# The next big Resource Stock?



## Ken (15 November 2006)

Gday,

we have had PDN, ZFX, CDU, and a number of other big jump in resource stocks.

What is your team for the next penny stock to hit the lift.

And what is your tip for the next $20 plus resource stock...


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## Halba (16 November 2006)

well have a look at A-cap resources it has non jorc uranium of 75mT @ between 0.015% to 0.03% in Karoo sandstone in Botswana

Was explored and drilled by a who's who of resource companies in the 1970's, but was not developed. They hold an extensive array of tenements which have not been subject to modern exploration. Warwick grigor estimates the total potential to be many multiples of the above figure, as only one area has been tested. The uranium occurs in sandstones up to 10m thick, only 1m from the surface making it very economic. It is large tonnage uranium. Indeed african labour will also help, and it is also listed on the Botswana stock exchange so the locals can benefit.

ACB asx code

http://www.acap.com.au/

similar to an early stage pdn.

price is 85cps, and mkt cap is about $80M. Drilling has commenced, and it has a 10,000m RC drill program, with a bit of diamond drilling as well.


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## chicken (16 November 2006)

Ken said:
			
		

> Gday,
> 
> we have had PDN, ZFX, CDU, and a number of other big jump in resource stocks.
> 
> ...



KEN, look at SMM....and research it.....this will be the next BIG resource stock in VALUE.....Do your research.....


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## Out Too Soon (16 November 2006)

chicken said:
			
		

> KEN, look at SMM....and research it.....this will be the next BIG resource stock in VALUE.....Do your research.....




That rusty old barrow (SMM) has been well & truly pushed, wheras a-cap is something that came up in a scan I did yesterday although it would seem to have already done the bolt it seems relatively unknown. A missed opportunity!


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## Ken (16 November 2006)

acap i got told abot when they first floated.

silly me with egg on my face now.  they were 25 cents then... thought about it again at 34....  now look...

dont chase stocks is one of my rule sooo.. its just flipping the finger at me i guess


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## Out Too Soon (18 November 2006)

BSG, Bolnisi is well & truly known but next year they start producing gold & silver from one of their mines in Mexico. As long as the POG or POS (price of silver/gold) holds up the sp will take off. They're even going to start paying dividends.


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## Halba (26 November 2006)

i am long on BSG as well. thats a core stock. negligible cash costs make em super, and good exploration drilling.


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## dj_420 (26 November 2006)

Out Too Soon said:
			
		

> That rusty old barrow (SMM) has been well & truly pushed, wheras a-cap is something that came up in a scan I did yesterday although it would seem to have already done the bolt it seems relatively unknown. A missed opportunity!




Rusty old barrow?? i dont think you'll be stating that when JORC comes out. i think every one will be in for a huge suprise. maybe you should go back through reports and take a look at the grades on deposits that will be JORC by end of year.

in terms of undervalued uranium id say MTN is still undervalued. although it has had a good run from 75 cents to current sp.

zinc players will still have a good run over up coming weeks, KZL, ZFX, CBH. zinc is up along with copper on more supply concerns.

nickel is still under the spotlight with supply concerns. 

in terms of finding the next big stock, that is quite hard. the way i do it is to find companies that are undervalued for their resources and exp targets. and if you find an ann that a company has hit a huge resource just compare their market cap to other companies with similar deposits then you will have some idea of what their market cap should be.


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## Halba (26 November 2006)

what is the definition of "big"? Is it over  $1bn?


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## noirua (26 November 2006)

If a resource stock makes it to the ASX 100 it has reached the big stage, imho.

However, Woodside Lakes Entrance Oil ( Woodside Petroleum ), was a minnow in the 1960's and ever so gradually developed the North West Shelf discoveries. Aussie Governments pride and joy now, though once they wouldn't cough up a cent to help.

BHP started at Hummock Hill ( Whyalla ) and has built itself up over a very long period to one of the Worlds largest resource companies. Swallowed up some big companies during stock and resource price crashes. Disgorged OneSteel and thanked Hummock Hill by covering it in red iron ore dust.

So really it's a matter of what company hits pay dirt or manages to keep its stock held very tightly whilst making merger after merger along the way, lots of cash to develop, combined with good hands on management.


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## ts2000 (26 November 2006)

I reckon CAZ has a lot of potential.  I'm giving it 2 years to be a $6.00+.... Of course I could be overly optimistic but I like their outlook.


