September 28th NEX

In Friday's NEX trading, the Barrel's Bottom Composite index closed at 86.83, up 2.29 points or 2.71% from the previous day's close of 84.54. Two stocks were largely responsible for this upsurge, most of which took place in the last two hours of trading. ITI World Investment Group Inc. class 'A' [NEX: IWI.H] opened at 40 cents/share right at the start of trading, for an opening gain of 7 cents/share. It stayed at approximately that level until about 2:32 PM ET, when it shot up through 45 cents/share to 50 cents/share, at which it closed. The second stock was Devin Energy Corporation [NEX: DVC.H], which shot up 71 cents/share to close at $1.35/share on its last trade, of 500 shares, of the day and week. Devin didn't start trading until about 2:48 PM ET, and its first trade of 1000 shares was at the same price as its previous close, 60 cents/share. From that point, though, DVC.H went up quickly, although it didn't cross the $1.00/share mark until that last trade. There's more on both stocks below.

Those two were far from the only gainers, even though ITI was the only one as of 10 AM ET. The opening trade in Abitibi Mining Corp., at 15 cents/share, was four cents/share above its previous close, reversing a dip in the stock that only lasted for less than an hour on Thursday. Also opening higher was Consolidated Westview Resource Corp. [NEX: CWS.H], on its only trade of the day, at 34 cents/share for a 6.5 cent/share gain on 2000-share volume between 10:18 and 10:19 AM ET. Both bumped the BBCI up, although Abitibi added more of an upkick than Westview. Golden Hat Resources Inc. [NEX: GHA.H]'s opener between 10:59 and 11:00 AM ET, at 7 cents/share for a gain of 1 cent/share, also added a boost to the index, although GHA.H fell back to 6 cents/share between 1:21 and 1:22 PM ET and only partially recovered at about 2 PM ET to close at 6.5 cents/share for a 0.5 cent/share gain. The BBCI stayed relatively flat until Devin kicked in, with some up-and-down ranging, starting at about 1:11 PM ET.

ITI and Devin weren't the only two gainers pushing the BBCI up in the last hour of trading, though. In its first and only trade of the day, of 10,000 shares between 3:18 and 3:19 PM, Gold Star Resources Corp. [NEX: GXX.H] gained 3 cents/share to open and close at 17 cents/share. There were, of course, some decliners too on Friday, but most had minor drops.

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: 84.71
• 11 AM: 85.19
• 12 PM: 85.18
• 1 PM: 85.22
• 2 PM: 85.24
• 3 PM: 85.68
• 4 PM/Close: 86.82

Thirty-five NEX stocks traded Friday. Of these, 11 advanced, 4 declined and 20 remained unchanged. There were 116 trades. The top trader in terms of raw volume was Thursday's runner-up: Golden Hat Resources Inc. [NEX: GHA.H], with 145,000 shares traded on Friday. The other Barrel's Bottom report and the TSX Venture closing summary both named
Rocher Deboule Minerals Corp. [NEX: RD.H] as the top trader in terms of value, as well as Friday's runner-up in terms of raw volume. RD.H was one of the four decliners, closing at 45 cents/share for a drop of 1 cent/share on the day. Golden Hat placed sixth on the top-ten list of volume traded divided by total shares outstanding, found below; Rocher placed eighth.

There was one news release from a NEX company that was picked up by Marketwire today, although it's one that is seeking an exit from the NEX Board. Isee3d Inc. [NEX: ICT.H] has submitted an application, as of September 19th, to move to the TSX Venture Tier 2, and also plans to raise $1,200,000 through a private placement. (TSX regulations forbid a NEX company from raising more than $500,000 through private placements in a 12-month period, as the release specifies.) So, the closing of this private placement won't happen until/unless approval is granted to move to the Tier 2. The detaisl of the placement are: 4,000,000 units, if fully subscribed, at a price of 30 cents/unit. Each unit contains one common share and a warrant to purchase another at exercise price of 50 cent/share with life of 1 year and hold period of four months of the year once the placement closes. Once the warrants can be bought and sold, Isee3d has the right to cancel the warrants (specifically, redeem them for 1/10 of a cent per warrant) "at any time after the Company's listed common shares have been trading above a daily close of $0.60 for fifteen (15) consecutive trading days." Proceeds will be used "to further develop the Company's technology and proceed with the commercialization of its assets." Some will be used for working capital. ICT.H only traded an odd lot on Friday, of 53 shares at 29 cents/share at about 1:58 PM ET, so its closing price was the same as the previous close, set on Thursday, of 31 cents/share. The release was disseminated after trading closed for the week.

