Fabrice Taylor full report
Looks like some of that free-trading 45 cent stock is coming out today, nothing like locking in a 5 cent profit, LOL! I was happy to buy a bit at 51 this morning. This may be a repeat but during the weekend I found that Fabrice Taylor's report dated October 28, 2012 is available here:
He lays out a case for a $3.59 share value and raises some points I wasn't aware of:
Nordex’ plant and equipment runs at about 15% capacity. The company wants to work the plant harder by expanding its markets beyond gold mining.
Nordex’ plant in Kirkland Lake is pretty much the only one in the province that can make bulk explosives for general sale. The two global explosives giants, Orica and Nobel, have bulk plants in Canada but they’re at gold mines and are exclusive to that customer.
…we think it quite likely that Nordex will be bought if it can gain share as we expect. That’s what Nobel and especially Orica do: buy rivals…
Nordex’ chairman is the former vice-president of Orica North America, it should be noted.
...we’re modeling a five-fold increase in revenues. While we’re not putting a date on it, we think it can happen in relatively short order. How? With about $10 million of capital to build out the satellite depots and equipment. We think the company can raise the money with a combination of debt (30%) and equity (70%). We assume the equity can be raised at an average price of 88 cents (namely a round of $2 million at 45 cents, another $2 million at 80 cents and a final $3 million at $1.50…
All that, coupled with last week's Wahgoshig LP and this morning's robotic arm announcement, makes it hard to see much downside from here…