NAG now ...My personal trading philosophy is to get into stocks that are undervalued, with little room to go down, while the sector is getting hot. I must admit I do not follow this philosophy all the time and have been burnt a few times chasing stocks. Having said that, I think this is probably the best time to get into NAG. If I had not been holding NAG for so long, I would definitely be looking into buying NAG at these prices - which I have still despite my tenure with NAG. As I have posted a while back, i bought a s.hit load @ 10.5 cents and if I had more $$$ I would buy more here ...
Getting past the delays, options, PPs, issues with management - IMO NAG is actually a pretty good stock that has plans and it is executing them (although not as quickly as we'd like). Its got a mine producing (mine #2) and another mine that will be producing shortly - barring any unforeseen circumstances (mine #3). It has pending permit applications for other mines which should come to fruition this year, including mine #4 which is blue gem coal.
If mine #2 produces 10K tons a month, mine #3 produces #30K tons a month - alone that's 40K tons a month. If profits are $20 per ton -- you do the math: 20 X 40,000 = $800,000 per month profits ...
Put in mine #4 even producing 20K tons a month of blue gem coal with let's say $40 a ton of profits that's an additional $800,000 a month in profits.
So, with my numbers on mine #2, 3, and 4 we're looking at a profit of $1.6 million a month or $19.2 million dollars a year. IMO the numbers should put a value of at least $2 a share!! As far as my understanding, there are other permits in the process too ... This year could be NAG's year!!!
Remember, coal is hot and getting hotter. The above numbers could be very very conservative. If the coal fever hits like it did in 2008 - which is a possibility, NAG can sky rocket up and fast!
Do your own DD. Don't take my word for it -- the above is just my opinion and most of it is speculation!!
There are risks with NAG, obviously. It can amount to nothing or amount to something very significant. At these levels, I'm willing to take the chance. Some of the concerns I have with NAG is 1) they don't make the production numbers 2) they don't make the profits per ton if production costs too high 3) the economy takes a dive 4) they don't get the permits for #4 and other mines as anticipated ...plus others that I have not listed including unforeseen circumstances .... An NR on #2 telling us how much they are producing and whether they are making money would be nice ... that should allow investors to make a better projection on mine #3 and other mines that may be on line in the future.
Well, these penny stocks are just that ... high risk, high reward ... you can either make it big or bust! I'm betting on NAG to make it big ... I've been holding NAG for so long, I can wait a few more months even to the end of the year!!