One stock that is already undervalued in SRL. Straights have just about more money in the bank than their MC.
If they drop below $1.00 again, then it has to be bought up.
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I bought TNE purely driven by a newsletter, reading the profit margin, watching the technology stocks and seeing how TNE held up firm against all falling stocks. This is a bit thinking outside the box being a resource driven person. I also saw value rating of TNE has been done double the price of stock. I am watching its movement and sharing with you as well.
I was watching TNE ages ago, but dropped it to concentrate on junior resource explorers.
In addition to SRL, I'm adding PRU back onto the close watch list for any dramatic market correction. I think anything under a $500m mc is pretty cheap for a 300k ounce a year company at $1000 POG and less than $500 an ounce Capex. They could be generating $150m less tax and royalties, guess $100m profit. pe of 10 is $1b mc. pe 20 is $2b.
I think they will be taken over before then though.
SRL is getting close enough to $1.00 for me to enter, and buy more on the way down.
It has an NTA of $500m or so, and current MC is about $300m or so, check thread for my comments.
Technically, would love to see 50c hit and bounce to back up the truck, and this could happen if the world collapses as I expect.
My issue is that it has really CRAP projects other than it's coal and cash. REALLY crap! And management are CRAPPP!!
I'm buying here, sell at MAJOR resistance at $2.00.
Considering PRU again. Kinross took out Red Back for $7.1b and they are very similar companies with PRU probably 3 years behind and has maybe 75% of the potential. That means they should be worth close to $5b which is 5 x their current mc. If POG and market stays steady then it's a no brainer.