I've seen a lot of undervalued stocks in my day, but this one beats them all.
Thanks to a tip from someone on the Investor Village RNO board I just bought some First Metals(FMA.TO or FSTMF).
Yesterday they reported a $2.1M profit for their first month of operation after declaring commercial production. Production should be higher in April, May and June. I am expecting a second quarter profit of about $8m or about .19 per share.
I thought that EZM, RNO, Lionore, Quadra and Capstone were undervalued. Quadra should have revenues of $800M with a market cap of $1.5B. Capstone should have revenues of $150M with a market cap of $350M. FMA.TO should have revenues of $100M with a market cap of $50M.
This is probably the most undervalued stock I have ever seen. Whats unbelievable is that they have another mine on the way that is expected to produce copper, zinc, silver and gold.
The biggest negative is a $17M loan that has a 14% interest rate. That amounts to about $2.4M in interest per year. The good news is that they have a current cash flow of more than $3M per month and they should be able to pay this loan off in a year.
They should earn about .80 pretax over the next year.
don't know when I've been this excited about a stock. For more
information EMail me at firstname.lastname@example.org or check the FMA stockhouse message board. JMHO This stock is easy to buy in the U.S. using the symbol FSTMF
[Editor's Note: The stock has popped quite a bit lately and I'm looking for an entry point. I recommend you do your own due diligence (there is one issue worth considering which I won't mention here) and make your own decision. It has definite possibilities.]