Trading halt: anyone able to find out why?

[henno6x6]

im new to shares and bought into some that my family have {TZN} but they were put into a trading halt today and im not sure if the outcome is going to be good or bad If anyone has the time to have a quick look at the company and see if you can find anything out for me as i wouldnt even have a clue where to start looking. ive looked at their announcements but they seem pretty vauge personally i think it will be good news as shares traded have 10x normal days trade and share price has doubled so why would someone be willing to pay 2x the share price it was a week ago.

 

[Joe Blow]

Announcement 02 Apr 2012 13:55

Terramin Australia Limited – Request for Trading Halt

The directors of Terramin Australia Limited (Terramin or the Company) (ASX Code: TZN) hereby request a trading halt of Terramin's securities from ASX.

In accordance with ASX Listing Rule 17.1, the Directors of Terramin provide the following information:

1. The trading halt is requested pending an announcement regarding an update on the Company's previously announced strategic corporate review.

2. The Directors of Terramin request a trading halt until an announcement is released, or the commencement of normal trading on Wednesday 4 April 2011, whichever occurs earlier.

3. The Directors of Terramin expect the trading halt to be ended by release of an announcement regarding the update on the Company's previously announced strategic corporate review.

4. The Directors of Terramin are not aware of any reason why the trading halt should not be granted.

5. The Directors are not aware of any other information necessary to inform the market about the trading halt.

Please do not hesitate to contact me on (08) 8213 1415 if you have any further queries.

Yours faithfully
Stephane Gauducheau
Company Secretary

 

[henno6x6]

Yea I did find that out but I do not know what has caused the halt, I understand that it is so they have time to announce something major that will either cause the share price to go up or down significantly. Is it a good sign that the volume of share traded has jumped by 10x as well as the share price almost doubling in the last week or so, I think it is but I'm only a noob with shares, o well worst case scenario is I loose all my capital.

 

[burglar]

... I'm only a noob with shares, o well worst case scenario is I loose all my capital.

Hi henno6x6,

Firstly the word is lose, not loose.
We all feel your pain!
The trading halt allows shareholders to absorb the report before trade resumes.
You get about 20 minutes (I believe).
It blunts the worst effects of "Pump and Dump".

If you are a lucky noob, you may see the report before trade resumes (this assumes you watch very closely, or the company reports when it says it will).

Then you will need experience in interpretation of reports to know whether the share price will rise or fall.
You can also see "Buyers" and "Sellers" to gauge optimism or otherwise. But they too, are guessing also!!

Good luck!

 

[Chupacubra]

Watch the market depth close to open to see what people in the market are thinking. Sometimes when good news is released, people will sell off in order to take their profits. Occasionally when bad (but not devastating) news is released the stock may stay relatively stable.

It all depends on industry and sentiment really .

 

[explod]

Going by the chart action for a few days before the trading halt there is some optimism and obviously some in the know have taken positions with a reasonably high expectation.

Big volume on the closing day so could also be a bit of pump and dump on the rumour and most likely close the gap before next move up. In other words drop back down to about 17 cents before next up move. This could take a few days to play out.

http://bigcharts.marketwatch.com/ad...rsToggle=false&chartStyleToggle=false&state=9

 

[henno6x6]

So it might not be all doom and gloom then so just sit tight and hope for the best for now I guess if I see the announcement before trading commences again and its a bad announcement should I try and sell or just sit tight

 

[explod]

So it might not be all doom and gloom then so just sit tight and hope for the best for now I guess if I see the announcement before trading commences again and its a bad announcement should I try and sell or just sit tight

Under the law only a financial adviser can suggest what you should do.

Based on the action leading up to the close and as a rule for me I would sit and watch for a few days unless of course on the open you can see a very big sell side as against the buy side and the report sounds bad.

It is just something you have to ride out and judge for yourself. Well worth discussion with your contacts who put you onto it in the first place.

 

[henno6x6]

Family bought them some time ago that was when they were about to peak since then price has dropped about 90% but I have been watching them and when I saw the sudden jump I got on the wagon. But considering how much they have lost I don't think they are the best ones to ask.

 

[explod]

Family bought them some time ago that was when they were about to peak since then price has dropped about 90% but I have been watching them and when I saw the sudden jump I got on the wagon. But considering how much they have lost I don't think they are the best ones to ask.

Well if on the open it holds at around this level, say 17 to 19 cents then on the 1 year chart it may indicate the break of a down trend over that period.

Go back over the recent reports and announcements of the Company, particularly the quarterly report ending 31st December which would have been released towards the end of January. If you are unclear on any matters just ask away and it would be handy if you can paste up a link to the reports also and we will have a look.

 

[henno6x6]

announced today they are looking to sell off their share in an over seas mine, so far today no real change in share price.