Thursday, September 27, 2007

September 27th NEX

In today's NEX trading, the Barrel's Bottom Composite index closed at 84.54, down 1.18 points or 1.38% from the previous day's close of 85.72. The decline started right at the opening of trading, with a 3.5 cent/share drop in Isee3d Inc. [NEX: ICT.H] and a 1 cent/share drop in Champlain Resources Inc. [NEX: CPL.H] being only partially counterbalanced by a 1 cent/share rise in Xgen Ventures Inc. [NEX: XGN.H]. After dropping about 0.07 points right at the opening, the BBC Index stayed even until 10:02 AM ET. A 2 cent/share opening drop in ITI World Investment Group Inc. class 'A'. [NEX: IWI.H] was counteracted by a 2.5 cent/share opening rise in Gainey Resources Ltd. [NEX: GRD.H], helping keep the BBCI roughly steady until about 10:50 AM ET.

At that minute, the decline resumed, as reinforced by drops in four issues as of their first trades of the day. (For one of them, it was the first trade since being transferred to the NEX.) A 2 cent/share drop in Silvio Ventures Inc., a 0.5 cent/share drop in Toba Industries Ltd. [NEX: TBG.H], a 3 cent/share drop in infrequently traded X-Tal Minerals Corp. [NEX: XMT.H], and a mere half-cent/share drop in new NEX issue Biomerge Industries Ltd. [NEX: BIL.H] all contributed to a drop in the BBCI of almost three-tenths of a point. It was actually Biomerge that was responsible for most of the decline at that time, because of the large number of its total shares outstanding: almost 250 million of them.

After shedding more than a tenth of a point in the next minute, BBCI partially reversed its downtrend shortly after 11 AM ET, pushing the BBCI up above 85 1/3. A dip at about 11:30 PM ET reversed itself twenty minutes later, keeping the decline relatively slight until 12 PM ET, when the downturn revived in earnest. A 5 cent/share drop in the first trade of another infrequent trader, Pacific Wildcat Resources Corp. [NEX: PAW.H], pushed the index down more than 0.15 points between noon ET and 12:01 ET.

The drop continued, with only minor reversals, for most of the afternoon. By 2:09 PM, the BBCI dipped below 85; after a recovery to slighly above that level, 85 became a quickly receding ceiling. After a secondary uptrend starting at 3:02 PM ET, which carried the index to a little more than 0.3 points below 85, the BBCI dropped to below 84.5. Another secondary uptrend fizzled, putting the index back below 84.5, but a near-last-minute rise in Rocher Deboule Minerals Corp. [NEX: RD.H] pulled the index up to its closing value of 84.54.

Here are the values (rounded to a hundredth of a point) for the Barrel's Bottom Composite for the NEX, hour by hour:
  • 10 AM: 85.64
  • 11 AM: 85.23
  • 12 PM: 85.36
  • 1 PM: 85.08
  • 2 PM: 85.08
  • 3 PM: 84.60
  • 4 PM/Close: 84.54


Thirty-six NEX stocks traded today. Of these, 7 advanced, 14 declined and 15 remained unchanged. There were 134 trades. The top trader in terms of raw volume was the same as yesterday's and that of the day before: Toba Industries Ltd. [NEX: TBG.H], with 298,667 shares traded today. Golden Hat Resources Inc. [NEX: GHA.H] was the runner-up once again in raw-volume terms. The other Barrel's Bottom report and the TSX Venture closing summary both named Toba as today's top trader in terms of value of shares traded as well, as it was yesterday too. Toba placed fourth on the top-ten list of volume traded divided by total shares outstanding, found below; Golden Hat placed sixth.

There was one news release from a NEX company that was picked up by Marketwire today. Rocher Deboule announced that it has applied for drilling permits for its Artillery Peak Manganese Project. If granted by the Bureau of Land Management (Mohave County, Arizona,) the drilling should start in mid-November, according to the release. Historical studies for the Chapin West Showings indicate that there are economic levels of manganese in Artillary Peak, although Rocher has no contemporary studies confirming it as of yet except for surface samples. "The historical resource for the Artillery Mountain manganese deposits is estimated at 175,000,000 tonnes averaging 3.5 - 4% Mn as reported in Manganese Deposits of Western Arizona 1958 Information Circular #7843 by (L.L. Farmham and L.A. Stewart). Approximately half of the deposits are on the Rocher Deboule Minerals Corp. claims." The news release itself has further details. As mentioned above, Rocher closed at 46 cents/share today, down 2 cents/share since yesterday's close. The release was disseminated a few hours before trading opened.

There was one bulletin from a NEX company in today's TSX Venture Daily Bulletins, found at the bottom. It announces a halt in the trading of Emergence Resort Canada Inc. [NEX: ERS.H] pending a news release. Emergence didn't trade at all today, because the halt was issued as of 6:04 AM PT, or 9:04 PM ET; it was in force as of the opening of trading. ERS.H last traded yesterday, closing at 36 cents/share for a gain of 2 cents/share on that day. Canjex Publishing has a webbed copy of the bulletin.