There were six NEX companies mentioned in two bulletins at the bottom of Friday's TSX Venture Daily Bulletins; both are found at the bottom. The first bulletin mentions five NEX stocks that are to be delisted as of the start of Monday's trading for not paying their NEX listing maintenance fee for the quarter. All five are suspended. Battery & Wireless Solutions Inc. [NEX: BWS.H], Canadian Stevia Corporation [NEX: SWT.H], MaxxCapp Corporation [NEX: MXP.H],
MIT Ventures Corp. [NEX: MVC.H] and WorkGroup Designs Ltd. [NEX: WGD.H] are NEX companies no more, as of October 1st.

The other NEX company mentioned in the Bulletins is Rose Marie Resources Ltd. [NEX: RSR.H], which got TSX Venture Exchange permission to lower the exercise price of 3,000,000 warrants, which expire on April 9th of next year, from 13 cents/share to 11 cents/share. They were issued as part of a private placement of 3 million shares early last spring. RSR.H closed at 11.5 cents/share, up 1.5 cents/share from Thursday's close. Canjex Publishing has a webbed copy of the bulletin.

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There was a relative flood of news releases from NEX companies that were sent out exclusively through Canjex today; seven sets of them announced the filing of financial statements. The first one, released last night, wasn't a financial-statements filing notice; it was a progress report from DVD Investments Limited [NEX: DVD.H]. It announced that the closing of the Mooncor Energy Ltd. reverse takeover was expected as of Friday, as was the completion of a financing package consisting of "a minimum of $2-million of non-flow-through units at a subscription price of 50 cents per unit and flow-through units at a subscription price of 60 cents per FT unit and a minimum of $2-million of a 30-month convertible subordinated secured debenture." The debenture carries an annual rate of 8% in balloon-payment format, with interest payable either on conversion or at maturity, and is convertible into shares of DVD into units at a price of 50 cents/unit for two years and sixty cents/unit for the last six months of the debenture's life. According to the release, this financing is expencted to increase the float by a minimum of 4 million shares. The entire reverse takeover is expected to leave about 8% of the newly-structured DVD in the hands of current DVD shareholders, about 7% in the hands of the buyers of the units, and about 85% in the hands of Mooncor shareholders. (Hence the name "reverse takeover" that's applied to this kind of financial maneuvering.) DVD.H is currently halted; its last close was at 60 cents/share, made as of November 3rd, 2006. There has been no update to the progess report disseminated as of yet.

As mentioned above, there were seven NEX companies that announced the filing of financial statements over the course of Friday. eTV Technology Inc. has filed thee pairs of financial statements and M D & As, evidently to get up to date on its filings so as to come out of suspension. The periods covered, the quarters ending December 31st, 2006 [financial statements PDF file; M D & A PDF file], March 31, 2007 [financial statements PDF file; M D & A PDF file] and June 30th, 2007 [financial statements PDF file; M D & A PDF file], put eTV up to date in the filing of its interim financial statements. As of the most recent quarter, eTV had no revenue; general and administrative expenses ballooned to $86,397 from $11,198 as of the second quarter of 2006. The M D & A explains the increase as "mainly a result of increased management fees incurred in restructuring the company." The first page states that, as of "June 30, 2007, the Company had not yet achieved profitable operations, has accumulated losses of
$12,242,269 since its inception, has a working capital deficiency of $554,727, and expects to incur further losses in the development of its business, all of which casts substantial doubt about the Company’s ability to continue as a going concern." Book value is below zero: -4.9 cents/share. eTV does, however have accumulated tax losses of $1,771,334, which expire in tranches between 2008 and 2017. These are not vendible.

The first of six regular interim (unaudited) financial statements were filed by a company that was reinstituted for trading at the beginning of this month. BHR Buffalo Head Resources Ltd. [NEX: BHR.H] [PDF file]. As of the most recent quarter, ending July 31st, BHR has $1,835 in cash and a working capital deficiency of $170,495. Book value is -3.93 cents/share, and no revenue has come in: none since, at the latest, the first quarter of 2006. Note 8 discloses that the proceeds from a private placement in the works will be used partially for "the payment of certain debt obligations of approximately $175,000." The planned value of the private placement is $675,000, and it has not received regulatory approval. Evidently, BHR securing the full amount is contingent upon it moving to Tier 2 of the VSE. The M D & A [PDF file] states on its first page that the company is kept afloat through loans from directors. BHR.H didn't trade on Friday; its last close, as of last Tuesday, was at 15 cents/share.

Second on the financials list is Consolidated Global Cable Systems Inc. [NEX: GCS.H], whose financial statements [PDF file] are also unaudited interim ones, for the second quarter of FY 2008. Global Cable is another inactive company, with no revenues since the first quarter of FY 2007 at the latest, a loss of $20,076 for the most recent quarter which ended August 31st for a (stable) loss of 0.412 cents/share, and a book value of -9.62 cents/share. The company is being kept afloat by loans from related parties, which are interest-free and have no specified terms. The accompanying M D & A [PDF file] does mention a $550,000 lawsuit hanging over Global Cable's head, originally filed by Boston Telecommunications Group, Inc. in late 2002 because of a busted partnership agreement. So does note 4 of the financial statement. Global Cable has been named as "a defendant," according to that note. The lawsuit has already been dismissed in regualr court, and is currently under appeal. Global Cable's working capital deficiency is $468,993. GCS.H didn't trade on Friday; its last close, as of Sept. 13th, was at 17 cents/share.

Next was Silvio Ventures Inc. [NEX: SVC.H], one of the most active traders in terms of number of trades this past week. The interim financial statements, for the second quarter of FY 2007 which ended July 31st [PDF file], show cash on hand in the amount of $403,592 and working capital in the amount of $391,037. Book value is positive as well, in the amount of 4.57 cents/share as of 2Q '07; as of 4Q '06, it was negative. The increase was enitely due to an addition in shareholders' equity and a new contributed surplus; no income was recorded for 2Q '07. Losses increased to $53,669 as compared with $5,622 for 2Q '06, as a result of professional fees incurred for a planned reverse takeover of/by Frontenac Ventures Corp.; it was cancelled after the end of 2Q '07, according to the accompanying M D & A [PDF file]. Although the company has cash, it got the cash from a financing. There are no planned capital expenditures as of the time of preparing the M D & A. Silvio closed Friday at 50 cents/share, down 1 cent/share from Thursday's close.

Abitibi Mining Corp. [NEX: ABB.H] has filed a full annual report for fiscal year 2007, ending May 31st of this year, containing financial statements [PDF file] and accompanying M D & A [PDF file]. The financial statements have been audited with an unqualified opinion from the auditors. Abitibi Mining has $74,340 in cash as of May 31st of this year, but has a working capital deficit of $659,113. Almost all of the deficit is due to the current-liability item "Due to Related Parties," in the amount of $737,359, up from $519,244 as of the end of FY 2006. Unlike at the end of FY '06, book value at the end of FY '07 is negative: -1.04 cents/share using the then-current number of total shares outstanding in the report. No revenue was recorded for either FY '07 or FY '06. Net loss for FY '07 would have been less than the one for '06 had it not been for the write-off of $446,115 in mineral properties costs, associated with Abitibi Mining's plan to move to Tier 2 of the Venture Exchange by acquiring properties. The M D & A specifies: "Additions to the deferred expenditures during the year relate to the acquisition of the Legris Lake Property in Ontario and the Chapleau Diamond Project." It also specifies that the lessening of the loss before other items (also in the income statement are losses/gains on marketable securities and a gain from option income on mineral properties, which only appeared in FY '06) is due to "a reduction of $356,600 in stock based compensation as the Company did not grant options in the past year but did in the prior year." Both directors' fees and administrative services have increased, as the company moves towards the Tier 2 and gets more active (the respective reason cited for each increase.) Cash flow was kept mildly negative in FY '07 due to financing activities. Note 1 of the financial statments says that Abitibi Mining needs cash from further financings, intended to be private placements, to keep afloat. It has a portfolio of at least seven claims groups. Only two of them, according to note 4, have had money spent on (as opposed to for) them: the Chapleau Claims and the Legris Lake properties; both had money spent for "Line cutting, survey, geoservices." Only Chapleau Claims has had money entered into the "Exploration administration" account. The Legris Lake property requires Abitibi Mining to spend $750,000 over the next five years to keep its 100% interest, as well as further outlays of cash over the next four years totalling $125,000. Hanging on to interests acquired in four recently-optioned properties is contingent upon Abitibi Mining moving to Tier 2 of the Venture.

