NMR - Nimrodel Resources

[Stinger]

Not sure if anyone watches NMR but has gone into a trading halt today pending the release of an announcement of a transaction.

Very thinly traded stock so will be interesting to see what happens to the price when announcement is made, especially if it relates to uranium which has all the stocks moving today.

 

[Stinger]

NMR up 25% after trading halt. Announced that it is acquiring significant uranium tenements in Krygzstan. Still very low volumes traded though.

 

[YOUNG_TRADER]

I liked NMR, chairman is same as over at JMS, tried to get in on float but with only 15m shares being issued ALL UP I got zilch,

Anyway I like this deal but its far too dillutive, from a starting point now of 15m shares they will have to issue 50m sahres to acquire company + 15m 30c options (in the money) + do a cap raising of 17m shares at 30c

ie 15m + 50m + 15m +17m = almost 100m

100m at 50c = $50m mkt cap

Not that cheap anymore, also the company they are acquiring "Linia Prava" has been "actively exploring" those 4 licences for 2 years now, you'd hope they've found some confirmation of U mineralisation since then

 

[Stinger]

This is starting to frustrate me. Everytime the price looks like rising a sell order comes in for about 40-50k of shares at 50 cents. There is a very small depth on the sell side yet people seem to be happy keeping the price at 50 cents.

Been happening the last few days.

 

[beatle]

NMR is a very lightly traded stock, that has suffered the consequence of a foray into Kyrgyzstan in recent years which has recently gone through the washer with a civil war and the falling out of the government. NMR shares got hammered and had little cash to survive, with the share price settling sub 2 cents. It has recently gone through a relatively small issue to raise cash, at 2 cents, now its up and running again, in a small way, but just the past day it has shown some strength in the Bid side, and today its up 76% to 6 cents (ok there is now an Offer at 5.9 cents, lol).

NMR is a small company with only 168 million shares on issue, and low market cap. I wouldn't mind betting that todays action, the first real action for years, is a sign that something is about to happen, positively, in the company, but I know nothing! I only noticed the price move because I bought a lot of shares earlier and have got them filed in my bottom drawer! My bottom drawer has got some interesting old share investments in it - no its not bottom of the harbour, lol!

 

[beatle]

NMR remained one of the few companies not to drop deeply into the red yesterday, and shares WERE traded! And on Monday even trading took place in the options (for the first ever recorded on-market trade!). Something tells me that something is happening with the company, not sure what though (except since the share price has moved from 2 cents to 6 cents on relatively heavy (relatively for NMR that is!) volume its likely to be positive, perhaps a new deal?).

 

[beatle]

NMR took a bit of a rest the previous week leading up to the AGM and now is back moving up ever so slightly. The AGM has resulted in providing considerable incentive for the MD to bring on a new project for the company and I understand that there is a possibility of that happening subject to ongoing due diligence etc. Of course until the announcement has occurred that its signed up this is just speculation and any purchase of shares is a real spec punt - BUT the rewards of it coming up with a significant deal would likely turn the company around big time, as it could easily double with the right announcement - its shares on issue remain very low, with 168 million and very low market cap of $8.5 million, thus price multiples are possible!

Its a very illiquid stock and therefore any slight change in desire of punters seeking to get an exposure is easily translated into share price movement, and thus any significant trading activity is easy to notice!

NMR has recently done a smallish rights issue and now has got around $1 million in the bank so it can go some time without seeking additional funds from shareholders.

 

[beatle]

Finally some action in NMR, probably related to its recently announced coal acquisitions in Botswana and Tanzania. Current prices remain excellent for a speculative punt on NMR doing an "Coal of Africa" type deal. Since CZA is worth around $900 million, its a fair risk to reward for NMR (having a market cap of around $9 million currently) IMO!

Price has broken out at 7 cents (up 32%) on relatively large volume for such an illiquid stock as NMR (just over 1.5 million shares traded).

 

[beatle]

NMR share price settled back to 6.0 cents after going for a slight "run" up to 7.4 cents last week. Now it looks like there is another "nibble" around 6.5 cents, and the Notice of Meeting is now out regarding its African coal acquisitions. I can see NMR lying low for a while till the final due diligence and shareholder approvals are passed, then its likely to make a move upwards - therefore.......!!!