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## champ2003 (26 November 2006)

ts2000 said:
			
		

> I reckon CAZ has a lot of potential.  I'm giving it 2 years to be a $6.00+.... Of course I could be overly optimistic but I like their outlook.




Hi ts2000,

Can you back up your price forecast with any fundamentals? 

Champ2003


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## stoxclimber (26 November 2006)

This post is just asking for rampers...


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## imajica (26 November 2006)

KMN - Kings Minerals

San Anton + Kalman = company maker

DYOR


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## Halba (26 November 2006)

there is a difference between ramping and analysis. so yes some ppl might ramp on this forum. i think ts2000's post is a ramp as no factual basis for CAZ becoming a BHP

its possible another resource stock is TZN (big mine in algeria coming up)


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## ts2000 (26 November 2006)

I don't think CAZ will ever be a BHP.  I wasn't suggesting that.  My prediction is presumption based on past company performance.  Some people think it's a spec but other's think it's a long term option.  I just think it's a long term option.   It's not the only one around that could do well but it's almost the same position as Cudeco (is that what AMI call themselves now?) was before they hit the seam.  I did well out of that but I lost nerve at $3.50.  I just didn't have enough to take enough benefit from it.  Anyway, I degress, perhaps this post belongs in another forum.


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## nizar (26 November 2006)

ts2000 said:
			
		

> I reckon CAZ has a lot of potential.  I'm giving it 2 years to be a $6.00+.... Of course I could be overly optimistic but I like their outlook.




Ummm im just taking a stab in the dark here but could it be that you are overly optimistic because u hold plenty ?
Just a thought


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## nizar (26 November 2006)

dj_420 said:
			
		

> zinc players will still have a good run over up coming weeks, KZL, ZFX, CBH.




Agree   

What is the definition of big resource stock?

If its >$1billion, then my money is on CBH, due to increased earnings through their production pipeline and rising zinc spot price. Like iv said in the past, they should be trading on a earnings multiple more like KZL (~10x) than ZFX (~5x). 

If its >$5billion, then PDN.

If its >$500million, then OMC.

If its >$10billion, then ZFX. And soon.


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## ts2000 (26 November 2006)

Perhaps you are right in me being overly optimistic. But I am a small investor and   I don't have a large position.   I never put more in that I can afford to lose.  It's my holiday income.  If I make I take a break.

I agree about ZFX and OMC - good choices.  I have some of these too.  I never jumped on ZFX when I should have 

(Perhaps I should upgrade my compter - it just crashed  )


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## mildew79 (29 November 2006)

ts2000 said:
			
		

> I reckon CAZ has a lot of potential.  I'm giving it 2 years to be a $6.00+.... Of course I could be overly optimistic but I like their outlook.




maybe if they win their legal battle with rio. otherwise no chance.


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## MalteseBull (29 November 2006)

DYL or PDN

/ end thread


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## mildew79 (29 November 2006)

it is a much different market now for a penny hopeful than three years ago. newly developed companies shall be subject to much higher competition and become potential takeovers targets. pennies that do go nuts will mostly be due to new announcements / findings, something we cannot really predict at this time(however can still definitely profit from when the time arises).

what we do know:

zinc LME supply vols are exhausted and in an obvious downtrend. they will likely remain so until majority of newly developed mines commence production (until the end of 07 I'd say as an estimate). any mines currently producing shall be able to simpy name their price. you guys know who they are. equate an increase over the year to Zn @ US $3+ pound into the profits......

uranium is in the same boat, however subject to a little more politics. PDN likely to see a significant SP increase in near future.


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## petervan (29 November 2006)

eqn should be top 100 in 2 years


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## Halba (1 December 2006)

zn usd 3$$ thats a bit rich!


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## mmmmining (2 December 2006)

CMR
good management, good resources, U3O8, CU, Co, Ni, Pb, Ag, Au...

Another one could be: CSM
The Mn, Cr could be back in favor anytime. Ni is expanding. Have got hands in JML, VML to get Cu, Zn, Ag, and Sn covered, with Fe IPO...


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## chops_a_must (2 December 2006)

mmmmining said:
			
		

> CMR
> good management, good resources, U3O8, CU, Co, Ni, Pb, Ag, Au...
> 
> Another one could be: CSM
> The Mn, Cr could be back in favor anytime. Ni is expanding. Have got hands in JML, VML to get Cu, Zn, Ag, and Sn covered, with Fe IPO...



Wha? EDIT: Sorry, yes Cobalt and Manganese look good.

