Basking in Branson’s spotlight

It’s not easy being a junior resources company on the Australian Securities Exchange. With investors focused on companies like BHP Billiton and Rio Tinto, you are constantly fighting for attention and recognition.

Perhaps that explains a slightly odd press release we received from Liberty Resources, a clean energy company (coal gasification is their thing) with a market capitalisation of around $23 million.

Yesterday, the company proudly made the announcement that it has managed to arrange a one-hour meeting with Virgin Group founder Sir Richard Branson, who will be in Perth in March 2010.

Yes, that’s right – a whole hour with the bearded one! While the release doesn’t say exactly what the meeting will cover, Liberty happily explains that Branson has recently started a new venture called Virgin Fuel, which has the stated ambition of investing around $1 billion into alternative fuels over the next four years.

If Liberty could get a slice of that, it would really grab the attention of the market.

Of course, there’s no guarantee that Branson will invest. There’s not even a guarantee that the meeting will take place, although we’re sure Sir Richard would run a very efficient appointment book.

What Liberty is trying to do is bask in the global recognition of Brand Branson. And why not? We’ve seen a number of instances where the reflective glow from a global investment giant has rubbed off on a small company.

Earlier this year, we told you about Zhao Danyang, who bought a lunch with Warren Buffett in a charity auction back in June. But before the lunch, Zhao told the media he would offer Buffett a stock tip of his own: a little-known Chinese retailer called WuMart.

Chinese investors seized on Zhao’s comments and immediately started buying the stock. By the time Zhao returned to China, shares in WuMart had climbed 25%, increasing the value of Zhao’s personal stock holdings in WuMart by about US$16 million.

Another Chinese firm to benefit from Buffett’s endorsement is suit company Dalian Dayang Trands Co. Earlier this year, Buffett mentioned he wears the company’s suits and praised them as “wonderful”. The stock is up 261% this year.

Unfortunately, Liberty’s Branson brag hasn’t had quite the effect it might have hoped – their shares fell almost 9% yesterday from 23c to 21c.