Therefore its a strategic move to start slowly accumulating now if you haven't already got your fill! I have started to accumulate and will continue. There are also some very soon to be expired options, NMROA, exercisable at 10 cents on or before 30th April, but no market exists. IF the NMR share price was to move towards the 10 cents mark within the next month those options might be an interesting play as well. But that of course is for the not faint hearted, if the share price starts to move!

 

[beatle]

Its taking a while to build momentum, with little trading in the stock, but there has been a noticeable increase in bidding support, with a slight increase in share price today. I would imagine that this will start to build as time draws closer to the Gen Mtg on 3 Mar 2011 at which shareholders are to vote on whether to proceed with a significant acquisition of coal assets in Africa!

 

[beatle]

NMR continues to build in buying support, but the lack of sellers is a problem to enable trades being executed. I think that sellers are reticent to sell when the prospects for a major re-rating of the stock is possible. Thus the share price will likely move up to a level where sellers won't feel as though they are getting rid of potential big gains.

 

[beatle]

NMR is a bit slow today, Monday, but some signs of interested parties pecking away at anything that is available below 8 cents.

Is there any followers of the stock here in ASF, if so, any thoughts about it? (My view is that its a rough diamond waiting to be found!).

 

[beatle]

NMR has opened with a flourish (relatively speaking!), the bidding looks strong, it has traded up slightly, and it seems there are some buyers wanting to tempt sellers to take the bait at 8.0 cents thereabouts - how long this will episode will last till it breaks above this I'm not sure, but I have no doubts that this episode is just a forerunner of a much bigger move upwards!
Is there anyone with a view on NMR? I would like to be able to talk with someone else on the subject rather than talk to myself (although i seem to get a lot more agreement when I am posting to myself, lol).

 

[beatle]

I'm not a chartist, and NMR has been a non-performer in the past couple of years when it comes to trading liquidity etc, but I wouldn't mind getting a chartist's comment on NMR recent price/volume movements - from a non-subtle observer of daily trading patterns seems to me that there is at least one buyer (or more than 1 with multiple bids) who is trying to corner the buying in NMR at the moment.
Anyone noticed it too, or can read the tea leaves to get a view of the charts?
Of course, with the company doing a U-turn from uranium in Kygyzstan to coal in Africa is obviously the reason why things appear to be changing for the better (Kygie has gone through a civil war in the past year if you weren't aware), but I have a feeling that the coal deal is more than a change of direction, its likely got some big potential ahead of it!
With only a couple hundred million shares on issue if the deal proceeds, the potential upside for NMR is huge, particularly if it manages to prove up anywhere near the 500 million tonne coal resource envisaged under the deal terms and conditions - it would likely push its market cap to way in excess of $100 - 200 million, thus putting the share price to multiples of its current price of 8.6 cents (equivalent to a market cap of 14 million!).

 

[KurwaJegoMac]

I'm not a chartist, and NMR has been a non-performer in the past couple of years when it comes to trading liquidity etc, but I wouldn't mind getting a chartist's comment on NMR recent price/volume movements - from a non-subtle observer of daily trading patterns seems to me that there is at least one buyer (or more than 1 with multiple bids) who is trying to corner the buying in NMR at the moment.
Anyone noticed it too, or can read the tea leaves to get a view of the charts?
Of course, with the company doing a U-turn from uranium in Kygyzstan to coal in Africa is obviously the reason why things appear to be changing for the better (Kygie has gone through a civil war in the past year if you weren't aware), but I have a feeling that the coal deal is more than a change of direction, its likely got some big potential ahead of it!
With only a couple hundred million shares on issue if the deal proceeds, the potential upside for NMR is huge, particularly if it manages to prove up anywhere near the 500 million tonne coal resource envisaged under the deal terms and conditions - it would likely push its market cap to way in excess of $100 - 200 million, thus putting the share price to multiples of its current price of 8.6 cents (equivalent to a market cap of 14 million!).

From what I can see from a charting perspective, the stock has had a break out on good volume, with supply being absorbed well. I'm opening a position in it today, although only risking a smaller amount than usual (about 0.5% of capital) as I see it as a bit of a risky play.