Three news items from NEX companies were sent out exclusively through Canjex today. The first release announced the filing of interim unaudited financial statements [PDF file] from Tapestry Resource Corp. [NEX: TPR.H] for the quarter ending July 31st. Tapestry had no income for this quarter, nor did it for the corresponding quarter last year. Expenses, of which $14,338 were for bank charges and interest, totaled $39,767 for this quarter, up from $34,362 from the same quarter of last year. An increase in the bank charges and interest accounted for all of the rise in expenses; the others stayed the same. Tapestry has $1,102 in cash, not including $3,000 in restricted cash listed on its balance sheet. Book value was -28.5 cents/share this quarter, down from -27.0 cents/share as of the corresponding quarter last year. The corresponding M D & A [another PDF file] discloses that Tapestry has had no revenue since (at least) FY 2005, and currently has a working capital deficiency of $730,673. It also states that "The Company’s continued existence as a going concern is dependent upon the continued support of related parties and its ability to raise adequate long-term financing." Tapestry traded only once today, right at the open, with an odd-lot trade of 100 shares at 52 cents/share. The last board-lot-sized trade was made on September 11th, at the closing price of 55 cents/share.

The second release comes from Golden Hat Resources Inc. [NEX: GHA.H], which was disseminated after the market closed. It announces the completion of a geochemical survey at the Telegraph Creek property. The samples gathered have been sent to the analytical company already contracted to analyze the samples, SGS Minerals Services. Golden Hat closed at 6 cents/share, down 0.5 cents/share as the result of a flurry of trades in the last half-hour of trading. It briefly reached 7 cents/share until a block of 120,000 shares, in three trades with Wolverton as the sell-side finincial institution, were made at 6 cents/share as of about 3:45 PM ET. Those three trades were the last of the day's seven in GHA.H.

The third and final release from Canjex today is another announcement of the filing of interim (unaudited) financial statements, from Tapango Resources Ltd. [NEX: TPA.H]; these were also released after the close of trading. The financials themselves [PDF file] show that Tapango, as of the second quarter of FY '08, despite having no revenue and a loss of $366,421 largely due to $312,000 in "stock-based compensation," is sitting on $491,321 in cash, with only $16,952 in current liabilities. (Total current assets for this most recent quarter are $503,685.) Book value is 0.737 cents/share, up from 0.708 cents/share as of the corresponding quarter last year (2Q FY '07.) Cash flow was $10,080, thanks to the issuance of $68,000 in stock as a result of the exercise of warrants, as explained in the M D & A [PDF file], where the interest income on the cash is also disclosed as part of "Interest and Other Income" ($6 ,743 for the most recent quarter.) Tapango intends to use the cash to acquire a resource property at some future date. The stock closed at 50 cents/share today, unchanged.

Despite two others trading exactly ten times today, there was only one NEX stock that traded more than ten times. Once again, Silvio Ventures Inc. [NEX: SIV.H] had the most numerous trades today, with twenty of them. Seven out of those twenty were board-lot sized; the other thirteen were odd lotters. The board lots went for prices ranging from 51 to 53 cents/share, and the odd lots went for prices ranging from 48 to 50 cents/share. The first odd-lot trades in SIV.H were for that 50 cents/share, and the first board lot went for 53 cents/share; at the end of the day, the last board lot went for 51 cents/share and the last odd lot went for 48 cents/share. The gap between board-lot and odd-lot price seems to be narrowing. SIV.H closed at 51 cents/share, down 2 cents/share from the previous day's close; its daily volume was 12,367 shares.

The top percentage gainer in today's trading was Trilogy Metals Inc. [NEX: TRI.H], which closed at 50 cents/share for a gain of 18.5 cents/share or 58.73%. Trilogy traded eight times today, although seven of the eight were within one minute of each other. The first trade, at about 11:06 AM ET, was for 4,000 shares at 40 cents/share. The other seven went at prices ranging from 42 cents/share to 50 cents/share; three of them went for the highest price. Six of those seven trades, comprising 21,000 shares, had an anonymous institution on the buy side, suggesting a bought block of that size or close to. The other trade, though, an odd-lotter of 400 shares at 47 cent/share, had Wolverton as the sell-side financial institution, and it was the sixth trade of the day. Total daily volume for Trilogy was 25,400 shares. Trilogy made spot #5 on the top-ten list of traders as measured by daily turnover of the float, found just below.

The top percentage decliner for today was Biomerge Industries Ltd. [NEX: BIL.H]. Its first trade since being listed on the NEX dropped the price from the pre-trade value of 2 cents/share to 1.5 cents/share, on volume of 2,000 shares at about 10:50 AM. This one trade, the only in BIL.H today, made for a 0.5 cent decline, or 25%.

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] - 0.863% of total shares outstanding;
  2. Jalna Minerals Ltd. [NEX: JMA.H] - 0.847% of TSO;
  3. Gainey Resources Ltd. [NEX: GRD.H] - 0.558%;
  4. Toba Industries Ltd. [NEX: TBG.H] - 0.545%;
  5. Trilogy Metals Inc. [NEX: TRI.H] - 0.532%;
  6. Golden Hat Resources Inc. [NEX: GHA.H] - 0.523%;
  7. Arcland Resources Inc. [NEX: ADR.H] - 0.458%;
  8. MP Western Properties Inc. [NEX: MPW.H] - 0.415%;
  9. X-Tal Minerals Corp. [NEX: XMT.H] - 0.397%;
  10. Champlain Resources Inc. [NEX: CPL.H] - 0.370%.

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

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