Saturday, August 18, 2012

Ocean Spirits local cardholders fund Macro gains

There has been some interesting stock market action recently in Macro Corporation. Macro was previously the owner of the Ocean Spirits cruise business. Last August Macro announced the sale of the Ocean Spirits business to Jai Tourism from Sydney, and a move into coal mining. It attracted media attention at the time when the Ocean Spirits locals cards were cancelled as part of the transaction. The card offered unlimited reef trips for a year subject to availability on the boat.

The chart below shows increased interest in Macro in recent months for an illiquid company previously  rarely traded. Macro emerged from a trading halt on Friday and announced the acquisition of Indonesian coal exploration permits. Macro jumped a further 18% with more than 2 million shares traded for the day out of 92 million on issue. Sale of the remaining Ocean Spirits IV dinner cruise vessel has also been announced at a healthy premium to book value.

Macro share register is dominated by Malaysian interests with 66% of shares held by Entrepreneur Development Capital. The companies share a registered address in Carlton, Vic, although the ASX don't seem to have been notified and still retain the Cairns Shangri La address on their website? ASX announcements from Macro are a long trail of halts, suspensions, delayed accounts and director rotations. Detailed analysis could be interesting weekend relaxation!

However, having noted the recent activity KS fired off an email earlier in the week to Fair Trading on the status of an outstanding complaint. Macro were reported to have offered a refund to those who had made no use of the card at all. KS requested a pro-rata refund for the unused 6 months. There was no response to a formal direct request from the company so a complaint was lodged with Fair Trading last year.

Further enquiry back in March brought a response from the Cairns office that "Fair Trading has been in negotiations with the solicitors for Ocean Spirit Cruises in an endeavour to resolve your complaints.  Although the process has not reached a rapid resolution there has been some progress made in negotiations". This weeks email enquiry has not yet resulted in any response. Perhaps the Cairns Fair Trading office has been closed and the staff sacked?

The market capitalisation of Macro has increased from less than $2million to more than $20million over the past year which has certainly outperformed the Loose Change portfolio! However all that was really wanted were a few reef trips .......

No comments:

Post a Comment