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I am a beginner who has been tipped to buy " NRL.AX " because they own http://www.moneyguru.com which looks like a good site.

I don't know a lot about investing anyway and need to know how to get a stock purchased on the Australian market from France ?

Anybody know anybody I can use who does not cost a fortune ?

Also does anybody know anything about NRL - Newland Resources Limited ?

Thanks in advance

Bob
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No. of Recommendations: 5
Dear abobulous (Bob)

For a start, it may be a good idea to learn more about investing before jumping in headfirst. There are many areas on this website that can help you do that, so I won't repeat them here on this board.

If you have done this already I've included some information on the company and hopefully some of the links as well.

For a start, I went to the Australian stock exchange www.asx.com.au

From this site the first thing I found out was this

Issuer Code NRL
Securities and Market Call Codes
Official Listing Date 3 July, 1986
Industry Group 12, Gold Explorer
Exempt Foreign? No
Head Office Address 129 Edward Street, Perth, Australia, 6000
Head Office Telephone 08-9227 1186
Head Office Fax 08-9227 8178
Share Registry Advanced Share Registry Services
7th Floor, 200 Adelaide Terrace, Perth, Australia, 6000
Share Registry Telephone (08) 9221 7288
Share Registry Fax (08) 9221 7869
Directors Dr Kevan L Ashworth (Director )
Lindsay A Colless (Director )
Peter Yunghanns (Director )
Principal Activities Mineral exploration.


What does this tell me? Firstly that their main activity is mining and they're in the industry group 12, Gold Explorer. They may be looking at expanding their activities to include internet companies. If you go to the asx website you can also check out company announcements etc.

I then checked out your link to www.moneyguru.com and I enclose this.
Who We Are
MoneyGuru exists to fill the gap between the institutional quality investment information available to professional investors and the superficial advise offered to private individuals by other websites.

The Guru believes the combination of increasing public interest in the stock market, coupled with a plethora of internet sites offering superficial financial advise (often based on mere hearsay and gossip), is a dangerous combination.

MoneyGuru provides institutional quality research and analysis similar to that available to City professionals, but in a style that is accessible to private individuals who are not familiar with all the City-speak and jargon.

Founded in 1999, MoneyGuru is the first UK internet site to have its own in-house team of top investment analysts, who provide in-depth analysis on a global range of companies and industry sectors.

The Guru is aimed at anyone who makes informed investment decisions, from people with a few thousand pounds, who want to spend half an hour or so a week researching the markets, to the mass wealthy, who want to make highly considered choices about where to invest.

Registration - information is still free in this section but users will be asked to register their details

Subscription (£11.95 per month). Premium facilities including in-depth research and analysis from our team of in-house Guru analysts, broker views on UK and non-UK shares, IPO views, press cuttings, real-time prices, a full news archive, search by investment criteria, detailed global market information, and a charting program that not only tracks share prices but also analyses trends.


Then what you need is to check out the companies financial situation. You could find this at their website (if they have one). Moneyguru also has a site at www.moneyguru.co.uk. It's possible that they're not run by the same company.

There's of course LOTS of other things you must check out before you invest, but this will give you some ideas and somewhere to start.

Three notes however:
1) Before worrying about how you can get shares, you must worry about why you want to invest in this company.
2) If it's sounds to good to be true, IT IS!!
3) Up until 5 minutes ago I have never heard of this company.

Good Luck and congrats on the first post. If you have questions regarding the Australian sharemarket, ask. This board is very friendly, knowledgeable and efficient.

Raz
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Hi, Bob,

You might find some useful info here. (You may have to register):
http://ninemsn.com.au/homepage.asp

You will find the company is high in debt and has not had a profit for years. It has options on a few speculative ventures. It is of course a fairly speculative company. Its ROE has been known to vary from +1900% to -9000% from one year to the next.

I don't know any more than that about Newlands. I also don't know anything about moneyguru's earnings. Especially don't know how much revenue is expected to be paid back to NRL from its ownership of moneyguru, if the deal goes ahead.

Beware!
Reporting standards for mining companies are less stringent than for industrial stocks. In the past year, number of West Australian mining companies have attempted to latch on to the technology boom. It may be that those looser reporting standards make it easier. I thought the idea had stalled since the ASX cracked down late last year, and with the collapse of the dotcom bubble. (I think they may have even delisted a few companies).

In addition to that risk, you'd also be running additional risks like international currency speculation, and tax regimes in different countries. You would probably have to watch it very closely. Remember our market is open at night, your time. (Australia is about about nine hours ahead of French time). How would you propose to track it?

It seems extremely risky to me. Any money put into it would be pretty well in the category of 'Gambling Money'.

I don't want to rain on your parade, but I hope you have considered all these things already.

Good luck,

Chris

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Wow what a comprehensive answer !

Thanks for the great advice :-)

Bob
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Thanks Chris

I can see there is a lot to know and learn here :-)

I am told that NRL is a "shell" whatever that is... I don't like the sound of "loose reporting" but I am told that there will be a 25 Million dollar investment made shortly... would this amount affect the price greatly do you think ?

Bob
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Hi Bob,

... would this amount affect the price greatly do you think ?


It's anybody's guess. I said it's more of a gamble than an investment.

An earlier poster recommended reading the company statements on the ASX website. Did you do that? You should.

Last year. this company was trading as low as about six cents per share. Yes, that's $0.06! It was generally around forty cents. It rose to about $1.60 in March, this year, following the announcement of the purchase of Moneyguru. By April, it was back to forty cents. Lots of tech stocks did the same thing at the time.

It seems to me that the current price probably already reflects the value of the investment in Investorguru, Rectory and the maize farming in Bulgaria, etc. IMHO, the opporetunity for a quick buck has already passed. If you know something the market does not, about the earning potential of those investments, that could change the assessment, of course.

There are two other dangers with these stocks you need to be aware of, too. They are: Buy/Sell spread, and volume.

First, volume.
This company is not as bad as some, but last Friday, its entire day's trade totalled less than A$5000. So you can't necessarily make large profits. If you are trying to sell several thousand dollars' worth, you could be the only seller, and therefore likely to force the price down by yourself.

Buy/Sell spread
This is the difference between the best offer to sell, and the best bid to buy. With large companies,there is so much volume and so many players that this difference is negligible.

With Newland, its last sale was forty-one cents on Friday. But you can't get that price now. The best bidder is thirty-two cents. If you wanted to buy, the lowest offer is forty-four cents. That's a buy/sell spread of twelve cents. So if you bought now, the best price you could get immediately would be about a 30% loss!

That's not to say that a $25 million investemnt in a $11 million dollar company wouldn't affect the price. Much would depend on the earning power of those investments.

Still sounds like a gamble to me. I agree it would have been nice to have bought it for six cents in May last year, or even forty cents in December. If you then sold it for $1.60 in March, you'd probably be pretty happy with yourself. Can you do that now? I'm not so sure. Maybe you can see some sign of a breakout in its current chart. If you can, you are better than I am. I can't see it.

That's about all I can offer.
Good luck,

Chris

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A shell is basically the listing on the exchange. Most if not all other resources of the company are negligible, the real value is the listing as this gives a shortcut to the market for "moneyguru". It saves time and certain conditions from having to be met. That is, it cuts through a bit of red tape. That is why it was popular for people with a tech idea etc to get it to the market through mining explorers (negligible capital assets).
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