Reverse takeover phenomenon - Aussie Stock Forums

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  1. #1
    The Contrarian Averager So_Cynical's Avatar
    Join Date
    Aug 2007
    Sydney - Muntinlupa

    Default Reverse takeover phenomenon

    Over the last 8 months or so a new trend has emerged, the vast majority of ASX listed resource prospectors are getting hammered with some trading at below 0.01, often raising money to cover listed company compliance costs by issuing shares at 0.002 or less...i would approximate that at least 100 ASX listed stocks are in serious trouble.

    In desperation they are disposing of assets and reducing costs to stave off bankruptcy, becoming shell companies then looking to reverse takeover opportunities in the tech startup sector, sometimes the shell comes after the tech approach, securing a partner then disposing of exploration assets.

    Spend a few hours looking at the bottom end of the resource stocks and the conclusion that there is a massive rationalisation going on is inescapable, the upside is that the ASX is getting a heap of interesting little tech startups and i reckon there are a few diamonds among them, certainly heaps of potential.

    A few on my watchlists, # i have a position in.
    • DUB - Dubber, cloud call recording & management
    • RAD - Weebit, nano memory technology
    • DUO - Zyber, secure file sharing #
    • LVT - Livetiles, MS sharepoint content creation software
    • NOR - World phone, web based calling
    • IVO - Invogor, big data marketing
    • MRR - Hello, DIY web real estate
    • AWO - IOT group, smart everything
    • MOO - Shareroot, social media content management
    • NRR - Aldicion, medical software
    • ESR - Data Laboratory's, HR data platform
    • ARO - Gymeny, fitness app
    • VPC - Velpic, cloud based learning platform
    • DSX - Decimal, financial services platform
    • APY - (Looking for opportunities) #
    • FIE - Linius, video platform
    Statistics: 172 Closed Trades since July 07, Trades: Winners 135 - Losers 37, Expectancy/$1 Risked: $0.78

  2. #2

    Default Re: Reverse takeover phenomenon

    Great topic. Good list.

    From a chartist's point of view these charts look crap and are easily thrown out. It's worth a few extra minutes to check the corporate news to ascertain what are the current corporate activities. I've discarded charts thinking they were mineral explorers (ugh) only the miss great trend break out opportunities.

    Another aspect of these charts is that these trends start from a very low base, both in price but also in their daily traded volume. My volume filters miss many of these opportunities. If I widen my filters I'll quadruple the real crap that comes up in the scans.

    I love the comment "looking for opportunities", no business, no assets, but their share price is trending higher.
    Cheers, Peter.

  3. #3
    skc's Avatar
    Join Date
    Aug 2008
    The dark side
    Blog Entries

    Default Re: Reverse takeover phenomenon

    Quote Originally Posted by So_Cynical View Post
    A few on my watchlists
    Here's a few more to add to your list (some of these a bit older than 12 months)

    BRN - Brainchips. Self learning chip of some sort
    POK - IoT platform
    CVT - IT security
    RYG - IoT platform
    QUR - To acquire LogiTag - RFID stuff
    RNT - Rent.com.au
    TMP - TechMpire. Online marketing
    VIT - Looking at opportunities
    AB1 - Apps of sorts
    BIG - Youtube marketing
    FFG - Internet investment group
    ISX - Online payment security

    Probably not a comprehensive list. I'd be interest to see some statistics of the average performance from announcement to capital raising to 1, 2, 3 and 6 months after.

    My guess is that there'd be money to be made in every situation (i.e. it will print a price higher than the price immediately after the announcement). But by 6 months time the average return might be pretty average, as the 1 15-bag winner is offset by the other 20 losers.

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