 

[KurwaJegoMac]

Not a lot of supply today at the right level - making it hard to accumulate a decent holding without pushing the price up on myself

 

[beatle]

Thanks KurwaJegoMac, greatly appreciate the post and company - I thought I had bad breath, lol!

As for your comments about pushing the price up, I agree entirely, its impossible to get a decent chunk of it now. Every trade seems to be pushing it ever higher. I am still biting away at it occasionally, but trying to accumulate a lot now is not going to be easy until someone decides that the level is acceptable for them to take some profits.

I note that NMROA also are traded but only 1 sell at the moment, at 4.5 cents and it expires in April this year, so maybe its another angle to consider - whilst there should be no time premium for that option, if the fully paids get taken up quickly to 12 cents plus then those options might be an opportunity too.

With regard to your comment about it being a risky play I agree from the point of view that this is not running on any news other than it acquiring coal assets in Africa, but if you read the information on the database they are acquiring of 75 holes drilled above 200 metres, with potential 500 million tonne resource, then I would think that a market cap of around $15 million is a reasonably small punt for what could a huge reward in time!

 

[KurwaJegoMac]

Thanks KurwaJegoMac, greatly appreciate the post and company - I thought I had bad breath, lol!

No worries! Thanks for alerting me to this stock with your post

With regard to your comment about it being a risky play I agree from the point of view that this is not running on any news other than it acquiring coal assets in Africa, but if you read the information on the database they are acquiring of 75 holes drilled above 200 metres, with potential 500 million tonne resource, then I would think that a market cap of around $15 million is a reasonably small punt for what could a huge reward in time!

Regarding the risky play, I just wanted to clarify that I view it as a risky play from a T/A perspective. I have no knowledge of the stock's fundamentals, I only trade from a pure T/A perspective.

Why I view it as a risk play is that it is fairly illiquid relative to my usual plays and there is a lot of resistance around the $0.10 mark in the past. There will no doubt be a lot of long term holders fed up with waiting and will want to offload at the prices they bought them for. What i'll be looking for is for the stock to gap up through the 0.095-0.10 support level. If I see that occur i'll most likely be accumulating even further. If it remains stagnant i'll bank profits and wait for it to either break 10.05 and buy in again or leave it alone if it doesn't break.

Note: This is not investment advice, this is just a plan of what I will be doing. As always, DYOR.

 

[beatle]

I'm very happy to have the company KurwaJegoMac, and your TA commentary is most appreciated, as I really follow the fundamentals and not the charts and its good to that added element of TA consideration.
In the regard to your TA analysis, you refer to the 10 cents level being the big initial test with possible tired holders getting out at that level - i have looked at the weekly chart and unless I have read it wrongly, I would have thought that the big test was to push through 8 or so cents, as from that weekly chart it seems that was the level that held up previously? From about 12 cents down to 7.6 cents it seems like it was a straight vertical descent? Am I missing something, or interpreting it wrongly?

 

[KurwaJegoMac]

I've attached a chart showing how I came about my analysis (it's very rough as I'm in the office atm and had to rely on broker charts)

*****EDIT: Had issues adding the chart. Added it in the next post on the next page.

Anyway it's a 12 month weekly buy-low-high-close chart. The bit that is circled in orange is my concern. The red line at approximately $0.6 shows what I believe to be the main line of support from April to December while the blue line represents resistance. You can see that quite a few times the stock touched $0.1 or went through it, but it never stayed above $0.1 for more than a week.

There will be a few people who accumulated in that orange circle that will probably look to offload once they get near their entry point unless the stock rises exponentially and they're suddenly sitting on a gain.

Essentially, after about 7 months (May to Mid November), the stock couldn't stay above $0.1 despite numerous attempts. Therefore this will be a barrier to overcome in the future. So far the stock is breaking out very nicely on good volume. I think we're seeing supply being overcome in the last few weeks. I like how it looks and I've opened a position as a result. Would have preferred to catch it in late January, when the move first started - but better late than never

Closed at $0.09 today. Encouraging

Anyway that's my view and no doubt other chartists will look at it differently.