SHARES in electric bike manufacturer Vmoto (ASX code VMT) suddenly accelerated last week. They hit a high of 3.1 cents on Tuesday and Wednesday, doubling the Punter’s money less than a month after he bought them.
Prudently (even the Punter is prudent at times) he hastily sold half his holding on Wednesday at 3c, just below the peak.
He still holds 50,000 VMT worth some $700, which now have effectively cost him nothing.
The Punter is not sure what was behind the buying.
Perhaps it was the release of Vmoto’s UK roadshow preparing for its shares to be quoted on the AIM (smaller and riskier) section of the London Stock Exchange. Perhaps it was a series of photographs showing a host of Eagle executives being shown over the Vmoto plant in Nanjing, which is to begin manufacturing Eagle bikes under a recent agreement.
In hindsight, the Punter was prudent not to rush into Marmota Energy (MEU) a couple of weeks ago (21/9), when they soared to 29c on news of visible copper and nickel sulphides in surface samples.
A week later they were back down to 7.5c. Truly a market for the quick and the dead.
Monax Mining (MOX) which owned nearly 23 per cent of MEU shares, quickly joined the profit-takers. It sold 3.4 million MEU, but only managed to get between 18c and 21.5c for most of them. It still owns a fifth of Marmota, and has pocketed more than $600,000 in cash.
Marmota has also picked up cash.
Its rights issue earlier this year was a flop, but it has succeeded in placing the shortfall and has raised $3m. That will enable it to conduct a high resolution aeromagnetic survey of its best prospect, Moonbi, a 4.5 by 5.5 kilometre area west of the Challenger gold mine in South Australia, to be followed by drilling.
Like Challenger, Moonbi lies on the edge of a regional-scale gravity high.
Marmota also plans shallow drilling of its Aurora Tank target, about 50km from Challenger, if it is given the go-ahead by a heritage survey.
Less prudently, perhaps, the Punter has decided to join the fun and bought 15,000 MEU last Friday at 7.2c.
