the land article by the punter

For anyone interested in reading, this is from today's copy of The Land newspaper (NSW's Agricultural newspaper). It's a piece by its stock market punter obviously.



RARE EARTH TEMPTS

*Back in February, when he first looked at them, the date on Data-motion almost made the Punter�s head spin.

A relatively small computer security company in Perth, with the grand title of Data-motion Asia Pacific Ltd (ASX code DMN), had suddenly turned to mineral exploration in the desert.

Now although the company may be well connected in mining circles in the West Australian capital, on paper at least it appeared to have no expertise and no track record in the minerals business. Only the non-executive chairman, Ian Fisher, lists mining companies in his curriculum vitae.

Under a deal done in December with Oroya Mining, DMN had committed itself to spending about $2 million on exploration, despite the fact that at the time it only had around $1.7m in its piggy bank.

The good news was that it had brought into a rare earths prospect, at Mt Barrett, in similar ground and not far from Lynas Corporation�s big Mt Weld discovery in North-West WA.

Rare earths, such alanthanum, yttrium, neodymium and others, are used in small but vital quantities in computers, television screens, oil refining, ceramics, batteries, medical diagnostic equipment, lasers, lighting and high-tech glass, to name just some of their applications.

The great bulk of the world�s supply current comes from China, and the prices have soared as China has restricted exports of the precious stuff.

Lynas (ASX code LYC) has made a fortune for its early investors.

Would-be rare-earth miners are stock market darlings. Datamotion first caught the Punter�s eye because of a surge in trading and a sharp rise in the price, from almost nothing to twice almost nothing.

At the time he felt it was too risky. But a week ago
the shares again rose on heavy trading, perhaps because the company is due to start drilling this month.

When the shares eased last Friday - and much against his better judgement - the Punter jumped in.

He bought not the shares, but the even riskier March 2013 options (ASX code DMNOC) at a fifth of a cent each.

Half a million have cost him a shade over $1000.

They will be worthless if the underlying DMN shares
do not pass the half-cent mark before then. DMN are already selling for 0.4 cents.

*The Punter has no financial qualifications and no links to
the financial services industry. He owns shares in a number
of companies featured in this column.*