CTS - Contact Resources

[nizar]

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!

I would have to buy this when it closes above 65c.

Theres significant resistance at 65c as its failed there 4 or 5 times in the past 12 months.

The question is 2mrw will it get shut down or will it gap up and run like a champion.

I'll be waiting.

 

[YOUNG_TRADER]

I forgot to add that as with Corachapi, CTS has now acquired 100% of the Kyrgyzstan projects and just released a JORC 2.079Mt@0.037% U3o8 as a first pass JORC from very limited drilling,

If you check the assays most were 0.1% U so I expect the grade to go up as should the tonnage,

From my estimates they have 4 areas, each is 3.5km's x 0.5kms x 2m(avg intersection) = 10Mt's @0.1% U

4 potential deposits = Could be 40Mt's @0.1% U = 88M lb's U

Even if they only firm up 1/4 of this = 22M lb's U! @ $15/lb = $2.75c more value to CTS

So you can see why I constantly compare CTS to MTN

 

[YOUNG_TRADER]

I would have to buy this when it closes above 65c.

Theres significant resistance at 65c as its failed there 4 or 5 times in the past 12 months.

The question is 2mrw will it get shut down or will it gap up and run like a champion.

I'll be waiting.

Gee Niz, you've gone totally techie, no fundamentals play into your decisions anymore ? ? ?

What happened to the good old days of EVE? ?

Even if it fails tomorrow it won't change my mind one bit on the fundamentals

 

[jtb]

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???

Hogans had a spruik on them in the local sunday rag too (weekend just gone) which seems to have added to the renewed enthusiasm from Monday.

Looks interesting

 

[nizar]

Gee Niz, you've gone totally techie, no fundamentals play into your decisions anymore ? ? ?

What happened to the good old days of EVE? ?

Even if it fails tomorrow it won't change my mind one bit on the fundamentals

Bro it was EVE, OMC, CBH, KZL, ZFX, OXR, i knew them all back to front :

Not anymore though, im thinking for the future, i dont wanna spend time doing research. So now i just trade the price action, doesnt matter to me (nor should it to anyone) if there are fundamentals behind share price appreciation or not. As long as the sp goes up you make money.

Its nice to find value but you know how the market works. Some companies stay undervalued for ages, and others just keep shooting up from overvalued to even more overvalued.

I just take this approach now because it works for me, and is much more time efficient. Im not gonna have much time to do company research in the future and i want to design a mechanical system that runs in the background.

And YT if you are interested in a job at Goldman Sachs, PM me. Iv got connects

But different approached work for different people. Your fundamental analysis is tops, and works for you (clearly).

HAve you got the Porsche 911 yet??

Anyway i bought some CTS this morning at .67. Sell side thin on this one

 

[YOUNG_TRADER]

Hey Niz,

Glad to have you aboard, I'm surprised that you didn't wait for a break above 70c, given twice before that was resistance as well,

Re Job Offer, unless the salary has SIX ZERO's on the end of it no thanks, I did my time in Shawshank 5 years ago as an Law Intern and I ain't going back

Re car, not yet, torn between M3, 911 and Maserati 3200GT, decisions decisions

Whats your breakout target for CTS?

Bro it was EVE, OMC, CBH, KZL, ZFX, OXR, i knew them all back to front :

Not anymore though, im thinking for the future, i dont wanna spend time doing research. So now i just trade the price action, doesnt matter to me (nor should it to anyone) if there are fundamentals behind share price appreciation or not. As long as the sp goes up you make money.

Its nice to find value but you know how the market works. Some companies stay undervalued for ages, and others just keep shooting up from overvalued to even more overvalued.

I just take this approach now because it works for me, and is much more time efficient. Im not gonna have much time to do company research in the future and i want to design a mechanical system that runs in the background.

And YT if you are interested in a job at Goldman Sachs, PM me. Iv got connects

But different approached work for different people. Your fundamental analysis is tops, and works for you (clearly).

HAve you got the Porsche 911 yet??

Anyway i bought some CTS this morning at .67. Sell side thin on this one

 

[j4mesa]

Hi YT and Niz,

Either type of trader you are, IMHO the more you know the better off it is.......

It depends on the circumstances that you are having, in Niz case , he might be working while trading , therefore techies suits him....

However,each has its own benefits and drawbacks......
For me, I more to the techies analysis, as the entry point,to the strong the fundies of the shares I wanted.......I used to be fundy trader but now I am mixed of both.....

 

[ta2693]

I still doubt who is buying cts. But I think they are not longterm investor and can not be sophisticated trader.
There is a share call ARV available on market.
ARV has 500000 shares and 500000 options of CTS
The market value of 3.5m+ and 2.5m+ according to current CTS market price 73c for head, 52c for option.
That made up of 6m in ARV
ARV's market cap is only 8m.
If I were the trader going to hold CTS for longterm gain. I will choose ARV as vehicle. But ARV is down 1.56% today.
So, I doubt the buyer is for longterm and for value. It is more likely to be momentum trader from my point of view.

 

[YOUNG_TRADER]

I still doubt who is buying cts. But I think they are not longterm investor and can not be sophisticated trader.
There is a share call ARV available on market.
ARV has 500000 shares and 500000 options of CTS
The market value of 3.5m+ and 2.5m+ according to current CTS market price 73c for head, 52c for option.
That made up of 6m in ARV
ARV's market cap is only 8m.
If I were the trader going to hold CTS for longterm gain. I will choose ARV as vehicle. But ARV is down 1.56% today.
So, I doubt the buyer is for longterm and for value. It is more likely to be momentum trader from my point of view.

Momentume traders? I doubt it Ta, when it was 60c you said

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.