If nickle keeps going the same way, as it looks more bullish than zinc without the hype, then look at stocks like IGO, MCR or SMY even.

ZFX will be the next through $20. Massively undervalued.

Long term looking at Platinum though.

I'm no expert, just looking at fundamentals.


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## nizar (2 December 2006)

chops_a_must said:
			
		

> If nickle keeps going the same way, as it looks more bullish than zinc without the hype




You think there is "hype" in zinc stocks but none in "nickel" stocks?
Have a look at how some nickel stocks have performed this year.

In my opinion BOTH metals are being driven by fundamentals.


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## chops_a_must (2 December 2006)

nizar said:
			
		

> You think there is "hype" in zinc stocks but none in "nickel" stocks?
> Have a look at how some nickel stocks have performed this year.
> 
> In my opinion BOTH metals are being driven by fundamentals.



Yeah, they have out performed zinc stocks, but that's not what I'm saying.

What nickel pure plays are on the news each night like ZFX is? That was my point.

I agree, they are both being driven by fundamentals. But even on this forum, people are more interested, seemingly, on the zinc stocks, for whatever reason than they are on nickel plays.


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## haemitite (2 December 2006)

mildew79 said:
			
		

> maybe if they win their legal battle with rio. otherwise no chance.




even if CAZ win the legal value it is very doubtful that Shovelanna will ever get mined. It's stood untouched for years for good reason. CAZ has two big bets (1) that they win the legal case (2) BHP decide to convert a year old non-binding agreement into something more substantial.

But why would BHP replace their own low cost tonnes with expensive 3rd party tonnes?


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## nizar (3 December 2006)

chops_a_must said:
			
		

> Yeah, they have out performed zinc stocks, but that's not what I'm saying.
> 
> What nickel pure plays are on the news each night like ZFX is? That was my point.
> 
> I agree, they are both being driven by fundamentals. But even on this forum, people are more interested, seemingly, on the zinc stocks, for whatever reason than they are on nickel plays.




Maybe because of one of the market myths, the common thinking of the masses that "stock XYZ has gone up so much already, surely it cant go up anymore" ??


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## Fab (3 December 2006)

nizar said:
			
		

> Maybe because of one of the market myths, the common thinking of the masses that "stock XYZ has gone up so much already, surely it cant go up anymore" ??



Another good example of what you are stating here is PDN which I think will run further maybe like ZFX and for longer


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## Sean K (3 December 2006)

Fab said:
			
		

> Another good example of what you are stating here is PDN which I think will run further maybe like ZFX and for longer



Perhaps. If U3O8 keeps climbing like it does, and possibly go to $100+ where many analysts are pointing (sorry no ref) and if a couple of their projects develop and come through in smart time (like Kayelekera) then you'd have to be looking at this appreciating considerably. Just how much will depend on other projects (like the IUJV with SMM in Mt Isa) pending Labor policy change, and POU of course.


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## chops_a_must (3 December 2006)

nizar said:
			
		

> Maybe because of one of the market myths, the common thinking of the masses that "stock XYZ has gone up so much already, surely it cant go up anymore" ??



That is possibly the case. The fundamentals say otherwise though.


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## michael_selway (3 December 2006)

nizar said:
			
		

> Maybe because of one of the market myths, the common thinking of the masses that "stock XYZ has gone up so much already, surely it cant go up anymore" ??




"stock XYZ has gone up so much already, surely it cant go up anymore"

The above statement reminds me of the tech wreck, everyone keeps chasing the prices up no matter what, until the "bend at the end".

  thx

MS


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## Sean K (3 December 2006)

michael_selway said:
			
		

> "stock XYZ has gone up so much already, surely it cant go up anymore"
> 
> The above statement reminds me of the tech wreck, everyone keeps chasing the prices up no matter what, until the "bend at the end".
> 
> ...



Yes MS. I think there's just a few of us who went through this. Luckily I did not have much in the market then but still lost 50% probably. Holy goat, that would be a lot of money now! I'm even thinking of cashing in some managed funds now.


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## mmmmining (3 December 2006)

kennas said:
			
		

> Yes MS. I think there's just a few of us who went through this. Luckily I did not have much in the market then but still lost 50% probably. Holy goat, that would be a lot of money now! I'm even thinking of cashing in some managed funds now.




Ironically, I lost more than 50% by not owning any dotcom stock. I was a "value" investor. Anyone remember HIH, and ARL?


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