentage change have all been corrected. Apologies to anyone who was misled.]


In today's NEX trading, the Barrel's Bottom Composite index closed at 86.76, down 0.65 points or 0.744%, from the previous day's close of 87.41. The day got off to a slow-moving start: by 10 AM ET, the BBC Index had not changed at all from yesterday's close. A 7-cent decline in the price of Rocher Deboule Minerals Corp. [NEX: RD.H] pushed down the index in the next hour, even though that decline was partially damped by a 3 cent/share rise in Electrohome Limited class 'Y' non-voting [NEX: ELL.K] during that same time period. For most of the day, Electrohome's non-voting shares were actually worth more than the implied value of Electrohome's voting shares [NEX: ELL.H] as based on the last trade of the latter on August 30th. ELL.K fell in the last hour, though, and closed unchanged at 15 cents/share.

The NEX was relatively quiescent from late morning until early afternoon. Between 12 and 1 PM ET the index didn't change at all, except for a self-reversing rise near the middle of the hour that lasted for about twelve minutes. This holding pattern changed in mid-afternoon, though, at first with a rise that didn't hold up. At about 1:15 PM, there was a substantial drop in the BBCI that didn't reverse (except briefly) until the last hour of trading. Gains in Monster Uranium Corp [NEX: MU.H], Rose Marie Resources Ltd. [RSR.H], Lomiko Resources Inc. [NEX: LMR.H] and a partial reversal of the decline of Rocher Deboule [NEX: RD.H] more than overcame the few additional decliners in that last hour. MU.H closed at 40 cents/share, up 5 cents/share on the day; RSR.H closed at 13.5 cents/share, up 2.5 cents/share; LMR.H closed at 37.5 cents/share, up 5.5 cents/share; RD.H closed at 52 cents/share, down 2 cents on the day.

Here are the values for the Barrel's Bottom Composite for the NEX, hour by hour:
  • 10 AM: 87.40
  • 11 AM: 87.14
  • 12 PM: 87.12
  • 1 PM: 87.12
  • 2 PM: 86.82
  • 3 PM: 86.48
  • 4 PM/Close: 86.76


Twenty-five NEX stocks traded today. Of these, 8 advanced, 9 declined and 8 remained unchanged. There were 96 trades. The top trader in terms of raw volume was the same as yesterday's, although with lesser volume: Rose Marie Resources Ltd. [NEX: RSR.H], with 297,250 shares traded today. The unusual combination of a large volume and little price change might very well have been caused by a tranche of shares coming out of escrow as of yesterday, thus becoming part of total shares outstanding. Of the 23 trades that have been made since the start of yesterday's trading, all but four have had an anonymous institution as the sell-side broker - and those four were the most recent trades of today. In total, 688,000 shares have been sold through an anonymous institution in the last two days, all at the same price of 11 cents/share. Approximately 3 million shares of Rose Marie came out of escrow as of yesterday.

According to the other Barrel's Bottom report and the TSX Venture closing summary for today, Monster Uranium Corp. [NEX: MU.H], for the second day in a row, took the #1 spot in terms of value of shares traded; once again, Rose Marie was a close second. Monster Uranium placed fifth on the top-ten list of volume traded divided by total shares outstanding, found below. Rose Marie placed first, as it did yesterday.

There was no news release from any NEX company that was picked up by Marketwire today. Nor were there any NEX companies mentioned in today's TSX Venture Daily Bulletins.

There were, however, two NEX companies that sent out releases today through Canjex Publishing. Both of them, Canadian Quantum Energy Corporation [NEX: CQM.H] and Gtech International Resources Limited [NEX: GCH.H], have filed interim (unaudited) financial statements for the latest quarter; neither issue traded today. Canadian Quantum's, for the first quarter of this fiscal year [PDF file], showed a loss of less than one cent/share, or $11,351. The first quarter of last year saw a loss as well, of $11,219 or less than a cent/share. The gross profit on Canadian Quantum's oil and gas sales dropped from 18.86% in the first quarter of last year to 11.02%. As explained in the M D & A [another PDF file], a drop in the received price for a barrel of oil, combined with a slight rise in production expenses, caused the drop; a rise in received price for natural gas in the same time period mollified the drop somewhat. Ironically, it was the expense drop that resulted from Quantum moving to the NEX that kept its loss at almost the same level as compared with the same period last year.

Gtech International's interim financial statement [PDF file] for the last quarter shows it sitting on $458,743 in cash, down slightly from the same period last year. (By an interesting coincidence, net current assets is equal to shareholders' equity. This was not true of the same quarter in the last fiscal year.) Its only revenue came from interest on the cash; its loss per share dropped from 0.024 cents to 0.04 cents due to there being no stock compensation expense for the most recent quarter. The M D & A [PDF file] suggests that Gtech is waiting for "a suitable biotechnology project" to buy up, but is not actively looking for one right now: "Total costs incurred during the period under review in relation to identifying biotechnology opportunities for the Company, as stated in the Description of Business section of this Report, were $Nil."

One NEX stock traded more than ten times today, the above-mentioned Rose Marie Resources; RSR.H traded eleven times today. The first seven of those trades were all at 11 cents/share; had the eighth trade been board-lot size, it would have made a new 52-week low for RSR.H. (That trade was for 250 shares at 9.5 cents/share; the 52-week low is 10.5 cents/share, established last Friday.) Rose Marie turned around by the ninth trade, of 24,000 shares at 12.5 cents/share, made at about 3:22 PM ET. The final two trades, of 30,000 and 50,000 shares, were each made at a higher price than the last trade; both were bought through an anonymous financial institution. As noted above, Rose Marie closed up 2.5 cents/share since yesterday's close.

The top percentage gainer in today's trading was Specialty Foods Group Income Fund [NEX: HAM.UN.H], which closed at 2 cents/share for a gain of 0.5 cents/share or 33.33% on the day. One trade of 1000 shares of HAM.UN.H, made at about 1:01 PM ET, put it at today's top in this category.

The top percentage decliner for today was BHR Buffalo Head Resources Ltd. [NEX: BHR.H], which closed at 15 cents/share for a loss of 5.5 cents/share or 26.83%. One trade, also of 1,000 shares, put BHR.H in the top decliner slot. Its closing price for today is equal to its close price as of two days ago.

Finally, the above-mentioned list of yesterday's top ten traders, as measured by % of total outstanding shares or daily turnover:

  1. Rose Marie Resources Ltd. [NEX: RSR.H] - 4.35% of total shares outstanding;
  2. Magnate Ventures Inc. [NEX: MGV.H] - 3.47% of TSO;
  3. Lomiko Resources Inc. [NEX: LMR.H] - 1.84%;
  4. Gold Star Resources Corp. [NEX: GXX.H] - 1.50%;
  5. Monster Uranium Corp. [NEX: MU.H] - 0.642%;
  6. Electrohome Limited class 'Y' non-voting [NEX: ELL.K] - 0.273%;
  7. Challenger Development Corp. [NEX: CDQ.H] - 0.272%;
  8. Moneta Resources Inc. [NEX: MOT.H] - 0.213%;
  9. Rocher Deboule Minerals Corp. [NEX: RD.H] - 0.207%;
  10. Focus Ventures Ltd. [NEX: FCV.H] - 0.139%.


NOTE: I am not affiliated with the TSX, nor is this blog. The Barrel's Bottom Composite index is not endorsed by the TSX.

TSX Nex Home Page

No comments: