NEX Report for October 30, 2007

On Tuesday, the Barrel's Bottom Composite Index for the NEX closed at 89.88, down 0.16 points or 0.178% from its previous close of 90.04. Despite that drop, the BBCI was up for most of the day. This uptrend started right at the first minute of trading, despite a 4 cent/share opening drop in IDG Holdings Inc. [NEX: IDH.H], because of a 2 cent/share opening gain in Monster Uranium Inc. [NEX: MU.H], a 1 cent/share opening gain in the price of Rocher Deboule Minerals Corp. [NEX: RD.H] and a 1 cent/share rise in the price of yesterday's dominant stock, Trilogy Metals Inc. [NEX: TRI.H]. The combination of these four movers put the BBCI up by about 0.08 points in the first minute of trading.

The index bounced around the 9:31 AM ET value for the next six minutes before 9:37 AM ET, when a further 1 cent/share rise in Rocher's price put the index well above 90.15. Trilogy's rise to 86 cents/share put the BBCI above 90.2, but it was a 0.5 cent/share interday rise in the price of Biomerge Industries Ltd. [NEX: BIL.H] that provided the big boost to the index as of about 9:49 AM ET. The BBCI reached 90.56 at that time. Except for a brief up-blip to almost 90.7 that lasted one minute and which established the high of the day, the BBCI stayed at that level until 10.49 AM ET, and about at that level until 11:19 AM ET. A later rise in Rocher put the index well above 90.5 at that time; the index stayed between 90.5 and 90.6 until 12:45 PM ET.

It was at this time that the uptrend ended. The next twenty-five minutes saw a quick decline that ended up at just above 90 by 1:10 PM ET. The stock that put the BBCI there at that time was Moneta Resources [NEX: MOT.H], whose two trades during the day, both made at exactly the same time, dropped its price by 5.5 cents/share. The decline continued apace until the day's low of 89.69 was reached at 1:43 PM ET. The BBCI stayed at this level until 2:03 PM ET.

The rest of the day saw a jagged recovery. 89.8 was reached as of 2:24 PM ET. After a short dawdle, the index moved above 89.84 as of 2:39 PM ET. This secondary recovery didn't last, though; it began caving as of two minutes before the last hour of trading started. A leap-up to above 89.94, as of 3:17 PM ET, lasted only eleven minutes before it vanished. The BBCI spent the last thirty-one minutes of trading on a downward drift, which ended with it reaching its closing value of 89.88


Here are the hourly values for the Barrel's Bottom Composite Index, rounded to the nearest hundredth of a point:

• 10 AM ET: 90.56
• 11 AM ET: 90.51
• 12 PM ET: 90.67
• 1 PM ET: 90.37
• 2 PM ET: 89.75
• 3 PM ET: 89.89
• 4 PM ET/Close: 89.88

This is the first part of the daily NEX report. The second part covers NEX stocks that have sent out news releases during October 30th and the third part covers NEX stocks of note for that day.


[An earlier version of this part of the report has been posted at the Barrel's Bottom Blog over at Stockhouse.]


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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News Releases From NEX Companies For October 30th

There was one news release from a NEX company that was picked up by Marketwire on Tuesday, and it was an unusual one. E.G. Capital Inc. [NEX: EGC.H] released a summary of its quarterly results, as distilled from E.G.'s quarterly interim unaudited financial statements [PDF file] and its accompanying M D & A [another PDF file.] E.G. managed to announce a second-quarter profit, of $24,416 or 0.128 cents/share. These earnings resulted from $52,571 in revenue which resulted from the recovery of previously-written-off joint venture income. Since selling, general and administrative expenses amounted to $27,846 during that same quarter, E.G had earnings, as compared with a $2,783 loss before any extraordinary items, of which there were none in the quarter ending on August 31, 2006. The news release itself contains further details on E.G.'s. performance, both for the 2nd quarter and for the first half.

There were no bulletins from any present NEX company in Tuesday's TSX Venture Daily Bulletins, but there was one from a Tier 2 company that is joining the NEX board. Stone Mountain Holdings Inc. [VSE: SMO; as of the beginning of trading on October 31st, NEX: SMO.H] no longer qualifies to be a Tier 2 company, so it's joining the NEX. Other than that, nothing about Stone Mountain is changing. Canjex Publishing has webbed a copy of the Stone Mountain bulletin.

Three news releases were sent out exclusively through Canjex on Tuesday. The first came from Becker Gold Mines Ltd. [NEX: BGD.H], and it announces a future private placement of up to 4 million units at 12 cents/unit for total gross proceeds of up to $480,000. The units will contain one common share and a purchase warrant, with life of two years and strike price of 16 cents/share. "Company management expects that the net proceeds of the offering will be used to satisfy the company's outstanding payables, facilitate the company in identifying a suitable transaction that will enable the company to meet the minimum listing requirements of the TSX Venture Exchange and for general working capital." The rest of the news release announces that Jeffrey Becker will be resigning from his spot as president and director of Becker Gold; he will be replaced as president by Gary Freeman. BGD.H last traded on October 26th, and closed at 15.5 cents/share. That close was 0.5 cents/share above the sparsely-traded Becker's 52-week low.

The second release came from Noise Media Inc. [NEX: NMA.H]. It announces that a cease-trade order from the Alberta Securities Commission against Noise has been rescinded. NMA.H last traded in ealy 2003; its last close was at 4 cents/share.

The third release came from Millstreet Industries Inc. [NEX: MLI.H]. This release announces the unaudited interim results for the third quarter of this year, ended on August 31st, but focuses on the first nine months of FY 2007 instead of just the third quarter.. Like the E.G Capital release above, it distills the results from the also-released interim financials [PDF file] and accompanying M D & A [PDF file]. According to the news release, Millstreet earned $480,000 for the first nine months of FY '07. These earnings are the result of an unusual item, according to the financials: the sale of building and land for $663,000. Had it not been there, Millstreet would have had a $183,000 loss on $41,000 worth of revenue. Using the before-unusual-items comparison, though, Millstreet still shrunk its loss in the period: the loss for the first three quarters of FY '06 was $214,000 on $121,000 of revenue. In the third quarter of FY '07, there were no revenues at all, and expenses of $11,000 for a net loss of the same amount. Millstreet has approximately $55,000 in cash as of August 31st, which comprises its current assets. Since current liabilities are $2,786,000 in the same time period, Millstreet had a working-capital deficit of $2,731,000 as of August 31st.

In addition to the above items, there were also SEDAR-filed financial statements announced on Tuesday:

• Agrotech Greenhouses Inc. has filed its interim unaudited quarteries with accompanying M D & A.
• Focus Ventures Ltd. has filed its interim unaudited quarterlies with accompanying M D & A.
• Themac Resources Group Inc. has filed its audited annual financial statements for FY 2007 with accompanying M D & A.
• Radiant Resources Inc. has filed its interim unaudited quarterlies with accompanying M D & A.
• International LMM Ventures Corp. has filed its interim unaudited quarterlies with accompanying M D & A.

To read about the highlighted NEX stocks for Tuesday, you can go here.

International LMM Ventures Corp. Files Interim, Unaudited Statement With SEDAR

International LMM Ventures Corp. [NEX: LMM.H] has filed interim, unaudited financial statements for the third quarter of fiscal year 2007, ended August 31st, along with the accompanying Management Discussion and Analysis. According to the financials [PDF file], cash decreased from $2,515 as of the end of FY '06, or November 30/06, to $402. Current assets shrunk from $2,685 to $1,629: a $1,157 increase in GST receivables explains the differential. Current liabilities increased from $520,843 to $646,402 in the same time period. Consequently, the working capital deficit increased from $518,158 to $644,773. Book value decreased from -12.1 cents/share to -30.1 cents/share. (Had it not been for a 2-for-1 consolidation of shares as of July 19th, 2007, the latter figure would have been -15.0 cents/share.)

Expenses went up from $36,338, or 0.740 cents/share, in 3Q '06 to $55,525 , or 2.59 cents/share, in 3Q'07. Increases of $167 in filing fees, $4,700 in interest and bank charges, $13,699 in professional fees, and $775 in transfer agent expenses all contributed to the increase. Management fees and rent remained constant; office expense decreased by $154. Since there were no other items, the net loss for each quarter equalled the corresponding expenses; in per-share terms, the loss was 0.740 cents in 3Q '06 and 2.59 cents in 3Q '07. The cash flow statement reveals that the cash used in operations was replenished by loans. Note 4 discloses that the loan-payable outstanding is from a shareholder, is payable on demand, and bears interest at a 12% annual rate. As of the end of 3Q '07, $304,360 from this source is due, up from $250,677 as of the end of FY '06.

In relation to the loans, the accompaying M D & A [PDF file] states that "[t]he Company continues to rely on advances from related parties to continue operations and will continue operations to do so until adequate equity or debt financing is available to the Company." It also says that LMM is is no current line of business, but is looking for one. LMM.H last traded on Monday, on which it closed at 50 cents/share.

Radiant Resources Inc. Files Interim, Unaudited Statement With SEDAR

Radiant Resources Inc. [NEX: RRS.H] has filed interim, unaudited financial statements for the first quarter of FY '08, ended August 31st, along with the accompanying Management Discussion and Analysis. According to the financials [PDF file], cash as of the end of 1Q FY '08 was $352,141, down slightly from $356,749 as of the end of FY '07 on May 31st. Current assets also decreased slightly, from $357,312 as of the end of FY '07 to $353,406. Current liabilities increased from $13,033 to $20,885 due to a $7,411 increase in accounts payable & accrued liabilities and a $441 increase in the amounts due to related parties. As a result, working capital decreased from $344,279 to $332,521. Book value decreased from $344,279, or 8.50 cents/share, to $332,521, or 8.02 cents/share.

Expenses in 1Q '08 rose to $14,524 from $4,242 in 1Q '07. Had there not been a $10,070 in audit and accounting expenses, expenses would have been about the same in the two periods. Investment income decreased slightly, from $3,018 in 1Q '07 to $2,766 in 1Q '08. Consequently, the net loss increased from $1,224, or 0.0302 cents/share, to $11,758, or 0.283 cents/share. The decrease in cash was due to $5,049 used in operating activities, which was partially mitigated by the receipt of $441 in funds due to a related party.

The accompanying M D & A [PDF file] discloses that a reverse takeover of/by Alliance Pacific Resources Ltd. is in the works. Alliance Pacific is a private Ontario company that, through a joint venture, owns the right to explore and obtain exploration licenses "located in the western Altay Shan Mountain range of Xinjiang Province, adjacent to the Kazakhstan border innorthwestern China and south of Mongolia." The joint venture, of which Alliance Pacific owns 51%, already holds twelve exploration permits in that area. All that's left to complete the reverse takeover is the seeking of Radiant shareholder approval and finalization of a filing statement for the TSX Venture. The M D & A also notes that "[t]he company has sufficient liquidity to meet its current obligations" but may need additional financing for exploration activities if the reverse takeover goes through. Radiant is currently halted: it last closed on December 5, 2005, at 49.5 cents/share.

Themac Resources Group Ltd. Files Audited Annual Report With SEDAR

Themac Resources Group Ltd. [NEX: MAC.H] has filed its audited annual financial statements with SEDAR for fiscal year 2007, ended June 30th, along with the accompanying Management Discussion and Analysis. The financials [PDF file] got an unqualified opinion from the auditors.

Cash increased from $30,723 as of the end of FY '06 to $91,201 as of the end of FY '07. Current assets increased from $36,960 to $96,603, and current liabilities increased from $57,503 to $72,232. Consequently, the working capital deficiency of $20,543 to a surplus of $24,371. Book value also went from negative to positive during the same time period - specifically, from -20,543, or -0.538 cents/share in FY '06 to +24,371, or +0.496 cents/share in FY '07. The cash and book value both increased, due to $99,000 proceeds from 550,000 shares issued in a private placement at a deemed price of 18 cents/share and $66,666 received on exercise of 333,333 warrants at an exercise price of 20 cents/share.

Expenses for FY '07 shrunk to $156,713 from $224,714 in FY '06. Had there not been $68,970 in stock compensation, though, expenses would have increased slightly. Had loss on settlement of debt not shrunk by $28,837 to $8,462, expenses for FY '07 would have been significantly more than expenses for FY '06. Since there were no other items, expenses equalled the net loss for the year: 5.89 cents/share in FY '06 and 3.19 cents/share in FY '07. Note 4(b) indicates that the company issues shares in exchange for amounts owing on a recurrent basis.

The accompanying M D & A [PDF file] discloses that Themac has no properties. MAC.H last closed on October 19th at 23 cents/share.

Focus Ventures Ltd. Files Interim, Unaudited Statement With SEDAR

Focus Ventures Ltd. [NEX: FCV.H] has filed interim, unaudited financial statements for the third quarter of FY '07, ended August 31st, along with the accompanying Management Discussion and Analysis. According to the financials [PDF file], the cash shrunk from $105,015 as of the end of FY '06 to $51,187 as of the end of 3Q '07. Current assets shrunk from $110,092 to $57,105 during the same time period. Current liabilities shrunk slightly from $110,759 to $100,126, due to a $8,892 shrinkage in accounts payable & accrued liabilities and a $1,741 drop in amounts due to related parties. Book value shrunk for an almost negligable -$667 to -$43,021 or -0.630 cents/share.

Expenses for 3Q '07 shrunk to $13,533 from 3Q '06's $15,493. All of the expense items shrunk from 3Q '06 to 3Q '07 with the exception of regulatory and stock exchange fees which went up by $543 to $1,893. The other items comprise interest income, which shrunk from $1,131 to $623 from 3Q '06 to 3Q '07. The quarterly net loss shrank from $14,362, or 0.216 cents/share, to $12,910, or 0.189 cents/share. The shrinkage in cash was attributable to its use in operating activites, except for $2,732 in receipts from related parties and $84 in payments to related parties in 3Q '07. The same thing applies to 3Q '06, except that there was no cash gotten or used as a result of financing activities in the earlier quarter. Note 4 specifies that unpaid managment fees in the amount of $52,500 (net, cumulative) have been recorded as accrued liabilities, as compared with $30,000 (also net cumulative) at the end of 3Q '06.

The accompanying M D & A [PDF file] states that "Management expects that the Company will have sufficient working capital to meet its corporate commitments over the next 12 months, and to fund the search for a new mineral property interest for the Company. Actual funding requirements may vary from those planned due to a number of factors, including the progress of property acquisition and exploration activity. Management believes it will be able to raise equity capital as required in the long term, but recognizes the uncertainty attached thereto." In other words, Focus has enough cash and reserves to keep it afloat without the need for outside financing over the next 12 months. FCV.H last closed at 35.5 cents/share on October 16th; ever since then, only odd lots have been traded. One of 100 shares went on Tuesday, at 33.5 cents/share.

Agrotech Greenhouses Inc. Files Interim, Unaudited Statement With SEDAR

Agrotech Greenhouses Inc. [NEX: AGV.H] has filed interim, unaudited financial statements for the third quarter of FY '07, ended August 31st, along with the accompanying Management Discussion and Analysis. According to the financials [PDF file], Agrotech had $7,217 worth of cash as of August 31st, 2007, up from $5,187 as of November 30th, 2006. Current assets, though, shrunk from $53,187 to $14,965 in the same time period. Current liabilities increased, from $3,916,853 to $4,117,096, due to a $160,253 increase in accounts payable and accrued liabilities and a $40,000 increase in the amount of a demand loan. As a result, the working capital deficiency widened from $3,863,666 to $4,102,131. Book value also shrunk, from -21.9 cents/share to -26.3 cents/share.

For the third quarter of this fiscal year, Agrotech had no revenue and a loss before unusual or extraordinary items of $86,904 as compared with a $111,960 loss in the third quarter of FY '06. (These figures are not quite comparable because Agrotech had revenue coming in during 3Q '06.) A $57,000 write-off of a receivable increased the quarterly loss to $143,904, or 2.10 cents/share, as compared with 3Q '06's loss of 1.63 cents/share. There was also revenue - specifically, rental revenue - during the first quarter of FY '07 but no others, for a total of $36,000 for the first nine months of that year. Revenue in the first three quarters of FY '06 was $108,000. The loss before other items widened from $195,783 to $251,293, and the loss for the first three quarters of FY '07 widened further to $305,429 or 4.46 cents/share from 2.86 cents/share in the same period of FY '06. The statement of cash flows shows that the cash used in operating activities was $37,969, which was more than covered by an increase of $40,000 in the demand loan.

The accompanying M D & A [PDF file] explains that the write-off came from rental receipts foregone due to the renter going bankrupt. It also explains that a large part of the expenses was interest expense, in the amount of $287,293 for the first three quarters of FY '07 as compared with $195,783 in the first three quarters of FY '06. For the third quarters of FY '07 and '06 specifically, interest expense was unchanged at $51,978 for both periods. All loans are currently in default. $200,000 in loans are due to a related company controlled by a director of Agrotech. AGV.H last closed on Sept. 12th, at 2 cents/share.

Highlighted NEX Stocks For October 30th

[Correction Notice: In the original version of this report, there was a "Monday" when there should have been a "Tuesday." Apologies to anyone who was misled.]

Thirty-four NEX stocks traded on Tuesday. Of these, 7 advanced, 9 declined and 18 remained unchanged. There were 143 trades. The top trader in terms of raw volume was The Silver Recycling Company Inc. [NEX: TSR.H], with 280,000 shares traded; Biomerge Industries [NEX: BIL.H] was a close runner-up. There were only four trades in TSR.H, but one of them was a real whopper: the third trade, of 270,000 shares at 40 cents/share, which went at about 12:48 PM ET. The sell-side financial institution was an anonymous one, the same classification as the financial institution(s) for the first two trades of 3,000 and 5,000 shares. Those first two trades went at a price equal to the previous closing price, set last Thursday, of 44 cents/share. That third trade put TSR.H down 4 cents/share, while the fourth and last trade of 2,000 shares went at 37 cents/share, which put the stock down seven cents on the day. That last trade was sold through Scotia and bought through an anonymous financial institution.

According to the TSX Venture closing summary, the top trader in terms of value of shares traded for Tuesday was Rocher Deboule Minerals Corp. [NEX: RD.H], with Silver Recycling placing a close second. Rocher Deboule traded more than ten times on Tuesday, so its daily action is described below. Silver Recycling placed first on the top ten daily-turnover list, found below, and Biomerge placed tenth; Rocher placed fifth.

Four NEX stocks traded more than ten times on Tuesday. The most numerous trader in terms of number of trades was the same as Monday's: Trilogy Metals Inc. [NEX: TRI.H]. The action was much quieter for Trilogy than it was on Monday: 33 trades of TRI.H were made on Tuesday. The price range was also much narrower than Monday's: the lowest-valued trade was made at 83 cents/share and the highest was made at 87 cents/share. Starting with the eighth trade, made at about 9:42 AM ET, the price of Trilogy settled into a range, between 85 and 87 cents/share, which implies that a temporary equilibrium value has been found for the stock. Its close of 87 cents/share, which put it up 4 cents/share on the day, was made on daily volume of 121,300 shares. 14,000 shares, or $11,620 worth, traded at 83 cents/share; 5,000 shares, or $4,200 worth, traded at 84 cents/share; 15,000 shares, or $12,750 worth, traded at 85 cents/share; 7,000 shares, or $6,020 worth, traded at 86 cents/share; 80,300 shares, or $69,861 worth, traded at 87 cents/share.

The second-most-numerous was Rocher Deboule, with 19 trades on Tuesday. After an opening trade which put the price of RD.H one cent/share above Monday's close, the price moved up relatively swiftly: by about 10:25 AM ET, it had touched 50 cents/share thanks to two presumed bought blocks, of 30,000 and 20,000 shares bought through Canaccord and TD Securities respectively, which went at about 9:37 and 10:24 AM ET respectively. Both were made up of three trades each, and each triplet went at exactly the same time. The price of Rocher's shares sunk down to 48.5 cents/share in the middle of the day's trading, but went back up to 50 cents/share four minutes after 2 PM ET. The third-last trade, of 10,000 shares made as of about 3:17 PM ET, went at a price above 50 cents/share: 52 cents/share, to be exact. The final two trades, both sold and bought through Canaccord, went at the closing price of 50 cents/share. Those two trades, which went at exactly the same time, had a combined volume of 100,000 shares. RD.H closed at that same 50 cents/share, up 4 cents/share since Monday's close, on daily volume of 232,000 shares.

The third most numerous was Biomerge Industries Ltd. [NEX: BIL.H], with 17 trades. All but the last six of them seemed to be part of three bought blocks, of 6,000, 200,000 and 45,000 shares as of 9:30, 9:48 and 10:28 AM ET respectively, which composed two, seven and two trades respectively. Except for the first two, all of these trades went at 2 cents/share. The next two trades also went at 2 cents/share, but the next three put the price down to 1.5 cents/share. Since the last trade of the day was odd-lot size, of 913 shares at 0.5 cents/share, the closing price of 1.5 cents/share was set by the second-last one. Biomerge closed unchanged on the day.

The fourth and final NEX stock to trade more than ten times on Tuesday was Golden Hat Resources Inc. [NEX: GHA.H], with 11 trades. The first three of them were all sold through RBC at the same time; they comprised 37,000 shares of GHA.H. All of those shares went at 7.5 cents/share. The next three trade, of 2,000, 6,000 and 5,000 shares respectively, were bought through BMO Nesbitt at exactly the same time, about 12:49 PM ET. They all went at 8 cents/share. The next two trades seemed to compose a sold block of 35,000 shares. Interestingly, these two trades were at the day's high of 8.5 cents/share, even though they were bought through two different financial institutions. The third-last trade of 3,000 shares was also at 8.5 cents/share, but the last two went at lower prices: 7.5 and 8 cents/share respectively in order of dissemination. Both of them had volumes of 1,000 shares each, both went at exactly the same time of about 3:41 PM ET, and both of them were sold through Blackmont. Golden Hat closed at that same 8 cents/share, unchanged from Monday's close on daily volume of 90,000 shares.

The top percentage gainer in Tuesday's trading was Avigo Resources Corp. [NEX: TMX.H], which closed at 60 cents/share for a gain of 10 cents/share, or 20%, on the day. There were nine trades in Avigo, and the stock was up quite a bit from the first trade. The first five of those trades were bought through Canaccord, although they seemed to have been composed of two bought blocks and one single trade due to them going at different times. The first and the last of those five went at 47 cents/share, and the middle three went at 48 cents/share. The next two, of 3,500 and 45,000 shares respectively, went at the same time of 2:49 PM ET and were bought through an anonymous financial institution. The last two trades, of 5,000 shares volumes each, were also made at the same time and were bought through Global Securities. They both went at 60 cents/share, and the last of those two set the closing price. Daily volume in TMX.H was 77,000 shares.

The top percentage decliner for Tuesday was Magnate Ventures Inc. [NEX: MGV.H], which closed at 25.5 cents/share for a decline of 9.5 cents/share or 27.14%. Two trades, both going at the same time and at the same price, put Magante at its closing price. Those trades were for 4,000 and 1,000 shares respectively, totaling to the daily volume of 5,000 shares; both went at 2:59 PM ET and both were sold through National Bank.

Finally, here is the above-mentioned list of yesterday's top ten traders, as measured by % of total outstanding shares or daily turnover (all prices in per-share terms):

1. The Silver Recycling Company Inc. [NEX: TSR.H], closed at 37 cents for a loss of 7 cents - 2.88% of total shares outstanding;
2. Trilogy Metals Inc. [NEX: TRI.H], closed at 87 cents for a gain of 4 cents - 2.54% of TSO;
3. Avigo Resources Corp. [NEX: TMX.H], closed at 60 cents for a gain of 10 cents - 1.24% of TSO;
4. BHR Buffalo Head Resources Ltd. [NEX: BHR.H], closed at 19 cents for a loss of 1 cent - 0.939% of TSO;
5. Rocher Deboule Minerals Corp. [NEX: RD.H], closed at 50 cents for a gain of 4 cents - 0.730% of TSO;
6. Rose Marie Resources Ltd. [NEX: RSR.H], closed at 8.5 cents for a loss of 1 cent - 0.673% of TSO;
7. Golden Hat Resources Inc. [NEX: GHA.H], closed at 8 cents unchanged - 0.261% of TSO;
8. Magnate Ventures Inc. [NEX: MGV.H], closed at 25.5 cents for a loss of 9.5 cents - 0.231% of TSO;
9. Monster Uranium Corp. [NEX: MU.H], closed at 43.5 cents for a gain of 1.5 cents - 0.127% of TSO;
10. Biomerge Industries Ltd. [NEX: BIL.H], closed at 1.5 cents unchanged - 0.110% of TSO.

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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NEX Report for October 29, 2007

On Monday, the Barrel's Bottom Composite Index for the NEX closed at 90.04, up 2.00 points or 2.27% from its previous close of 88.04. Trilogy Metals Inc. [NEX: TRI.H] was the "stock of the day;" it's mentioned briefly in the second part of Monday's report and more copiously in the third part. It took off like a rocket after the trading halt imposed on it this morning was lifted as of 9 AM PT or noon ET. The leap upwards in the BBCI wasn't primarily caused by that stock closing at almost double the value of its previous close, though. Trilogy was only one of several influences: in fact, it wasn't the stock that vaulted the BBCI above the 89 level. The stock that did is found below.

The first minute of trading saw the BBCI up almost 0.3 points, solely due to a 0.5 cent/share opening rise in Biomerge Industries Ltd. [NEX: BIL.H]. The erasure of that gain by 9:52 AM ET put the BBCI exactly where it was as of Friday's close. No other movers appeared until 10:50 AM, when Moneta Resources [NEX: MOT.H] made a 0.5 cent/share gain that was erased six minutes later. Once again, the BBCI stood unchanged since Friday's close, this time until 10:57 AM ET.

The next move was to the downside, to below 88, due to a 7.5 cent/share drop in the price of Arcland Resources Inc. [NEX: ADR.H] as of its first board-lot-sized trade of the day. Once there, the index didn't move until 11:38 AM ET, when a 0.5 cent/share opening rise in Golden Hat Minerals Inc. [NEX: GHA.H] put it up more than 0.03 points. That rise wasn't enough to put the BBCI back above 88. Just before noon ET, it sunk further to the low of the day, just below 87.92, where it stayed for the last two minutes before 12 PM ET.

Then, Trilogy opened for trading. It was at this point that the BBCI vaulted solidly above 88, and it didn't look back. There were four trades in TRI.H in the first minute after noon ET; the fourth left TRI.H 39 cents/share above its previous close and the BBCI at 88.22. After a short-lasting pullback to 65 cents/share that took the BBCI down below 88.2 with it, Trilogy re-rallied, but it wasn't the only stock pushing the index above 88.3 as of 12:09 PM ET. A 2 cent/share opening rise in Cierra Pacific Ventures Ltd. [NEX: CIZ.H] aided too. By 12:19 PM ET, the BBCI was approaching 88.4, and climbed above it by 12:42 PM ET thanks to a 3 cent/share opening rise in Cobre Exploration Corp. [NEX: CXV.H]. A 1.5 cent/share pullback in CXV.H put the index right at 88.4, where it hung around until 1:10 PM ET when a 0.5 cent/share rise in Global Tree Technologies Inc. [NEX: GTT.H] put the BBCI above 88.45.

The BBCI's rise until 2 PM ET was solid but irregular; by that time, it was at about 88.55. A 4 cent/share rise interday rise in Challenger Development Corp. [NEX: CDQ.H] put it above 88.6 at 2:11 PM ET, and a 1 cent/share interday rise in Rocher Deboule Minerals Corp. [NEX: RD.H] put the index above 88.7. Despite these leaps, the BBCI spent the next seventy minutes drifting downwards to reach 88.59 as of 3:03 PM ET, until the final upspurt began.

It started slowly, at 3:24 PM ET, with a 1 cent/share rise in Moneta Resources that got the BBCI up to 88.65. A further 4 cent/share interday rise in Moneta got the index up to above 88.9 at 3:40 PM, but the gainer that vaulted the BBCI up more than a point, to place it above 90, was Tapango Resources Inc. [NEX: TPA.H] through a nine cent/share gain to establish the day's high for the index. After staying at 90.06 for the next ten minutes, it was pushed down gently by a last-board-lot-sized trade in Trilogy which dropped its price by 2 cents/share from the previous trade's level, leaving TRI.H at 83 cents/share for a gain of 41 cents/share from its previous close at 42 cents/share, and the BBCI at its closing value of 90.04.

Here are the hourly values for the Barrel's Bottom Composite Index, rounded to the nearest hundredth of a point:

• 10 AM ET: 88.04
• 11 AM ET: 87.92
• 12 PM ET: 87.92 [slightly less than 11 AM's value, but equalized due to rounding off.]
• 1 PM ET: 88.39
• 2 PM ET: 88.56
• 3 PM ET: 88.60
• 4 PM ET/Close: 90.04

This is the first part of the daily NEX report. The second part covers NEX stocks that have sent out news releases during October 29th and the third part covers NEX stocks of note for that day.


[An earlier version of this part of the report has been posted at the Barrel's Bottom Blog over at Stockhouse.]


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

News Releases From NEX Companies For October 29th

There were no releases from any NEX company that were picked up by Marketwire on Monday. There were, however, two bulletins from NEX companies in Monday's TSX Venture Daily Bulletins, both of which pertained to the same company: Trilogy Metals Inc. [NEX: TRI.H]. Both of them were short and succinct: the first announced a trading halt in TRI.H as of 6:06 AM PT, or 9:06 AM ET, and the second announced a resumption in its trading as of 9 AM PT or 12 noon ET. Since the market opens as of 9:30 AM ET, or 6:30 AM PT, these two imply that there was no trading allowed in Trilogy stock on Monday until noon ET. (As explained in the "Highlighted NEX Stocks for October 29th," it took off like a rocket once trading resumed. Despite the pending-news nature of the halt, none was forthcoming on Monday. The only related news item came down the pipe last Friday, announcing the takeover of all the shares of NWest Energy and the changes in Trilogy which this takeover will entail.) Canjex Publishing has webbed copies of both bulletins, one for the halt and one for the resumption.

Three news releases were sent out exclusively through Canjex on Monday. The first came from Lominko Resources Ltd. [NEX: LMR.H]: it announces Lominko's intention to move to Tier 2 of the Venture Exchange through it optioning a new set of claims called the Nak property. They abut Lominko's presently-held claims of the Joss'alun property, which Lomiko optioned from Copper Ridge Explorations Inc. last year. The Nak claims have been optioned from Imperial Metals Corp. Both of these properties are being combined into a single property, referred to as the Big Nak property. These two options, which the news release explains the terms of, have been deemed by management to be sufficient for Lomiko to apply for graduation to the Tier 2. To meet the expenditures required by the terms of the options over the next year, Lomiko has completed a private placement of one million common shares and another million flow-through shares for total gross proceeds of $500,000. The company has deemed the proceeds sufficient to enable "the company to have adequate funds required to advance." LMR.H traded only in odd lot sizes on Monday; its last close, made on October 19th, put the stock at 37 cents/share.

The second release came from Warwick Comminucations Inc. [NEX: WWK.H]; it announces that Warwick has been listed on the Canadian Trading and Quotations Systems Inc. as of October 23rd. Warwick has also applied for de-listing from the NEX Board. The rest of the news release states that, as of the same day, AAA Power Inc. has bought about 81% of the common shares of Warwick. It also announces the new top-management team at Warwick: Jeremy White, appointed as president, CEO and CFO as well as a director; James (Jim) Williamson, appointed as executive vice-president; and, Nicholas (Nick) Pitt, appointed vice-president of operations. Warwick remains suspended on the NEX.

The third and final repease through Canjex is from Pacific Wildcat Resources Corp. [NEX: PAW.H]: it contains a clarification to an earlier release, issued October 12th, that announces Pacific Wildcat's takeover of a company that owns certain tantulum claims in Mozambique. The clarification pertains to the past employment history of Rakesh Garach, one of the new directors of Pacific Wildcat. It says that he "was the former chief operating officer of Deutsche Bank in South Africa. Prior to that appointment, he was a partner with Ernst and Young in South Africa." The original report said that was still the COO of Deutsche Bank. PAW.H is still halted; its last close, which put PAW.H's price at 21 cents/share, was on Septenber the 27th.

In addition to the above items, there were also SEDAR-filed financial statements announced on Monday:

• Golden Hat Resources Inc. has filed its audited annual financial statements for FY 2007 with accompanying M D & A.
• GTO Resources Inc. has also filed its interim unaudited quarterlies with accompanying M D & A
• Cierra Pacific Ventures Inc. has filed its audited annual financial statements for FY 2007 with accompanying M D & A.
• Gold Star Resources Corp. has filed its audited annual financial statements for FY 2007 with accompanying M D & A.

[Note: There were three other NEX companies that filed reports through SEDAR on Monday, but due to time constraints their summarization on this blog will be postponed for Tuesday's report. Those three companies were Agrotech Greenhouses Inc. (interim unaudited quarterly report), Focus Ventures Ltd. (interim unaudited quarterly) and Themac Resources Group Ltd. (annual audited report.)]

To read about the highlighted NEX stocks for Monday, you can go here.

Gold Star Resources Corp. Files Audited Annual Report With SEDAR

Gold Star Resources Corp. [NEX: GXX.H] has filed its audited annual financial statements with SEDAR for fiscal year 2007, ended June 30th, along with the accompanying Management Discussion and Analysis. The financials [PDF file] got an unqualified opinion from the auditors.

Cash decreased from $3,028 as of June 30/06, to $426 as of June 30/07. GST receivables, though, increased by $5,037 in the same time period to $7,173. As a result, current assets increased from $5,164 as of the end of FY '06 to $7,599 as of the end of FY '07. Current liabilities decreased from $147,769 to $58,669, due to a $29,792 decrease in accounts payable & accrued liabilities and a $59,308 decrease in amounts due to related parties. Consequently, the working capital deficiency shrunk from $142,605 as of the end of FY '06 to $51,070 as of the end of FY '07. Book value increased from -2.72 cents/share to -0.859 cents/share. The decreases in current liabilities and increase in book value were caused by $378,250 worth of proceeds from the private-placement issuance of 2,225,000 common shares in FY '07, as explained in Note 4 (b). Note 4(c) discloses that there are currently 2,225,000 warrants outstanding from that placement, with exercise price of 23 cents per warrant and expiry date of March 6, 2008.

Net loss before other items for FY '07 increased to $279,904 from $204,221 in FY '06. Most of the expenses categories increased in FY '07: accounting and legal expense increased $10,021 to $44,127; interest and bank charges increased by $69 to $484; consulting fees increased to $41,500 by the same amount; general exploration expense increased from nil to $39,789; and, office, rent and telephone expenses increased by $12,361 to $40,466. Investor communication, trade shows and web site expenses decreased by $129 to $4,473; transfer agent and regulatory fees decreased by $1,632 to $10,174; and, write-off of mineral property expenditures decreased by $26,296 to $68,891. Net loss increased from 3.90 cents/share to 4.82 cents/share. As explained in Note 3, the addition of the mineral property expenditues in FYs '07 and '06 was due to the abandonment of two options on two different properties, one during each fiscal year. As of June 30th of this year, Gold Star has $1,103,044 of non-capital tax losses, $74,186 of which expire in 2008, and unclaimed resource deductions in the amount of $1,076,171.

The accompanying M D & A [PDF file] says that three properties have been abandoned by Gold Star since 2004, and that the company is "desirous of finding a mineral project and has been actively looking at several properties... but there are certain conditions to meet. Any project the Company wishes to acquire must have a 43-101 report to comply with regulatory requirements. In addition, the Company needs to engage personnel with mineral exploration experience to assess, monitor and manage the projects." It also discloses that the consulting fees and exploration expenses were paid to find a property that meets these conditions, and that the company had had no revenue since, most recently, as of the beginning of FY 2006. GXX.H closed Monday at 19 cents/share, up 1 cent/share since Friday's close.

Cierra Pacific Ventures Inc. Files Audited Annual Report With SEDAR

Cierra Pacific Ventures Inc. [NEX: CIZ.H] has filed its audited annual financial statements with SEDAR for fiscal year 2007, ended June 30th, along with the accompanying Management Discussion and Analysis. The financials [PDF file] got an unqualified opinion from the auditors.

Cash held by Cierra Pacific dropped from $1,673 as of June 30th, 2006 to $55 as of June 30th, 2007. This loss was mitigated somewhat by an increase in a deposit from $1,250 to $1,325 in that same period. Current assets dropped from $3,249 to $1,548. Current liabilities, on the other hand, increased from $363,047 to $524,962. The largest dollar increase was in the due-to-related-parties category, which went up by $110,316 to $320,044 as of the end of FY '07. Consequently, the working capital deficit increased from $360,281 to $523,414. Book value decreased from -5.04 cents/share as of the end of FY '06 to -7.33 cents/share as of the end of FY '07. There were no investment activities listed in the statement of cash flows for either fiscal year; the only financing activities were the borrowing of $11,035 in FY '07 as compared with the borrowing of $28,646 in FY '06. Cash used in operating activities decreased from $27,405 in FY '06 to $12,653 in FY '07; both amounts were only a small fraction of the net losses for the year before any extraordinary items ($126,828 in FY '06 and $163,616 in FY '07.)

As just indicated, expenses increased by $36,788 from FY '06 to FY '07, as caused by: a $4,148 increase in interest and bank charges; a $742 increase in shareholder-information expenses; a $11,585 increase in office and administrative expenses; a $20,400 increase in professional fees; and, a $1,060 increase in transfer agent fees. Filing fees decreased by $1,147 in the same time period; management fees (of $30,000) and rent (of $24,000) stayed constant. Note 4 discloses that management, office & administration, and professional fees were all accrued and are all due to related parties. According to Note 6, Cierra currently has $721,653 in non-capital tax losses, of which $65,253 expire in 2008, and about $5,191,023 in capital losses. Neither of these items are vendible.

The accompanying M D & A [PDF file] discloses, as does note 4 of the financials, that $145,565 has been borrowed from "a company related to a director of the Company." The amount owing was $134,530 in FY '06. "This loan [bears] interest at 12% per annum, unsecured, with no fixed terms of repayment. Accrued interest to date is $46,444." It also explains that bank charges are negligible compared to interest expense in the interest-and-bank-charges account, and further discloses that the part of the net loss incurred in the fourth quarter of FY '07 was $64,045. CIZ.H closed Monday at 22 cents/share, up 2 cents/share from the previous close set on September 19th.

GTO Resources Inc. Files Interim, Unaudited Statement With SEDAR

GTO Resources Inc. [NEX: GTR.H] has filed interim, unaudited financial statements for the second quarter of FY '07, ended August 31st, along with the accompanying Management Discussion and Analysis. According to the financials [PDF file], cash and cash equivalents increased from $268,368 as of the end of FY '06 (ended Feb. 28th) to $965,644 as of the end of 2Q '07. Working capital increased from $465,842 as of the former date (as fortified by a $200,000 term deposit that was liquidated later) to $962,548. The only item in current liabilities, accounts payable, fell from $12,177 to $8,654. The increase in cash, as well as an increase in the book value from 7.70 cents/share as of the former date to 12.0 cents/share as of the latter date, is due to $514,150 worth of proceeds from the exerise of warrants in 1Q '07. Other than the purchase and redemption of the term deposit, there were no investment activities since the first quarter of FY '06. (Unusually, the proceeds from the redemption of the term deposit was $20,000 less than the money invested in it, according to the statement of cash flows.)

Expenses for 2Q '07 dropped slightly from expenses in 2Q '06. This drop was due to a $1,268 decrease in shareholder information expenses, to $78 for 2Q '07. Professional fees increased by $1,056 to $2,055, and office & miscellaneous expenses increased slightly. Transfer agent, listing and filing fees dropped by $303 to $6,148

The only income GTO had in the quarter was interest income, which increased from $2,032 in 2Q '06 to $9,614 in 2Q '07. As a result, the net loss shrunk from $14,506, or 0.289 cents/share, to $6,443, or 0.0802 cents/share. Net loss for the first six months of 2007 from the first six months of FY 2006 shrunk by $10,406, to $17,444 or 0.219 cents/share. The drop in cash used in operating activities for the second quarter was slighter, from $14,380 in 2Q '06 to $10,351 in 2Q '07. In note 5, Related Party Transactions, part (a) discloses: "Pursuant to an agreement dated December 31, 2004 the Company pays Quest Management Corp. ('Quest'), a company related by virtue of an officer and director in common, a fee of $2,500 per month plus expenses for office space, supplies, and accounting services. The Company paid $15,000 for the six months ending August 31, 2007." The other disclosure is of $2,669 due to related parties, which was put in accounts payable and accrued liabilities.

The accompanying M D & A [PDF file] notes that "[t]he Company wrote off all mineral property expenditures during the fiscal year ending February 28, 2004 and has not conducted any mineral property exploration work since the fiscal year ended February 28, 2000." Later noted is, "[t]he Company is a 15.99% participant in an early stage exploration joint venture" which is unidentified by name. GTR.H's last close was on October 17th, at 65 cents/share.

Golden Hat Resources Inc. Files Audited Annual Report With SEDAR

Golden Hat Resources Inc. [NEX: GHA.H] has filed its audited annual financial statements with SEDAR for fiscal year 2007, ended June 30th, along with the accompanying Management Discussion and Analysis. The financials [PDF file] got an unqualified opinion from the auditors.

Golden Hat's cash increased from $16,592 as of the end of FY '06 (also ended June 30th) to $55,610 as of the end of FY '07. Current assets increased from $22,738 to $61,757 in the same time period. Current liabilities shrunk from $154,997 to $139,723, narrowing the working-capital deficit from $132,259 to $77,966. Book value increased from -0.0831 cents/share to +0.204 cents/share due to the issuance of common shares.

Net loss for FY '07 increased from $106,874 to $154,040 despite a shrinking in expenses from $175,436 to $124,463. The difference is explained in the other-items category: FY '06 saw a reduction of the net loss by $68,562 due to the write-off of accounts payable, because the statutory period for their collection has passed and (as note 10 further explains) "management have determined that they will not be paid." There were no analagous reductions in FY '07; instead, the loss increased due to a $29,577 write-off of the value of a resource property - the Nova Scotia Gold property according to Note 9. As far as the expense items were concerned, all items shrunk except for management fees of $30,000, which remained constant, and Rent & Utilities, which increased slightly. Net loss, though, increased from 0.448 cents/share in FY '06 to 0.461 cents/share in FY '07. A reported increase of 9,576,869 in the weighted average of common shares outstanding explains why the reported per-share loss increased far less than the dollar loss from FY '06 to FY '07.

The accompanying M D & A [PDF file] contains little other than a brief description of the issues facing Golden Hat, as well as a brief description of the Telegraph Creek project which it currently owns plus a summary table of its results for FYs '06 and '07. GHA.H closed at 8 cents/share on Monday, up 0.5 cents/share from Friday's close.

Highlighted NEX Stocks For October 29th

Twenty-six NEX stocks traded on Monday. Of these, 10 advanced, 4 declined and 12 remained unchanged. Despite the relative paucity of issues traded, the number of trades was unusually large: 177 of them. The reason for the disjoint is explained by the trading activity of the top trader in terms of raw volume: Trilogy Metals Inc. [NEX: TRI.H], with 753,265 shares traded. According to the TSX Venture closing summary, the top trader in terms of value of shares traded for Monday was also Trilogy Metals. It was also first in terms of the number of shares traded, tops in the percent advancer, and first on the top ten daily-turnover list, found at the bottom. Trilogy was also far in first for each category. It was the first NEX stock in months to trade a solid six figures' worth of shares in the trading day - to be more specific, more than half a million dollars' worth. Quite evidently it was the stock of the day - and it accomplished all this in four hours' worth of trading, as it was subject to a trading halt as of the start of Monday's trading. There was only one news item to account for this explosion, and it was summarized in Friday's News Releases From NEX Companies (fourth paragraph): Trilogy has agreed to purchase all the shares of NWest Energy Inc. [The full news release that explains the deal, and its ramificiations, is here.] As is often the case, the chart of Trilogy gave little or no warning that such an explosion was about to come, except perhaps for a too-quiet lull in the change of its price before Monday's rocket-up.

Three NEX stocks traded more than ten times on Monday. As explained above, the issue that traded the most numerously, by far, was Trilogy Metals, with 81 trades during the time it wasn't halted. There were four trades waiting right at the dot of noon ET when the trading halt was lifted. Those four all went at 71 cents/share, making Trilogy a 29 cent/share gainer on the day right at the start of its trading. The fifth trade also went at 71 cents/share, but the sixth went at 70 cents/share. The next three trades went at 65 cents/share. In order to get a sense of how quickly Trilogy started trading, the last of those 65 cent'ers went as of 12:01:51 PM ET, or fewer than two minutes after the halt was lifted. That last 65 cent'er was the ninth trade of the day.

The next six went for 66 cents/share, with the last of those, the fifteenth, going at 12:03:53. The volume of that single trade was close to 150,000; the total volume of all fifteen trades, all of which went within four minutes of each other, was 291,000 shares.

The sixteenth and seventeenth went for 70 and 71 cents/share respectively, while the next two went at 67 cents/share. The two after that went at 66 cents/share, but the price of TRI.H recovered above 70 cents/share, to stay, as of about 12:05:20 PM ET. The next six trades, all occurring within twenty seconds of each other, all went at 70 cents/share. The one after that, the twenty-eighth, went at 75 cents/share. After the twenty-eighth, which went ten seconds after 12:07 PM ET, the price of Trilogy never went below the opening price of 71 cents/share again.

[This reminds me of an old trader's joke. ABC has gone through the roof, and a trader was asking a broker if she was going to shoot any orders for ABC over his way. She shook her head, explaining that she was waiting for the secondary reaction. "Oh, you want the secondary reaction?" the trader asked. After getting a confirmatory nod from the broker, he went through the papers on his messy desk, pulled out a sheet of paper, circled some of the numbers on the sheet, and handed it over to her.

"Here, you've got the secondary reaction you're looking for. Took place between 10 and 10:05 this morning."]

After retracting slightly to 74 cents/share, Trilogy had gotten back up to 75 cents/share on the thirtieth trade of the day. 80 cents/share was reached on a board-lot-sized trade as of 12:10:18 AM ET, on the thirty-eighth trade. After reaching that level, the surge basically stopped, although trading continued with enthusiasm up until 1:50 PM ET. In that time period, the price of TRI.H hovered between 78 and 85 cents/share. By the time 2 PM ET rolled around, seventy-two trades in Trilogy had been made; there were only to be nine more during the rest of the trading day. Of all the 81 trades, two were odd-lot-sized. The first went at 12:09:12 PM ET at 82 cents/share. The second, which was also the last trade of the day, went at 3:58:08 PM ET at 88 cents/share, the highest price for TRI.H if odd lots are counted as well as board lots. Trilogy closed at 83 cents/share, up 41 cents/share on the day. For an overall perspective on how Trilogy traded Monday, here's a quick table showing price traded, share volume and value of shares at that price with colon and semicolon separators:


-65 cents: 20,000 shares; $13,000 worth
-66 cents: 329,000 shares; $217,140 worth
-67 cents: 35,000 shares; $23,450 worth
-70 cents: 68,000 shares; $47,600 worth
-71 cents: 34,000 shares; $24,140 worth
-74 cents: 5,000 shares; $3,700 worth
-75 cents: 20,000 shares; $15,000 worth
-76 cents: 4,500 shares; $3,420 worth
-78 cents: 5,000 shares: $3,900 worth
-79 cents: 7,000 shares; $5,530 worth
-80 cents: 120,000 shares; $96,000 worth
-81 cents: 42,000 shares;$ 34,020 worth
-82 cents: 8,750 shares; $7,175 worth
-83 cents: 30,000 shares; $24,900 worth [Closing price.]
-84 cents: 1,000 shares; $840 worth
-85 cents: 24,000 shares; $20400 worth
-88 cents: 115 shares; $101.20 worth.


As noted above, there were two other NEX stocks that traded more than 10 times on Monday, overshadowed though they were by Trilogy. Second-most numerous in terms of number of trades was Rocher Deboule, with a relatively sparse 13 trades on the day. The first five board lots went at 46 cents/share, with an odd lot (the second trade of the day) of 449 shares going at 44 cents/share between them. The last four of those five board-lot-sized traded, of 5,000, 4,000, 10,000 and 6,000 shares respectively, were bought through Canaccord and seemed to be a bought block of 25,000 shares. The seventh trade of the day, of 5,000 shares as of about 1:35 PM ET, went at 46.5 cents/share; the four following it pushed the price up to 47 cents/share through the first two and 48 cents/share through the last two. Of those four, the last three were bought through E-Trade, suggesting a bought block composed of the 2,500 shares their volumes summed up to. The last two trades, of 4,000 and 1,000 shares, were also bought through Canaccord, at the same price as those four which were too. They brought Rocher to its closing price of 46 cents/share, leaving RD.H unchanged since last Friday's close on daily volume of 41,449 shares.

The final stock to trade more than 10 times on Monday was Moneta Resources Inc. [NEX: MOT.H], with 11 trades. There seemed to be three sold blocks, of 549, 15,000 and 37,000 shares, comprising the first two, the third and fourth, and the last seven trades, as sold through National Bank, Desjardins and an anonymous institution respectively. Despite the preponderance of presumed blocks on the sell side, especially the 37,000-share one, the price of Moneta crept up during the day before a 4 cent/share leap on the last trade of 2,000 shares. There also seemed to be two bought blocks, comprising the fourth through seventh and ninth through tenth trades, of 23,000 and 10,000 shares respectively, which may explain the buying pressure that overweighed any selling pressure by the presumed sold blocks. The last trade of 2,000 shares was bought through the same institution that was the buy-side financial institution for the 23,000-share trade cluster: Canaccord. So, it is possible that this last trade completed a bought block of 25,000 shares. The 10,000 shares mentioned above were bought through TD Securities. Moneta closed at 21 cents/share, up 5 cents/share since its last close on last Tuesday, on 52,549 shares daily volume.

The top percentage gainer in Monday's trading was the oft-mentioned-above Trilogy Metals, which closed at 83 cents/share for a gain of 41 cents/share, or 96.72%, on the day. The top percentage decliner for Monday was Arcland Resources Inc. [NEX: ADR.H], which closed at 22.5 cents/share for a decline of 7.5 cents/share or 25%. One board-lot-sized trade in Arcland did it: 500 shares at the closing price. The other trade was odd-lot-sized and went at 20.5 cents/share. Both trades went as of the same time, about 10:57 AM ET, and both were sold through E-Trade, suggesting a sold block pushed the price down in a thin market for ADR.H. Those two trades combined made up the daily volume of 566 shares in Arcland.

Finally, here is the above-mentioned list of yesterday's top ten traders, as measured by % of total outstanding shares or daily turnover (all prices in per-share terms):

1. Trilogy Metals Inc. [NEX: TRI.H], closed at 83 cents for a gain of 41 cents - 15.4% of total shares outstanding;
2. International LMM Ventures Corp. [NEX: LMM.H], closed at 50 cents for a gain of 4.5 cents - 0.467% of TSO;
3. Golden Hat Resources Inc. [NEX: GHA.H], closed at 8 cents for a gain of 0.5 cents - 0.449% of TSO;
4. Cobre Exploration Corp. [NEX: CXV.H], closed at 13 cents for a gain of 1 cent - 0.359% of TSO;
5. Gold Star Resources Corp. [NEX: GXX.H], closed at 19 cents for a gain of 1 cent - 0.294% of TSO;
6. Moneta Resources Inc. [NEX: MOT.H], closed at 21 cents for a gain of 5 cents - 0.158% of TSO;
7. Rocher Deboule Minerals Corp. [NEX: RD.H], closed at 46 cents unchanged - 0.130% of TSO;
8. Global Tree Technologies Inc. [NEX: GTT.H], closed at 2 cents for a gain of 0.5 cents - 0.105% of TSO;
9. Challenger Development Corp. [NEX: CDQ.H], closed at 40 cents for a gain of 4 cents - 0.0822% of TSO;
10. Avigo Resources Corp. [NEX: TMX.H], closed at 50 cents for a loss of 3 cents - 0.0851% of TSO.

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

NEX Report for October 26, 2007

On Friday, the Barrel's Bottom Composite Index for the NEX closed at 88.04, down 0.05 points or 0.0568% from its previous close of 88.09. The first minute of trading after market's open saw the BBC Index move hardly at all. A 0.5 cent/share opening gain in Champlain Resources Inc. [NEX: CPL.H] was more than enough to counterbalance a 1 cent/share opening decline in ITI World Investment Group Inc. class 'A' [NEX: IWI.H]. Consequently, the BBCI was pushed up to 88.08. The index stayed above 88 until 10:12 AM ET, when a 2.5 cent/share drop in the price of Gold Star Resources Corp. [NEX: GXX.H] put the BBCI down to 87.98 as of the next minute. A 1 cent/share drop in the price of Silvio Ventures Inc. [NEX: SIV.H] as of about 10:14 AM ET put the index down a little more, to 87.94. A temporary return to above 88 was caused by a 2 cent/share opening gain in the price of Rocher Deboule Minerals Corp. [NEX: RD.H], by 10:22 AM, but 88 was descended below as of 10:30 AM ET. The index stayed between 87.9 and 88 for the rest of the morning.

At 12:02 PM ET, a 1 cent/share interday rise in the price of Mazarin Inc. [NEX: MAZ.H] brought the index back above 88. This gain erased an earlier 1 cent/share decline that put the index below 88 at 10:30. The high of the day was reached at 12:24 PM ET, due to a 2 cent/share opening rise in Toba Industries Ltd. [NEX: TBG.H]: Toba put the BBCI at 88.31. This high lasted only one minute; a 1 cent/share opening decline in the price of Tapango Resources Ltd. [NEX: TPA.H] put the index a little below 88.2. This turned to slightly below 88.2 because of a 1.5 cent/share interday rise in Magnate Ventures Inc. [NEX: MGV.H]. This leap put Magnate at a gain of 5 cents/share, and the BBCI at 88.19, as of 12:42 PM ET.

88 was broken through on the downside again at 1:43 PM ET, due to the erasure of the gain in Toba. Two minutes later, a 2 cent/share drop in the price of Tapango put the BBCI at the day's low of 87.67. After partially recovering to above 87.8 at 2:10 PM due to a 5 cent/share rise in the price of Quartz Mountain Resources Ltd. [NEX: QZM.H], the BBCI ranged between 87.75 and 87.85 until 3:22 PM ET.

At that minute, 88 was vaulted over again, thanks to an 8 cent/share gain in Guildhall Minerals [NEX: GDM.H] with respect to its previous close. The index hung around 88 for the rest of the day, rising gently to reach its closing value of 88.04.

Here are the hourly values for the Barrel's Bottom Composite Index, rounded to the nearest hundredth of a point:

• 10 AM ET: 88.08
• 11 AM ET: 87.96
• 12 PM ET: 87.97
• 1 PM ET: 88.19
• 2 PM ET: 87.67
• 3 PM ET: 87.85
• 4 PM ET/Close: 88.04

This is the first part of the daily NEX report. The second part covers NEX stocks that have sent out news releases during October 26th and the third part covers NEX stocks of note for that day.


[An earlier version of this part of the report has been posted at the Barrel's Bottom Blog over at Stockhouse.]


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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News Releases From NEX Companies For October 26th

There was one release from a NEX company that was picked up by Marketwire on Friday: it came from Moneta Resources Inc. Moneta announced the signing of a Letter of Intent to acquire an option for an 80% interest in the Geita Gold Property in Tanzania, currently owned by Geo Can Resources Ltd. In order to exercise that option, called the First Option in the news release, "Moneta must make cash payments of US$4,000,000 and issue 6,000,000 shares over a period of four years, and incur an aggregate of US$5,000,000 in exploration expenditures on the Geita Gold Property over a period of five years, including a cash payment of $500,000 (of which US$100,000 has been paid), the issuance of 1,000,000 shares and US$500,000 in expenditures during the first year (of which $50,000 has been advanced to date)." The other two options are for 10% each of the remaining 20% interest in the property. Geo-Can will retain a 2% net smelter royalty, which Moneta can buy for 2.5 million US dollars per percent, payable over four years. In addition to other details, the release also conains a capsule description of the mineralization of the property and explains that the $50,000 sent over so far will be used for exploration expenses. Moneta was halted before this release was disseminated, and resumed trading after it was sent out: the halt lasted from the start of trading to 10:30 AM PT, or 1:30 PM ET. MOT.H didn't trade at all on Friday; it last traded on Wednesday, closing at 16 cents/share on that day.

The notices of Moneta's halt and resumption were two of the four bulletins from NEX companies that were at the bottom of Friday's TSX Venture Daily Bulletins. The others were from an already-established NEX company and a new listing. The former bulletin announces the aceptance for filing of documentation for an already-announced $90,000 private placement of shares in Tri-River Ventures [NEX: TVR.H]. This placement consists of 400,000 units, at a price of 22.5 cents/unit. Each unit contains one common share and a purchase warrant, with exercise price of 45 cents/share and life of 1 year. There were nine placees, two of which were insiders. One of them subscribed for 50,000 shares and the other for 40,000 shares. Tri-River last traded on Wednesday, and closed at 30 cents/share on that day.

The other bulletin is from new NEX company Waveform.com Inc. It announces the move and the change of its symbol to WAF.H, as well as a resumption in trading of its stock as of Monday, October 29th. Canjex Publishing has a webbed copy of the Tri-River bulletin here, and has split the Waveform bulletin into two: the announcement of the move to the NEX and the notice of trading resumption. Wavefire.com shares last traded on October 22nd, and closed at 20 cents/share on that day.

One news release was sent out exclusively through Canjex on Friday, although it contains two items. It's from Trilogy Metals Inc. [NEX: TRI.H], and it announces Trilogy entering into an agreement to purchase all of the shares of NWest Energy Inc. in a one-for-one swap of Trilogy shares for NWest shares. This will necessitate the issuance of 49,531,250 shares of TRI.H, which will be subject to escrow according to regulations. NWest holds four oil-and-gas exploration licenses, for 659,880 hectares' or 1,630,599 acres' worth of offshore area for all four. They're located off eastern Newfoundland. It is expected that this transaction will qualify Trilogy to move to Tier 2 of the Venture Exchange, and Trilogy itself expects to change its name. The new additions from NWest to top management and the board are also identified, with capsule biographies for each: Francois Gauthier, the new president and CEO (he's also a new director); Wade Dawe, a new director; Patrick Laracy, new director and corporate secretary; and, Carl Sheppard, new director and CFO. The second item announces that NWest is trying to raise up to $20 million for a seismic exploration of 11 promising spots in the properties, on the basis of an encouraging report on them by Sproule Associates. (In addition to that technical review, Sproule has also done the valuation of them.) That part of the release notes that "[n]o wells have been drilled on the properties covered by the exploration licences and there are no known reserves." Trilogy last traded on Wednesday, and closed at 42 cents/share on that day.

In addition to the above items, there were also SEDAR-filed financial statements announced on Friday:

• Benem Ventures Inc. has filed its annual report for FY '07 with accompanying M D & A.
• IDG Holdings Inc. has also filed its annual report for FY '07 accompanying M D & A, as well as interim unaudited financial statements for the first quarter of FY '08.

To read about the highlighted NEX stocks for Friday, you can go here.

IDG Holdings Inc. Files Audited Annual Report And Interim Unaudited Quarterly Report With SEDAR

IDG Holdings Inc. [NEX: IDH.H] has filed its annual report for fiscal year 2007, ended June 30th 2007 [PDF file], which has also been split into the financial statements for that fiscal year [PDF file] and the accompanying Management Discussion and Analysis [PDF file]. The financials received an unqualified opinion from the auditors.

Cash shrunk quite a bit from FY '06 to FY '07 - specifically, from $355,503 to $20,399. Short-term investments, though, ballooned from $140,070 in FY '06 to $671,879 in FY '07; additionally, a loan receivable of $109,000 was added to current assets. Despite those two increases, total current assets shrunk from $1,119,057 to $826,305 because of the disappearance of accounts receivable and inventories from the balance sheet. Because current liabilities decreased from $155,865 to $21,441, working capital decreased only $205,058 from FY '06's figure of $1,009,922 to FY '07's $804,864. Book value decreased from 10.4 cents/share to 7.88 cents/share.

Since IDG was actively in business during FY 2006, it reported income and expenses in the regular way; that format was used for FY '07's results even though there was no business activity during that time. For FY '07, the only income received was $23,932 in interest income. Operating expenses for the year came to $96,995, resulting in a net loss before interest, taxes, depreciation and amortization of $73,063.

With ITDA added, the net loss shrunk to $39,814. This occurred because of a tax recovery in the amount of $25,027 and the accreted interest received "on loan advanced on sale of Integral Designs" of $11,000. $97,155 worth of the shrinkage of the book value resulted from a dividend paid out.

The cash flow statement shows a cash loss of $48,036 for FY '07, and total cash used in operating activities of $86,088. Investing activities, as is usual for this category in general, used up $63,234 in cash. This use was due to significantly more than the $408,575 cash component of the sale price of Integral Designs, plus the $60,000 in loan payments received, being plowed into short-term investments, as noted above. The financing part of the cash flow statement showed a decrease of $98,240 in cash, almost all of which went to the dividend payment. The other $1,085 was spent by IDG on its own shares. Also noted in the cash-flow statement is the non-cash component of the sale proceeds of Integrated Designs, which was $430,060. $270,000 of it was in the form of a loan advanced; $160,060 was in the form of shares of IDG handed over to the company and cancelled, as explained in Note 13. Note 5, "Related Party Transactions," notes the Integrated Designs was sold to a (now-former) director of IDG Holdings. The accompanying M D & A explains that the price was verifiably fair: "The transaction was approved by all of the non-related directors, and by shareholders, and accepted by the TSX Venture Exchange as the fair market value." It also notes that $20,000 of the expenses were "in connection with the preparation for, negotiation and closing of the sale of its former business."

The interim and unaudited report for the first quarter of FY '08 has the M D & A in front of the financial statements [PDF file] with a separate copy of the M D & A filed as well [PDF file]. According to the financial statements, cash increased by $16,805 in the first quarter, but loans receivable decreased by $30,000. Increases in two other categories helped shrink the decline in current assets to $7,104. A shrinkage of current liabilities in the amount of $7,941 resulted in a slight increase in working capital, to $886,701.

IDG has managed to be one of the few NEX companies that has reported net income, as opposed to a net loss, in a quarter. Investment income of $7,404 more than covered the quarterly expenses of $6,567, leaving net income in the amount of $837. As a result, book value increased slightly. The accompanying M D & A states, under Related-Party Transactions, that "[c]osts for accounting and administrative services reported in the financial statements comprise amounts paid to director Glynn Jones and his wife for statutory record-keeping and financial reporting for the company at less cost than available elsewhere." IDH.H last traded on Wednesday, and closed at 24.5 cents/share, its 52-week high.

Benem Ventures Inc. Files Audited Statement With SEDAR

Benem Ventures Inc. has filed its audited annual report with SEDAR; the auditors gave the financial statements an unqualified opinion. According to those statements [PDF file], cash and cash equivalents increased from $2,201 as of the end of fiscal year 2006, which ended June 30th, to $17,351 as of the end of fiscal year 2007, also ended June 30th. Short-term investments, on the other hand, shrunk from $325,000 as of June 30/07 to $150,000. Prepaid expenses decreased from $5,000 to $1,250 in the same time period, while accounts receivable hardly changed. As a result, current assets declined from $339,292 to $175,677. Because current liabilities increased from $12,836 to $15,015, working capital shrunk from $326,456 as of June 30/07 to $160,662 as of one year later. Book value shrunk from $326,456, or 8.48 cents/share, to $160,662, or 3.74 cents/share, in that same time period.

The statement of expenses shows a widening of Benem's annual loss from $124,692, or 3.24 cents/share, to $180,794, or 4.20 cents/share, from FY '06 to FY'07. $45,000 of the loss was accounted for by sponsorship fees in FY '07, which were nil in FY '06. Absent that item, the loss only increased slightly. Office expenses (comprising rent, administration and "office") went from $39,083 to $64,903; the two items comprising it, as well as consulting fees, were the only ones to increase significantly from FY '06 to FY '07. The two expense items that decreased significantly were travel and promotion expenses, which shrunk from $23,581 in FY '06 to $16,282 in FY '07, and filing & transfer agent fees, which shrunk from $18,652 to $8,321. The statement of cash flows pinpoints the decrease in short-term investments as the main source of cash for the year, although $15,000 worth of proceeds in share subscriptions were received during FY '07. Note 3(c) explains these receipts as resulting from the exercise of stock options, of which there are none left as shown by note 3(d). The only source of income, interest income, shrunk from $10,473 to $8,598 even though interest received (as cash) increased from $7,299 to $12,312. The only significant related-party transactions listed in note 4 of the financials is $35,746 in legal expenses, as compared with $38,427 in FY '06, and $5,300 in consulting fees to a director as compared with nil in FY '06. "Included in accounts payable is $6,500 (2006 - $4,000) for legal fees due to a firm that is associated with a former director of the Company," Andrew Walker. The last two notes explain that the company is currently between Qualifying Transactions.

The M D & A [PDF file] explains that the $45,000 sponsorship fee was paid to Integral Wealth Securities Limited because the TSX Venture refused to grant an exemption to the sponsorship requirement for the previous Qualifying Transaction, which fell through at the end of August of this year. Benem is currently trying to acquire some mineral claims owned by Velocity Resources Canada Ltd. in exchange for $75,000 and 12 million Benem shares, plus a commitment to raise $2 million in a subsequent private placement. Benem shares have been halted ever since the now-ended earlier Qualifying Transaction was about to be announced. BNM.H last traded on August 14th, 2006; it closed at 42 cents/share on that day.

Highlighted NEX Stocks For October 26th

Thirty-four NEX stocks traded on Friday. Of these, 7 advanced, 7 declined and 19 remained unchanged. There were 104 trades. The top trader in terms of raw volume was Golden Hat Resources Inc. [NEX: GHA.H], with 172,000 shares traded. Golden Hat traded eight times on Friday: seven of those went at 7.5 cents/share and one, the second, went at 7 cents/share. That trade was for 2,000 shares. There seemed to be one bought block, comprising the third through sixth trades, of 70,000 shares of GHA.H and two sold blocks of 7,000 and 100,000 shares: those comprised the first two and the last three trades respectively. Golden Hat closed at 7.5 cents/share, unchanged since Thursday's close.

According to the TSX Venture closing summary, the top trader in terms of value of shares traded for Friday was Rocher Deboule Minerals Corp. [NEX: RD.H]. All four trades in RD.H went at the same price, 46 cents/share: the volumes of them were 10,000, 20,000, 10,000 and 10,000 shares. They all had the same buy-side financial institution, Canaccord, and may have formed a 50,000-share bought block, although the time between each trade indicates that they were not. The last two trades, made at exactly the same time, both had TD Securities as the sell-side financial institution and may have been a sold block of 20,000 shares that was called forth by the day's demand. Golden Hat placed fourth on the top ten daily-turnover list, found below; Rocher placed tenth.

One NEX stock traded more than ten times on Friday. It was an issue that's usually found in this category: Silvio Ventures Inc. [NEX: SIV.H], with thirteen trades. As is also usual for Silvio, the large majority of its trades were odd-lot-sized - for Friday, all but one. The only board-lot-sized trade, the fourth of the day, went at 55 cents/share. The others went for 52 cents/share: they were all bought through PI Financial. That single board-lot'er set the closing price for SIV.H, putting it down 2 cents/share with respect to Thursday's close. Daily volume was 2,513 shares.

The top percentage gainer in Friday's trading was Magnate Ventures Inc. [NEX: MGV.H], which closed at 35 cents/share for a gain of 9.5 cents/share, or 37.26%, on the day. There were six trades in Magnate, with prices ascending from 25 cents/share to the day's close of 35 cents/share. No trades were below the previous trade's price, except for the first one which was 0.5 cents/share below the previous close as set on October 22nd. Four out of the other five trades were at prices higher than the previous one. Interestingly enough, there seemed to be only one bought block of 3,000 shares, comprising the second and third trades. Those trades, of 500 and 2,500 shares, went for 27 cents/share and 28.5 cents/share respectively. The last three trades, of 3,500, 15,000 and 2,500 shares at 28.5, 30 and 35 cents/share respectively, were definitely independent of each other. The first three trades were made in the morning, and the rest went during the afternoon. The last one, which set the closing price, went as of 3:35 PM ET - more than three hours after the fifth one went. Total daily volume for MGV.H was 24,500 shares. Magnate took first place in the top-ten daily-turnover list, found just below.

The top percentage decliner for Friday was Mazarin Inc. [NEX: MAZ.H], which closed at 6 cents/share for a decline of 1 cent/share or 14.29%. There were nine trades in MAZ.H, three of which were odd-lot-sized; all three of those went at 4 cents/share. Of the six remaining board-lot-sized trades, four went for 6 cents/share and two went for 7 cents/share. Those two, though, were the largest-volume trades: 30,000 and 20,000 shares, as of 12:01 and 12:33 PM ET respectively. They seemed to have formed a 50,000 share bought block. On the sell side, there were no discernable blocks. Total daily volume for MAZ.H was 56,450 shares. As noted above, 50,000 of them went at 7 cents/share. 5,000 shares went at the closing price of 6 cents/share, and the remaining 1,450 shares, as also noted above, went at 4 cents/share.

Here is the above-mentioned list of yesterday's top ten traders, as measured by % of total outstanding shares or daily turnover (all prices in per-share terms):

1. Magnate Ventures Inc. [NEX: MGV.H], closed at 35 cents for a gain of 9.5 cents - 1.13% of total shares outstanding;
2. Rose Marie Resources Ltd. [NEX: RSR.H], closed at 9.5 cents for a loss of 0.5 cents - 0.717% of TSO;
3. Gold Star Resources Corp. [NEX: GXX.H], closed at 18 cents for a loss of 0.5 cents - 0.548% of TSO;
4. Golden Hat Resources Inc. [NEX: GHA.H], closed at 7.5 cents unchanged - 0.498% of TSO;
5. Gainey Resources Ltd. [NEX: GRD.H], closed at 32 cents unchanged - 0.493% of TSO;
6. Becker Gold Mines Ltd. [NEX: BGD.H], closed at 15.5 cents unchanged - 0.477% of TSO;
7. Avigo Resources Corp. [NEX: TMX.H], closed at 53 cents unchanged - 0.321% of TSO;
8. Champlain Resources Inc. [NEX: CPL.H], closed at 9.5 cents unchanged - 0.204% of TSO;
9. Datinvest International Ltd. [NEX: DAI.H], closed at 20 cents unchanged - 0.202% of TSO;
10. Rocher Deboule Minerals Corp. [NEX: RD.H], closed at 46 cents for a gain of 2 cents - 0.157% of TSO.