Fifthly, Module Resources Incorporated [NEX: MLE.H] has released its interim and unaudited financial statements for the quarter ending July 31st of this year, the third quarter of FY 2007. [PDF file]. Module has $238,714 in cash and cash equivalents on the balance sheets and working capital of $200,477, up from $87,895 as of 3Q '06. Accounts receivables ballooned to $36,777 from a negligible amount, but so did current liabilities due to related parties to $56,403. According to note 4 of the financial statements, there are no interest charges or fixed terms of repayment for those due-to-related party liabilities. Book value is positive, in the amount of 1.71 cents/share using the number of shares issued from Note 3(b). Cash and cash equivalents increased by $65,968 during 3Q '07 because of financing inflow of $158,240 due to shares issued and an increase in related-party loans in the amount of $50,067, making up for the use of $142,339 in that period. 3Q '06 saw the use of $12,516 in cash, partially balanced by an $8,000 advance from related parties. The accompanying M D & A [PDF file] specifies the reason for the increased loss and drain of cash, before related-party financing and issuance of shares: "In both comparative periods the Company incurred higher expenses for exploration, securities and investor relations, legal and audit, and office and administration. The increased expenses reflect increased business activity related to the Company optioning the Carolin property from Century Mining." It also specifies that the $158,240 inflow is the "balance of proceeds from the $400,000 private placement" made in the quarter, and that further financings will be needed to develop the Carolin property. MLE.H didn't trade Friday; it last closed on Thursday at 24.5 cents/share.

Sixthly and finally, the unaudited interim financial statements of Achieva Development Corp. [NEX: AHE.H] [PDF file] and the accompanying M D & A [another PDF file] for the third quarter of this fiscal year have also been filed. Achieva has $170,337 in cash and cash equivalents and working capital of $169,547, according to the M D & A. No income has been earned by Achieva since of the beginning of FY '06, most recently. The loss for the quarter shrunk to $40,847 from $65,876 in 3Q '06 due to a reduction in both professional fees and filing & transfer fees. Cash and cash equivalents decreased $38,883 during this period, almost all as a result of quarterly expenses as listed in what would be the income statement had there been any income. Acheiva is currently in negotiations for a reverse takeover of/by Dominion Metals Corp., as note 5 of the financials explains. Trading in AHE.H is currently halted.

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Three NEX stocks traded more than ten times on Friday, and all three of them had exactly the same amount of trades - fifteen each - making for a three-way tie in this category. Silvio Ventures [as noted above, SIV.H] was one of them. Five out of the fifteen trades in SIV.H were baord-lot sized, but all of them had four-figure volumes. Prices for the board lots ranged from 50 to 51 cents/share, and trading in odd lots ranged from 48 cents/share to 44.5 cents/share. The last six odd-lot trades, comprising a total of 894 shares, were all at that 44.5 cents/share price; those trades were the seventh- to the second-last trades of the day. (The last one was for 4,000 shares at a price of 50 cent/share, SIV.H's closing price.) SIV.H traded 86 times this week, with 63 of those trades being odd-lot sized. All 63 had PI Securities as the buy-side financial institution. Friday's volume for SIV.H was 17,106 shares. For the second day in a row, SIV.H got in the bottom spot on the top ten daily-turnover list, found below.

