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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Prosperity Minerals - First deal since float

July 2006

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • PMHL
  • Price:
  • 153.5p
In a bid to diversify its operations, Prosperity Minerals has conditionally agreed to acquire a 40% interest in Anhui Chaodong Cement, a Chinese cement company listed on the Shanghai Stock Exchange for RMB190.4m (£12.7m). Immediately prior to its suspension, the Chaodong share price was RMB7.14 (47.5p), while Prosperity’s proposed consideration will be at an equivalent price of just RMB2.38 (15.9p), which therefore looks like a good deal. Meanwhile, Prosperity’s joint venture partner, Anhui Conch, will also acquire close to a 20% interest. Chaodong’s accounts for the year ended 31 December showed a gross profit of RMB106.5m (£7.1m) on sales of RMB549.5m (£36.6m), while at the operating level i ...

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Prosperity Minerals (October 2006)

With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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