Mirach

Mirach - Besides a drilling update on Kampung Minyak Oil Fields and the co's recent 2Q13 results where net profit came in at US$43,000 versus a net loss of US$1.4m, there is no other co. specific news to highlight on the counter, who has of late been subjected to high volatile intra day swings. Note that its hard to talk much about fundamentals for Mirach, given that the stock has no earnings and already trades at more then 8x P/B, with the share price having rose by more then 500 - 600% last since the start of the year. Recall that interests in the counter has been pretty strong after the grp proposed a private placement of 152m new shares to 10 individuals at $0.1242 each or double the price traded in May. Part of the $18.1m proceeds (net of 4% referral commission) will be used to redeem its $16.9m 3% senior convertible bonds due 2014. At the same time, the group has granted a two-year 7% convertible loan of up to $36m to six of the above individuals. It is intriguing why the group would want to replace a 3% convertible (@ $0.12) with a more expensive 7% convertible (@ a slightly higher price of $0.1242). We know of no fundamental reason why the stock has sky-rocketed more than six-fold in the past six weeks.