My pick 6:
Nickel is the metal I really like. I also like moly a lot, but nickel juniors have lower price to cashflow going forward.
FNI.to
FNI has a lot of nickel resource, but poor operation. FNI had huge intercepted of 2+% nickel at about 70m length and is trading at similar market cap of GCR.V, who intercepted 1+% of nickel at about the same length. Why? FNI had a great Jan, they PRed it, made people to believe it would continue. On earning release, it admitted the problems in Feb due to operational issues. Sounds like RNO Q3 earning last year. Look back, that was a great buying opp for RNO.
FNI is also a great take over target for companies like FNX or HBM.
BMC.v
BMC should be out of nickel hedge by the end of July and starts generating huge cashflow. Its huge Deacon resource should increase 08 production dramatically when it starts to mine it in Q3. All these are not reflected in the stock yet. It is trading at less than 2x next year's cashflow according to my calculation.
BMC is also a good take over candidate for its partner, SMY.AX.
Zinc should continue to rebound this year, China's zinc inventory is low so is LME.
BWR.to
Well covered on VMC, the cheapest zinc producer I can find. It should be a good take over candidate for companies like HBM, LMC and TCK.
HBM.to
Well covered on VMC. Very strong balance sheet, should command a premium of PE. The company should decide how to spend its huge cash soon. Buy another company, pay dividend, stock buy back or it will be taken over soon.
Copper
I believe copper companies are very undervalued compare to copper price. Since copper can be easily hedged, they are good leveraged buy out candidates.
QUA.to
The cheapest copper stock I can find.
TGB
Very cheap with strong moly by products. Very good balance sheet. Should be a good takeover target.
Buy cheap, undiscovered stocks!
Disclosure: I usually own the stocks I post the most. The more I discuss, the more shares I own. Do you own DD before placing the trades.
Please post stock symbols first in all your posts.
