Firecracker Top Pick: First Metals (FMA.TO)

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.

I don't know when I've been this excited about a stock. For more information EMail me at firecracker7445@aol.com or check the FMA stockhouse message board. JMHO This stock is easy to buy in the U.S. using the symbol FSTMF

Firecracker

[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.]

Comments

[DaveinHackensack]

Why won't you mention the issue you see with this stock here?

[Chuck]

Great company,...I was at the Mill and in the Mine on April 25, & 26 2008, got to see everything....This is my largest holding and we should see some very positive cash flow in the coming mouths.