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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NEX Report for October 25, 2007

On Thursday, the Barrel's Bottom Composite Index for the NEX closed at 88.09, up 0.07 points or 0.0795% from its previous close of 88.02. Despite a 1.5 cent/share opening gain in ITI World Investment Group Inc. class 'A' [NEX: IWI.H], the BBCI fell more than 0.15 points in the first minute after market's open, to 87.85. The ITI gain was more than swamped by a 2 cent/share opening drop in the price of Maximum Ventures Inc. [NEX: MVI.H] and a 1 cent/share opening drop in the price of Rocher Deboule Minerals Corp. [NEX: RD.H]. The index's dip below 87.9 was gone four minutes later due to a 1 cent/share interday rise in the price of Rocher. That rise brought the BBCI up to 87.92 as of 9:35 AM ET.

The 87.9 level failed to hold as of the end of the first half-hour of trading, though. A 1 cent/share interday drop in Rocher's price as of about 10 AM ET put the BBCI right back where it was as of 9:31 to 9:34 AM ET. The index managed to climb back to just below 87.9 as of 10:28 AM ET, due to a 1 cent/share gain in the price of Silvio Ventures Inc. [NEX: SIV.H], and above 88 as of 10:43 AM ET thanks to a 3.5 cent/share opening rise in the price of Module Resources Incorporated [NEX: MLE.H]. A 6.5 cent/share opening rise in the price of Raystar Capital Ltd. [NEX: RYA.H] put the index up to 88.21, the high of the day, where it stayed until 11:49 AM ET. 88.15 was the level around which the BBCI hovered until 12:20 PM ET; it hung around 88.1 until 12:26 PM ET.

That minute saw a 0.5 cent/share interday drop in the price of Biomerge Industries Ltd. [NEX: BIL.H], which put the index down below 88 again. The fall continued down below 87.5 to 87.42 at 12:50 PM ET, which marked the low for the day; the BBCI stayed at that level for one minute's time. It bounced back to a little above 87.5 and stayed around that level until 1:12 PM ET. A 2.5 cent/share opening gain in Fairchild Investments Ltd. [NEX: FIC.H] put the BBCI just below the 88 level, and an additional 0.5 cent/share gain in Fairchild's price put the index above 88. It would stay there until a brief dip at 1:51 PM, and a more enduring decline six minutes later as a result of a 1 cent/share interday drop in the price of Toba Industries. The index stayed between 87.8 and 87.9 until 3:42 PM ET, when an end-of-day rally pushed it well above the latter level. It wasn't until three minutes before the close of trading that the BBCI pushed above 88 again: Toba's stock went up 1 cent/share, putting it at a 1.5 cent/share loss of the day but also putting the index at its closing level of 88.09.

Here are the hourly values for the Barrel's Bottom Composite Index, rounded to the nearest hundredth of a point:

• 10 AM ET: 87.85
• 11 AM ET: 88.03
• 12 PM ET: 88.15
• 1 PM ET: 87.56
• 2 PM ET: 87.83
• 3 PM ET: 87.81
• 4 PM ET/Close: 88.09

This is the first part of the daily NEX report. The second part covers NEX stocks that have sent out news releases during October 25th and the third part covers NEX stocks of note for that day.


[An earlier version of this part of the report has been posted at the Barrel's Bottom Blog over at Stockhouse.]


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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News Releases From NEX Companies For October 25th

There was one news release about a NEX company that was picked up by Marketwire on Thursday, and another one from a company that's joining the NEX Board soon. The first is from Dynasty Metals & Mining Inc., which is listed on the Toronto Stock Exchange [TSX: DMM]. It announces that Dynasty has received conditional approval of its sale of "the core concessions of its Copper Duke gold/copper project" to SBI Skin Biology Inc. [NEX: SBI.H] for 51,000,000 shares of SBI and the retention of a 2% net smelter rate. So, the SBI reverse takeover of/by Dynasty has been conditionally approved by the respective exchanges on both ends of the transaction. One of the conditions that Dynasty has to meet is the securing of shareholder approval of its sale.

The other release from Marketwire is about a TSX Venture company, Wavefire.com Inc. [VSE:WAF.A]. The release says that Wavefire has been classified as an inactive company, and thus is going to move to the NEX "effective immediately." Despite that declaration, the shares are still listed on the VSE and the symbol hasn't been changed in conformity with that decision as of yet.

One bulletin from a NEX company was at the bottom of Thursday's TSX Venture Daily Bulletins. The Venture has accepted the documentation for filing of The Silver Recycling Company Inc. [NEX: TSR.H]'s private placement of 500,500 units at 50 cents/unit for gross proceeds of $250,250. Each units contains one common share and half a purchase warrant, with strike price of 65 cents/share and life of 1 year. The placement, which was non-brokered and had no insider or pro participation, was originally announced on June 6th and reported as completed on August 10th. Canjex Publishing has a webbed copy of this latest bulletin. TSR.H's last close of 44 cents/share was made on Monday, even though there was an odd-lot-sized trade on Thursday.

One news release from a NEX company was sent out exclusively through Canjex on Thursday, from the same company that sent out the bulletin linked to above. The Silver Recycling Company has announced that it's upping the strike price of 420,000 incentive stock options issued to directors, from 33 cents/share to 50 cents/share. These options will expire on September 20th, 2012.


To read about the highlighted NEX stocks for Thursday, you can go here.

Highlighted NEX Stocks For October 25th

Twenty-eight NEX stocks traded on Thursday. Of these, 9 advanced, 6 declined and 13 remained unchanged. There were 110 trades. The top trader in terms of raw volume was Rocher Deboule Minerals Corp. [NEX: RD.H], with 202,060 shares traded. Golden Hat Resources Inc. [NEX: GHA.H] was the runner-up, with 164,000 shares traded. According to the TSX Venture closing summary, the top trader in terms of value of shares traded for Thursday was also Rocher Deboule, which was also tops in number of trades. Rocher placed third on the top ten daily-turnover list, found below; Golden Hat placed fourth.

Two NEX stocks traded more than ten times on Thursday. First with respect to numerousness of trades was Rocher Deboule, which traded 25 times. The first trade put Rocher at a slight loss, which was erased within five minutes of market's open. After an odd-lot trade of 108 shares that went at 41 cents/share, the next nine trades went at 44 cents/share; these put RD.H back at unchanged. All of those eleven trades were made between 9:30 and 10 AM ET. Almost at the latter time, a trade of 17,500 shares went at 43 cents/share, followed by two of 1,000 and 4,000 shares which went at 42.5 cents/share. The 43 cent/share level was regained by 10:04 AM ET and was held to for the next seven trades. At about 3:44 PM ET, the price went up to 43.5 cents/share with a trade of 15,000 shares. The last two trades of the day, of 18,500 and 10,000 shares each, went at 44 cents/share, enough of a gain to leave Rocher unchanged on the day. Although there seemed to be several bought and sold blocks, the record was sufficiently blurred to be undefinitive. [Several hundred thousand shares of Rocher came out of escrow on Thursday, but there was no definite block dump in the record. It's possible that the relatively huge volume traded had a released-for-trading share dump as a partial cause, but those previously-escrowed shares would have had to have been widely held for this to be the reason.] 560 shares of Rocher, or $229.60 worth, went at 41 cents/share; 5,000 shares, or $2,125 worth, went at 42.5 cents/share; 115,000 shares, or $49,450 worth, went at 43 cents/share; 15,000 shares, or $6,525 worth, went at 43.5 cents/share; and, 66,500 shares, or $29,260 worth, went at 44 cents/share.

The second-most numerous trader in terms of number of trades was category regular Silvio Ventures Inc. [NEX: SIV.H], with 11 trades on Thursday. Unusually for Silvio, almost half of those trades were board-lot-sized. The first three of the six odd-lot-sized trades went at 52 cents/share, and the other three went at 53 cents/share; all of them were bought through PI Financial. The five board-lot-sized trades, of 500, 4,500, 500, 2,000 and 1,000 shares, went at prices ranging from 55 to 57 cents/share. The first three went at 55 cents, the fourth went at 56 and the fifth went at 57 cents/share; it established Silvio's closing price. This left SIV.H with a gain of 3 cents/share since Wednesday's close, on daily volume of 9,324 shares.

The top percentage gainer in Thursday's trading was Fairchild Investments Ltd. [NEX: FIC.H], which closed at 5 cents/share for a gain of 3 cents/share, or 150%, on the day. This close meant a near-recovery in the price of Fairchild from its Tuesday spill. Three trades, of 23,000, 1,000 and 1,000 shares, put the price up. All of them were bought through CIBC, suggesting a bought block equal to the daily volume of 25,000 shares. The first trade went at 4.5 cents/share, and the other two went at the closing price of 5 cents/share.

The top percentage decliner for Thursday was Biomerge Industries Ltd. [NEX: BIL.H], which closed at 1.5 cents/share for a decline of 0.5 cents/share or 25%. There were six trades in Biomerge, although only four of them were of board-lot size. Of those four, the first three, of 7,000, 5,000 and 14,000 shares, went at 2 cents/share. The last board-lot'er of 3,000 shares put BIL.H at the closing price. The two odd-lot'ers both went at 0.5 cents/share.

Finally, the above-mentioned list of yesterday's top ten traders, as measured by % of total outstanding shares or daily turnover (all prices in per-share terms):

1. Datinvest International Ltd. [NEX: DAI.H], closed at 20 cents unchanged - 1.10% of total shares outstanding;
2. Avigo Resources Corp. [NEX: TMX.H], closed at 53 cents for a gain of 3 cents - 0.802% of TSO;
3. Rocher Deboule Minerals Corp. [NEX: RD.H], closed at 43 cents unchanged - 0.795% of TSO;
4. Golden Hat Resources Inc. [NEX: GHA.H], closed at 7.5 cents unchanged - 0.475% of TSO;
5. Galleria Opportunities Inc. [NEX: GOI.H], closed at 19.5 cents for a loss of 0.5 cents - 0.318% of TSO;
6. ITI World Investment Group Inc. class 'A' [NEX: IWI.H], closed at 43 cents for a gain of 0.5 cents - 0.275% of TSO;
7. X-Tal Minerals Corp. [NEX: XMT.H], closed at 55 cents for a gain of 2 cents - 0.238% of TSO;
8. C&C Industries Corporation Ltd. [NEX: CIN.H], closed at 17 cents unchanged - 0.209% of TSO;
9. Toba Industries Ltd. [NEX: TBG.H], closed at 15 cents for a loss of 1.5 cents - 0.203% of TSO;
10. Champlain Resources Inc. [NEX: CPL.H], closed at 9.5 cents for a loss of 0.5 cents - 0.192% of TSO.

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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