Tuesday Recap
Firstlet me say everyone needs to do their own due diligence. I'm not here pumping. Rather, I decided to exit the basket approach I had through brownstone and buy companies that were affiliated insomeway. My picks were PDP,MOO and this diamond in the rough. I have a good understanding of PDP and MOO and am now lifting the stones and learning about XT. PDP up nicely BTW.
XT is IMO a great play. Some obviously view this as a sleeper which I believe is the opprtune time to take aposition. Researching stock is my passion and hobby andI intend to share with the board my findings (better than sitting in the bar...i guess). I am not immune to errors or ommissions but will apply integrity with a little slight bias because I like the story and obviously am now invested andplan to invest more as the story unfolds.
Here's where I'm at so far.
1. XT has a great capital structure with only 11.7 million shares out. Eventually the stock needs to become more liquid. IMO liquidity will be created through subsequent P.P's and potential stock split asthe price may be to high to attract junior investors. Funny how that works. Better to have 40million shares @ .50 then 10million shares @$2.00
RATING: A+
2. The company is trading near cash and marketable security value. This gives virtually no value to the land holdings and fact it is a publicy traded entity (even a clean shell with nothing has value).Downside is they will burn cash to advance exploration but I think Management will proceed with caution on the dilution side. Why? Add up the insider holdings andconsider the price recent investors ponied up to acquire a position. Given the excitement around XT holdings I believe a $ 5 million uplift in marketcap is fair. That gives me a valutaion of around $.90 a share
RATING: A+
3.Ability to raise capital - XT has a direct link to capital markets by having S.I on the BOD. Whether it is pinetree,brownstone or other. I think Sheldon has the contacts and expertise to ensure funding is not an issue. Don't forget Brownstone has a vested interest in the gas shales through BWN. Oh yeah....S.I also experienced with O&G and Uranium....nice fit!
RATING A+
4. Uranium plays - I havn't looked at theother property yet but Lindsay is so close to Lac sairs I can't help but believe there is upside without any work just based on Fieldex's recent news andstockrun up. Now let's add further upside with dissimenation of exploration andfield work done or planned by XT.
Rating: Speculative A
5. Shale Gas- It has begun with air survey. Potential for further farm ins outside BWN. Canbriam J.V with Olympia (ARC Financial is a big investor in canbriam) has completed the first well on lands contigous with XT's holdings. Fromwhat I read on another board they are going to complete 5-6 wells before disseminating results. Canbriamis a private firm so results disclosure not mandated. They will be tight lipped on results IMO don'twant to drive up land values if you wish to undertake further acquistion. Watch for any deals to be made as an indication of drill success.
Rating:Speculative A
6. Small accumulation but healthy percentage of outstanding shares. Some one is accumulating and I have a hunch that will need to be confirmed by news. If history repeats itself the news will be timed with other developments.
Rating: Intriguing
7.Warrants- Look where the stock price must go to put warrantsin the money. Alsonote the option pricing.
Rating: B
Limited following:
The herds came...then they left. This is more than a one trick pony.
Rating:A
Conclusion:
With all that is happening around XT and in XT and in consideration of the foregoing I for one do not believe for a second that a $12 to $20 million market cap is not achievable. This gives me a near term target price of $1.03 to $1.70.
GLTA. The above is my own research and opinion!