Australian (ASX) Stock Market Forum

BMN - Bannerman Energy

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ekman said:
I had read an article by fProphets (i may be wrong as i am not a 100% sure on the name) where they said the stock was around $1.10 - this was when the sp was around 60c
I may have the wrong analyst
Click to expand...

The very first research report was done by Carmichael on the 04/07/05 where they valued the stock at $3.00. This was made before the share split. At current prices the shares would be trading at $4.695 if the share split didnt go ahead. The share split is all history now but it does confuse some people when they look back on the price history.

The next research report was done by Fat Prophets on the 30/08/06. They recommended a buy at 67.5 cents. This was recommended after the share split. So on the old valuation they recommended a buy at $2.025

Carmichael then put out another report on the 25/09/06.

They put out a recommendation when the share price was at 1.10. This may be where your getting confused. They predicted over a 6 month period a target of $1.60. They have reached this target.

Fat prophets then put out another report on the 08/11/06 where they recommended that their members "hold" Bannerman. The shares have since hit a high of $1.795 and are trading steady above the last break through level of $1.50. They are consistantly threatening their high of 1.795 and I think its only a matter of time untill we see a $2 stock. It wont be long IMO.

Bannerman is heavily backed. Lots of support when they fall into the 1.50's. I think tomorrow we can see them back into the 1.60's sp. Results are due soon and there would be a number of investors not wanting to miss the results.
 
I have to say, its one of my favourite stocks. Was aware of this stock back in March and bought a bit of it back then. Waiting anxiously for the results which will give an indicxation at what sort of company we are looking at....support for this stock seems to indicate they might be onto something. Lets hope there are no disappointments in the results. Its still early days with exploration for this company so it'll be interesting what happens next 12 months.
 
Hartleys believe BMN are still cheap compared to their peers when estimating off a 50MT resource at 0.035%. You have to remember that the possible resource is estimated at 50 to 200MT..and could be at higher grades. Its looking good fellas.

"Though BMN’s share price has appreciated significantly during this period, we do not believe it is overvalued when taking into account the potential size and quality of Goanikontes as well as the exploration potential for Swakop River. Using the indicated strike extent of the mineralised alaskite at Goanikontes combined with the drilling to date and using the Rossing and Valencia deposits as a reference, we believe the potential for BMN to define a 50Mt – 200Mt resource at Goanikontes at approximately 0.035% U3O8 is not unrealistic."

"For comparison purposes, we have assumed Goanikontes has a 50Mt resource at 0.035% U3O8 for 38.6mlbs U3O8. Bannerman’s share of this resource would be approximately 30.9mlbs. Using the BMN closing share price as at 15 November 2006 of $1.61, the Company has a fully diluted market capitalisation of $219.6m. This equates to $7.12/lb U3O8 (~US$5.45/lb). This compares to a Hartleys estimated peer average of approximately $8.06/lb (~US$6.17/lb)."

Then I like this part of the article

"Whilst the Swakop River project has received a lot of attention due to its proximity to Langer Heinrich, it is still at an early stage of exploration. The first pass aircore drilling program is currently underway with results not due until late December 2006 or early 2007. Given the proximity of Swakop River to the Langer Heinrich operation, ifthe project was to host an economic deposit, we believe BMN is unlikely to construct its own uranium processing plant. We think that BMN is more likely to process the ore through Paladin’s plant, or sell the deposit to Paladin, though any agreement would be dependant on Paladin’s plans for the Langer Heinrich plant. If BMN chose this path, it would significantly de-risk the project by reducing capital expenditure and enabling access to early cash flows."

Keep an eye out for the joint venture once they confirm uranium within the elpse channel.
 
The link is above..I posted it. Go two posts up. They dont put a definite valuation. They just believe BMN is reasonably priced compared to its peers when they estimate the price off the minimum amount of uranium they believe they could have.

BMN are drifting downwards atm though. Impatience is getting the best of a few investors.
 
Patience is a virtue in this industry......results should be available this month. Banners could be a sleeping giant. Thanks for the link to the report. The selling is by speculators. Those in the know are holding on for the long run. Just don't lose your nerve.....I've had this stock since it was around 25c...
 
Dont worry my nerve with this is rock solid...ive taken profits along the way..letting the rest run now for the long term. If I sell I have to pay too much tax so I would rather hold for an extra 4 months anyway. Ive been holding since 47 cents pre share split.
 
You've done well. Its identifying those stocks before anyone else does that is the trick. Once the punters get in its time to move on and find another story. With this one those its still very early stages so its worth holding on. I'm with you I have to hold till next year for tax reasons.
 
you have also done very well :)

If I was going to place bets I would place bets on the results being good. Historic drills allready have the answers. Its the waiting game now and some people cant play that game.
 
Thanks Chris, as a newbie the report has saved many more hours... apart from the hours I have already done to begin investing in U.. :)
 
No worries guys. I always liked OMC and UNX also..but I could never put all my money into just uranium stocks. I currently hold BMN an ERN. Good luck to all..the uranium sector will remain strong into the future :)
 
After so many days of retracing..they dont miraculously bounce..This is just my opinion but I bet some insiders know something. Results are due around this time.
 
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