Its good to play devils advocate and to have arguments for and against etc etc, but surely you must now see that this run up is not just my blind followers, I honestly think that its not just momentum trader either,

Intersuisse and Warrick Grigor have done research reports on CTS and both had it as they're favoured exposure to the Uranium market,

Also CTS have no real Insto's on the registry, compared with something like MRU which had 3-4 and were nowhere near as advanced as CTS,

I know that 2 months ago my Pato's and Hartleys brokers didn't really know about CTS, now they do,

I'm not saying this run will continue, I hope it consolidates,

But I have been saying that CTS (like MTN) was far far to cheap on an EV comparison to its peers and now is being re-rated, good luck buying at 60c my friend

 

[ta2693]

Momentum traders can push the price up as well, no matter 60c and 70c. The only difference is they will sell and drive the price down as quick and they push it up. But it does not matter, ppl who long at 60c have made some money.

My argument is
Given the value of CTS is true, why they do not buy ARV which is obviously better in value than CTS.

Logically, the answer is either CTS's value is not true, or the buyers are unsophisticated.I can not argue with you on CTS' value. I am not prepared to do that. So I think the buyers are only traders for momentum.

 

[YOUNG_TRADER]

Momentum traders can push the price up as well, no matter 60c and 70c. The only difference is they will sell and drive the price down as quick and they push it up. But it does not matter, ppl who long at 60c have made some money.

My argument is
Given the value of CTS is true, why they do not buy ARV which is obviously better in value than CTS.

Logically, the answer is either CTS's value is not true, or the buyers are unsophisticated.I can not argue with you on CTS' value. I am not prepared to do that. So I think the buyers are only traders for momentum.

Mate companies that hold shares in other companies NEVER trade at fair value,

Cases TAS holding EDE
JRL holding EME
MEP holding multiple companies

 

[juw177]

ta2693, so your argument is that just because one company holds shares in another company, and they are both young in the resource sector, they should be treated the same?

 

[YOUNG_TRADER]

I still doubt who is buying cts. But I think they are not longterm investor and can not be sophisticated trader.
There is a share call ARV available on market.
ARV has 500000 shares and 500000 options of CTS
The market value of 3.5m+ and 2.5m+ according to current CTS market price 73c for head, 52c for option.
That made up of 6m in ARV
ARV's market cap is only 8m.
If I were the trader going to hold CTS for longterm gain. I will choose ARV as vehicle. But ARV is down 1.56% today.
So, I doubt the buyer is for longterm and for value. It is more likely to be momentum trader from my point of view.

Also why did you think ARV's market cap is $8m?

They have 51m shares on issue listed and unlisted,

Even at current price of 36c = $18m Mkt Cap

So I guess your whole theory was wrong as it was based on a miscalculation

 

[Sean K]

Given the value of CTS is true, why they do not buy ARV which is obviously better in value than CTS.

ta, can you expand on this a little bit more please? Sounds like an interesting premise to me. I have seen companies with investments in others trade way under a valuation like you propose. Not sure exactly why. Might be leverage, or influence over the project, or their other investments being cr@p. Perhaps that's it. Might need a total valuation on ARV to be done and then compare it.

 

[ta2693]

Mate companies that hold shares in other companies NEVER trade at fair value,

Cases TAS holding EDE
JRL holding EME
MEP holding multiple companies

Ok, I understand. I just feel strange why companies that hold shares in other companies have to be trade at high discount.
In long term, there is no difference.

 

[ta2693]

Also why did you think ARV's market cap is $8m?

They have 51m shares on issue listed and unlisted,

Even at current price of 36c = $18m Mkt Cap

So I guess your whole theory was wrong as it was based on a miscalculation

I read it from etrade website. You can check it if you have etrade account. if it is the case, etrade mislead me.

 

[ta2693]

ta, can you expand on this a little bit more please? Sounds like an interesting premise to me. I have seen companies with investments in others trade way under a valuation like you propose. Not sure exactly why. Might be leverage, or influence over the project, or their other investments being cr@p. Perhaps that's it. Might need a total valuation on ARV to be done and then compare it.

Check ARV's announcement on 10/07/2007 Artemis will receive 5,000,000 ordinary shares plus options for a consideration of A$2.5M.

 

[ta2693]

ta2693, so your argument is that just because one company holds shares in another company, and they are both young in the resource sector, they should be treated the same?

Not really.
My argument is Same shares, no matter who is holding it should be treated the same. If one is substantially overvalue the other, someone must have payed too much for being impatient.

 

[jtb]

ARTEMIS TAKES SIX PER CENT STAKE IN CONTACT URANIUM
FOLLOWING A$2.5M PLACEMENT
Key points:
• Artemis Resources agrees to placement in Australian uranium company Contact Uranium
Limited (ASX: CTS) equal to around 6% of Contact share capital;
• Artemis will receive 5,000,000 ordinary shares plus options for a consideration of A$2.5M;
• Contact has exposure to promising Uranium Projects in Peru and Kyrgyz republic; and,
• Artemis recently reached an agreement with South Australian focused Apollo Minerals
Limited (Apollo) to sub underwrite up to A$4,000,000 of the minimum A$8,000,000 to be
offered in a proposed Initial Public Offering (IPO).

 

[YOUNG_TRADER]

I read it from etrade website. You can check it if you have etrade account. if it is the case, etrade mislead me.

Yes but Etrade, Commsec etc Don't include unlisted shares in their Calcualtion


Fact: ARV has 51m shares on issue, at 36c = $18m mkt Cap

Fact: ARV holds 5m shares + 5 m 50c options not the listed 20c kind = at 73c $4.8m value,


I'm not sure how much cash or other assets they have, but the fact is they hold just under $5m worth of CTS and their Market Cap is $18m, so there is a $13m shortfall

But hey if your CTS play is ARV good for you