Hi guys,
Just a quick one to start the thread,
Here’s what I believe to be the next 2c-3c penny stock to run
It has all the hallmarks of the other penny’s
Its has 300m shares on issue, which mean at a price of 2.4c its Mkt Cap is a tiny $7.5m
So what does it have that may cause a trader based run/re-rating?
It has an option to acquire an Indian Iron Ore company which has an exploration project with a target 200Mt’s @ 60% Fe (See extract 1)
Now there seems to be a bit of uncertainty with respect to the target grade and I believe this is whats holding up the comany, (See rock chip extract 2 below) however even if the company end up with a smaller say 80Mt @ 60% Heamatite target (per Historical Govt records see extract 3) The Mkt cap would be $50m+ so the upside is nevertheless huge
This isn’t one of my usual fundamentally undervalued stocks etc, BUT its a very cheap penny stock that offers alot of upside potential and thus should be re-rated and capped at least $15m = 5c given the potential it has
If you see the list below alot of the specs that have run 100%-200%+ had little to know fundamentals, let alone the potential to acquire a large Fe target,
The closest match would be FDL, BUT I’M NOT SAYING WE CAN EXPECT THAT KIND OF PERFORMANCE, what I am saying is that FDL lay dormant at 1c for ages and then one day outline a 350Mt Haematite target and boom off it went, how long before NSL updates the market about its 200Mt Haematite target??
FDL ran from 1c – 15c (Iron Ore target near FMG)
HAO ran from 3c – 40c (Acquired Iron ore grounds)
GDA ran from 1.5c – 6c (Placement/SPP + Iron Ore projects)
GNL gapped up from 3c – 8.5c (Iron Ore projects)
EGO ran from 0.7c – 6c (few months back based on leverage to oil well)
BMO ran from 2c – 6c (Gold targets)
RSL ran from 1.5c – 3.5c (Uranium grounds)
ORO ran from 2c – 4c (Nickel?? Gold?? Not sure)
RCH ran from 0.6c – 5c (Not sure ?????)
RAU ran from 2c – 28c (rerating based on Cu/Au deposits)
IIG ran from 1.2c to 5.6c (Gold soils anomolies or something?)
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