The second trader with 15 trades on Friday was Rocher Deboule Minerals Corp., already noted above as one of Friday's four decliners; RD.H dropped a penny a share to close at 45 cents/share. Had there not been six trades, totalling 59,500 shares, all sold through BMO Nesbitt during the last five minutes of trading, at prices ranging from 42.5 cents/share to 45 cents/share, Rocher wouldn't have been in this list. All of the first 7 trades of the day went for 46 cents/share, and the eighth went for 45 cents/share at about 2:24 PM ET. Trades four through six (in chronological order) had RBC as the sell-side financial institution, with a total of of 10,000 shares between those three which were made between about 1:25 and 2:05 PM ET.

The third and final NEX stock with fifteen trades was ITI World Investment Group Inc. class 'A' [NEX: IWI.H, to remind you], which was discussed above as one of the day's two big leapers. Twelve or fourteen of these fifteen seem to be part of three or four bought blocks: the first three went at two seconds after the opening and had Qtrade as the buy-side financial institution. 27,000 shares were bought through Qtrade at that time, all at a price of 40 cents/share. The second presumed block comprised six trades, all with TD Securities as the buy-side financial institution, which went at times ranging from about 2:28 to 2:36 PM ET and prices ranging from 40 cents/share to 50 cents/share. A total of 17,500 shares of IWI.H were bought through TD at those times. A third presumed block consisted of three trades, the last three of the day, all through Penson. These trades in the third presumed block were made between about 2:42 PM and 3:08 PM ET, and all at a price of 50 cents/share. 3,000 shares were bought through Penson in that time range. (There might have been another bought block through two trades at about 1:21 to 1:22 PM ET, both with Northern Securities as the buy-side financial institution, at 39 cents/share with total volume of 5,500 shares.) All told, the trading in ITI class 'A', which closed at 50 cents/share with a gain of 17 cents/share, presents a pattern of at least a few multi-trade blocks that were part of a buying spree. Note, though, that this conclusion is based upon the sketchy information provided by the trades data, making it the product of educated guesswork. IWI.H placed fourth on the top-ten list by volume as a ratio of TSO or the float, found below.

The top percentage gainer in Friday's trading, by far, was Devin Energy Corporation [NEX: DVC.H], which was the only triple-digit gainer in a trading day this month. Devin closed at $1.35/share for a gain of 74 cents/share, or 121.3%, on the day. Eight trades, totalling 8,500 shares, accounted for it. All of them were bought through E-Trade. Five of the eight trades were for 99 cents/share; the first and second, for 1,000 and 2,000 shares respectively, were for 60 cents/share and 80 cents/share. Devin was pushed above the dollar-a-share point by the eighth and final trade; thanks to that rise, those 500 shares comprised five board lots instead of the single board lot they would have been had DVC.H stayed below a dollar per share. Devin 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 Friday was X-Tal Minerals Corp. [NEX: XMT.H], with a close at 53 cents/share for a drop of 7 cents/share or 11.68%. X-Tal was the only NEX issue to decline by more than a single-digit percentage that day. One sole trade of 1,000 shares, at about 2:03 PM ET, put XMT.H in this spot, although it did come within a cent of its 52-week low. For perspective's sake, XMT.H's 52-week high is 70 cents/share.

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

1. Magnate Ventures Inc. [NEX: MGV.H] - 2.47% of total shares outstanding;
2. SMC Ventures Inc. [NEX: SMV.H] - 1.04% of TSO;
3. Rose Marie Resources Ltd. [NEX: RSR.H] - 0.746%;
4. ITI World Investment Group Inc. class 'A' [NEX: IWI.H] - 0.485%;
5. Dorato Resources Inc. [NEX: DRI.H] - 0.432%;
6. Golden Hat Resources Inc. [NEX: GHA.H] - 0.420%;
7. eReservation Systems Corp. [NEX: RSS.H] - 0.359%;
8. Rocher Deboule Minerals Corp. [NEX: RD.H] - 0.356%;
9. Focus Ventures Ltd. [NEX: FCV.H] - 0.208%;
10. Silvio Ventures Inc. [NEX: SIV.H] - 0.200%.

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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