CTS - Contact Resources

[elcruzy]

i'm still firm about my original statement before that this company is well undervalued.

regarding the announcement however its not 'standout' news with the best thing being that it is a Extremely shallow deposit and mining should be cheap and easy. facilities close by also help.

the thicknesses are just a bit skinny to me and CTS has only 20% the Corochapi deposit is still the money make in my opinion - real news about that will push the SP up.

 

[Sean K]

Approaching resistance at 55 cents, and maybe be out of downtrend having found very good support at 50 cents. Looks to be limited downside chart wise here, unless it breaks down through that support, of course. Worth watching closely for a break up IMO.

 

[insider]

Approaching resistance at 55 cents, and maybe be out of downtrend having found very good support at 50 cents. Looks to be limited downside chart wise here, unless it breaks down through that support, of course. Worth watching closely for a break up IMO.

Hey Kennas... have you ever considered writing a book... two more posts and you've broken the 5000 mark...

 

[jman2007]

Peru update announcement out today, looks like it sparked some interest. Hopefully can break through the $0.55 barrier, and at least hold there!

 

[Sean K]

Approaching resistance at 55 cents, and maybe be out of downtrend having found very good support at 50 cents. Looks to be limited downside chart wise here, unless it breaks down through that support, of course. Worth watching closely for a break up IMO.

This looks to have changed direction IMO. Breaking some short term resistance after finding a definate floor at 50 cents. Looks likely to move either sideways or back up from this position. Breaking 57 probably more likely to be up, but for confirmation wait for a higher low. Indicators look very good.

 

[YOUNG_TRADER]

Guys all I can say is like MTN, the asset is there, how long the market takes to realise this is another matter,

I'm looking to buy more at these levels as a re-rating will happen, right now at this mkt cap you can buy CTS, MRU or GBE, given MRU has nothing but dirt and Insto backing, GBE has a greenfields discovery and CTS has a high grade JORC'd deposit I think I know where my money is going

Yeah Kenna, does look to be heading North, but its so so undervalued its not even funny,

Just realised I haven't done one of my trade mark valuations for CTS, will do one when I get a chance,

I think mkt will still wait for something like a takeover offer before it pays up properly just like MTN,

I think though its about time that an Insto got on the registry, I mean if you look at MRU there were 4 Insto's on the registry, 4! and they have dirt, promissing dirt at that, but dirt nevertheless,

With the recent placements at 50c and option exercise the company should have $10m minimum for an aggresive drilling campaign

Like I said, I'm holding a large parcel and waiting patiently

 

[OK2]

Looks like the YT share followers just pushed CTS SP up to .615, just an observation.

I follow YT comments quite closely and there are definately a lot of followers who buy up on his posts. Must complement the guy for the respect he is earning, you may want to consider becoming a broker!

 

[ta2693]

Just some personal view about CTS, if you want to jump on CTS, you have to pay about 30% premium compared to the price 3 days ago. I think it is a little bit late. Besides U sector is not hot anymore. It is very hard to make investos and ordinary investors excited by Uranium right now other than YT's blind followers.

 

[Sean K]

Just some personal view about CTS, if you want to jump on CTS, you have to pay about 30% premium compared to the price 3 days ago. I think it is a little bit late. Besides U sector is not hot anymore. It is very hard to make investos and ordinary investors excited by Uranium right now other than YT's blind followers.

ta, yes, YT's 'blind followers' may follow if he produces some detailed analysis here. Such a shame that this has occurred IMO. YT has been on this for quite some time. In regard to the uranium sector, I agree, not the flavour of the month, so perhaps a good opportunity to critically analyse something out of flavour in a sector out of favour.

TA wise, looks OK short term, and I haven't factored in any jump today after my previous post.

PS, perhaps the market has responded to my TA? LOL

 

[ta2693]

ta, yes, YT's 'blind followers' may follow if he produces some detailed analysis here. Such a shame that this has occurred IMO. YT has been on this for quite some time. In regard to the uranium sector, I agree, not the flavour of the month, so perhaps a good opportunity to critically analyse something out of flavour in a sector out of favour.

TA wise, look OK short term, haven't factored in any jump today after my previous post.

PS, perhaps the market has responded to my TA? LOL

Technically, it fits my criteria to buy, but I know who is buyer (probably YT's follower). I think there is more wisdom on the seller side. So I am still out.
But the momentum is very strong. If you want to do intraday trading, I think that is the time to punt.

 

[YOUNG_TRADER]

Just some personal view about CTS, if you want to jump on CTS, you have to pay about 30% premium compared to the price 3 days ago. I think it is a little bit late. Besides U sector is not hot anymore. It is very hard to make investos and ordinary investors excited by Uranium right now other than YT's blind followers.

I doubt it Ta, as Kennas said I've been holding CTS for 2 months now, so nothing new here,

But the company has continued to deliver results at its Kyrgyzstan project (which I really like) and has raised $7.5m in cash meaning they are well funded,

 

[kitehigh]

Yes It is nice to see the jump up in price today. I have been holding for a few months now and reminds me of the challening period last year when I brought into a number of companies only to have to weather the storm for a few months. But patience was rewarded with over 200% returns on 2 of my companies. Just wish I could have been a bit more patience with TZN and EQN, would have made alot more money if I had.
I think patience will again be the key for a good return on this company.

