Malaga Inc MLGAF

Undervalued

[velky]

First time poster here on stockhouse....

I originally came across this stock in late 2009 when it was at 10 cents.  Been waiting or 3 years for it to return there and have bought a lot in the recent months.

Very interesting to see the stock trading at such a low value right now.  The mine still has years of proven reserves with a lot of exploration potential.  The hydroelectric plant is what makes this company interestng to me as it allows them to be the lowest cost producer.  Hope to see further news on the second hydro plant soon.

Has there been some institutional selling recently?  I read that the company was close to securing debt financing for expansion of some zones.  To me this if preferable to equity financing and dilution.

At the 7 cent level traded at earlier today, that puts the entire company as being worth $12.8 millon which I just cannot see being fair value for this company.

Looking at another mining company here in a different sector, Northrn Graphite (NGC) has a market value over 3x that of Malaga, with no infrastructure, no mine, zero sales and a heap of dilution ahead.

Is tungsten just not the flavor of the month?  Prices are still faily high.  Unless massive dilution is in the works, this company looks like a steal.

[jim96]

In principle, I totally agree with your evaluation about this company. However, no everyone like doing business in a risky country such as Peru. Plus, the cost of ming tungsten is too high at the moment. We won't see share price appreciation until profitability improves. Being said that, I am still loading shares at this level and I try to average down my cost from 12 cents to 10 cents.

[BoursesInvestir]

I think there is more than that. I invest into another company in Peru and the stock is increasing since the beginning of the year. From 0.36 to a 0.95. What is hide behind Malaga right now? We need to wait Malaga to tell us. So far with what we know it seems to be a really good investment at this point.