Account gamble
Sabina very fair
John Bull
As a rule I have concentrated on recommending those shares which will — or I expect will — react to either an interim or a full year statement. The results of this exercise have, on the whole, been thoroughly satisfactory and I hope that more than a few readers have been able to profit accordingly. It is, however, impossible ever to judge accurately what gains could have been made since the timing of deals will radically alter the whole picture.
This week rather than follow the usual pattern of selecting a share on the basis of a particular set of results, I am picking a situation which I feel will benefit from one or two announcements concerning trading activites. I first heard mention of Sabina Industries when Nephew Wilde bought a holding for his portfolio. It certainly was not one of his best performers but what I have noticed with considerable interest is the sharp gyration of the share price.
The first question that I have asked myself is why did the shares fall so sharply in the first place from a high of 248p to under 100p in less than a month? The answer appears to be that with the shares in a narrow market it did not take a great deal of selling to send the price down when the news was announced that Gable Industries, which had an option on the Giulini process to manufacture gypsum from the waste material from phosphate plants and was due to exercise that option at the end of August by paying $500,000, instead asked for an extension. Sabina refused and the option lapsed.
Yet Gable's action does not imply that Sabina's process is any less viable. It has been approached by phosphate manufacturers and is also prepared to construct a plant itself. And what I feel will be hot news over the next fortnight is that Imperial Oil will announce that it is taking up an option on the process.
Apart from this news bringing attention to the shares I also hear along the grapevine that a party of journalists will be off to Cologne later this week. It is there that Giulini Gmbh, the phosphate fertiliser firm has been recovering gypsum for the last nine years. It has no trouble selling the product in the form of building materials, such as building blocks and gypsum for making wall-board and floors.
Apart from this side of Sabina's interests it has mining operations in Arizona where it appears there could be sizeable reserves of copper. It has 81 claims over an area of 750 acres and with this property near Tucson there are also Property attractions.
First dealings Last dealings Account Day Oct. 2 Oct. 13 Oct. 27 Oct. 16 Oct. 27 Oct. 27 Oct 30 Nov. 10 Nov. 21
Previous page