 

[moses]

This isn't exactly new news, but it didn't get a mention on the thread...

<snip>

Australian resources company Artemis Resources Limited (“Artemis” or “the Company”) has acquired another significant equity stake in a fellow resources company, following the execution of a placement agreement with Contact Uranium Limited (“Contact”) (ASX: CTS) that will see the Company take 5,000,000 shares (at A$0.50) and options in Contact, for a consideration of A$2.5m.

Following this transaction Artemis will hold approximately six per cent of Contact.

Contact Uranium Ltd is an Australian-based exploration company with a portfolio of exceptional uranium projects in Peru, Kyrgyzstan and Western Australia.

Contact’s most advanced project is the shallow, high grade Corachapi uranium deposit in Peru, which has a JORC compliant Inferred Resource of 9.2 million lbs of U3O8 – with an in situ metal value in excess of A$1 billion. Contact recently announced exceptional results from radiometric surveys over its Peruvian licenses, identifying anomalies that demonstrate potential to significantly expand the resources at Corachapi and at its second Peruvian project, Kihitian.

During the third quarter of 2007 Contact anticipates commencing an extensive drilling program to enhance and increase this known mineralisation at the resource (refer Figure 1). In the Kyrgyz Republic Contact’s operating partner is drilling its Kamushanovskoe uhas recorded significant anomalism - maximum value of 0.287% uranium over 0.5m.

<end snip>

 

[ubid]

I Know of a few broking firms in Perth are picking this up also, should be a good week ahead.

Still very cheap in my books, YT when is your valuation coming???

 

[YOUNG_TRADER]

Hey mate,

Re valuation, put it this way, today CTS have announced 11m lbs of Uranium JORC, takeovers were being done at $15lb but the last few have been as high as $30lb

11m lb's U @ $15lb = $165m = $1.20

11m lb's U @ $30lb = $330m = $2.40

As I have always said this company will get a takeover offer at these levels, its another MTN waiting to happen mark my words

 

[Sean K]

This looks to have changed direction IMO. Breaking some short term resistance after finding a definate floor at 50 cents. Looks likely to move either sideways or back up from this position. Breaking 57 probably more likely to be up, but for confirmation wait for a higher low. Indicators look very good.

Might pause around these levels under 65 resistance, but looks like momentum definately on the up to push it through eventually. I think breaking through 65 will definately be the end to the sideways movement even though all time high 70ish will also be resistance. Looking good atm, but of course anything can and will happen.

Good break though 55 in retrospect.

 

[insider]

Hey mate,

Re valuation, put it this way, today CTS have announced 11m lbs of Uranium JORC, takeovers were being done at $15lb but the last few have been as high as $30lb

11m lb's U @ $15lb = $165m = $1.20

11m lb's U @ $30lb = $330m = $2.40

As I have always said this company will get a takeover offer at these levels, its another MTN waiting to happen mark my words

yay... This company finally went up... I bought some of these in April right before the correction began at about 62 cents with my Birthday money... And yes we are onto a good thing

 

[greenfs]

Yes It is nice to see the jump up in price today. I have been holding for a few months now and reminds me of the challening period last year when I brought into a number of companies only to have to weather the storm for a few months. But patience was rewarded with over 200% returns on 2 of my companies. Just wish I could have been a bit more patience with TZN and EQN, would have made alot more money if I had.
I think patience will again be the key for a good return on this company.

I am fully expecting the sp to run towards its true current value of $1.50 within the next 6 months as ann re Peru resource continue to happen. This opinion is based upon all info freely available on the company's website and herein.

In addition, I note that I understand that a recent change within senior management has probably assisted the company in moving forward more quickly than may have been the case in recent times.

Hopefully, a takeover can be avoided so that even greater shareholder value can be achieved through commencement of mining in early 2008. If this occurs, a higher long-term sp of $5 is a definite possibility.

 

[jman2007]

Interesting article in the WA newspaper from Saturday, predicting that many uranium stocks that have been on a slippery slide recently will bounce back. Investment bank UBS particularly bullish in their outlook for the price of uranium, tipping it will hit $200/lb next year.

I quote from UBS spokesperson: "Production problems from primary producers continue to underscore the prospect for continued market imbalances for the next several years".

Also good to see CTS advancing with their projects in Kyrgyzs with JORC figure out today, thay may have the jump on Monaro now. Have to agree with YT about CTS being currently undervalued, but for me the real key with this company lies in Corachapi.

 

[YOUNG_TRADER]

CTS looks to be begging to break upwards past 65c and then finally 70c after that its blue blue sky, or is that yellow sky? :

Has been along time coming IMO,

About 2 weeks ago when CTS came out with its Kyrgyzstan drilling I thought wow I can't believe the mkt doesn't like this,

You see the problem with CTS is that the market is ill informed, just like it was with MTN, but a takeover offer sorted that out,

Corachapi is worth at least $1 CTS fully dilluted based on a take over per lb of $15/lb

Now over at Kyrgyzstan, the company has alot of 1-2m intersections grading 0.1%, too small widths you say? Well given that all of the mineralisation is within 6m of surface you could just go out there with a bunch of dozers and take the top 6m's of dirt and process it,

I'd much prefer that sort of project vs the Nambian style 20m grading 0.02% U thats about 50m down!

Give me high grade near surface ore anyday!

Mark my words CTS is still undervalued and should be at least $1.25 based on peer comparisons!