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Quiet trading expected to continue

THE sharemarket is expected to be fairly quiet leading up to the Federal election due on November 10.

With uncertainty prevalent around the world and world issues at the forefront of people’s minds, the Australian sharemarket will bide its time in the short term.

A double bottom is still expected by most pundits, with further terrorist attacks possible and ground troop activity in Afghanistan about to start.

Investors in the US have tended to ignore recent bad news about anthrax attacks and the like, and have bought up stocks after earnings results have met expectations. Investors recently have expressed confidence that the huge fiscal and monetary stimulus in the system will engineer an economic recovery.

This is very likely, however, it should happen after another quick shock to equity markets. The current trend is synonymous with a double bottom, as markets have strengthened since the September 11 attacks quite strongly.

Marymia

Exploration NL

Investors are expecting a promising future for Marymia Exploration NL, based on the results of Tuesday’s public auction of 8.6 million fully paid up ordinary shares.

These shares became available after contributing shares in the company were forfeited due to a non-payment of a call. As required by ASX Listing Rules and the Corporations Law, the shares were auctioned to a room full of stockbrokers, investors and interested observers.

The total amount raised for Marymia Exploration NL was approximately $1.2 million, giving the company a combined warchest of $5.7 million for future projects.

The company recently entered into a Share Subscription Agreement with Gabor Holdings Pty Ltd, an entity associated with Perth-based businessman Ian Trahar. This agreement provided for Gabor to inject an initial $4.5 million (100 million ordinary fully paid shares at an issue price of 4.5 cents each) into the company.

After this arrangement, investors have marched with confidence into Marymia Exploration NL, paying three times the amount that Mr Trahar and associates have to be part of the ride. Marymia Exploration after the issue of the new shares will have approximately 131 million shares on issue with most of the stock in Mr Trahar’s hands. Ian Trahar has shown in the past that he can be followed with confidence when taking control of small companies. In the past, Mr Trahar and his associates James McAuliife and Harley Whitcombe have taken control of Kiwi Gold NL and transformed that company from small exploration company capitalised at around $3 million into The Gribbles Group Limited. The Gribbles Group Limited is the largest Pathology Company listed on the ASX, with a current market capitalisation of $360 million.

Mr Trahar and his associates have shown that they are capable of transforming a small company into a market leader in a unique industry. Investors who picked up stock in the public auction will be hoping that a similar experience awaits them as to Kiwi Gold shareholders. This company is one to place on your watch list, and expect a name change and a change in focus. Revesco Holdings Pty Ltd is a short price for the new name.

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