Trouble in Paradise?
First, stop all this foolish chatter about stock being manipulated by some unknown “force”. Not a chance! Second, I’m very long and remain quite optimistic long-term. However, there’s no denying the fact that either some not so great things have occurred in recent times at NSU, and/or, the perception is that and has gripped the share price. In either case, it has fed on itself thanks to silence from NSU - albeit my hunch is the recent comment from the BMO Analyst had some real “Insight”.
How’s that you ask?
First, here’s what was said:
BMO Nesbitt Burns analyst Alex Terentiew says that when mulling investing in the base metals sector, investors should focus on companies displaying good growth and improving balance sheets. The Globe's David Leeder writes in the Eye On Equities column that Mr. Terentiew rates Nevsun Resources ($4.04) "market perform." He targets the shares at $4.75. Analysts on average target the shares at $5.64. Mr. Terentiew says in a note: "The company's valuation in our view already reflects the Zn price upside, and growth from Timok is still approximately four years away from being realized. In addition, Bisha's Zn circuit metallurgical issues have not yet been resolved, and the company's ultimate plan of development for both Bisha (underground scoping assessment due Q2/17) and Timok (PFS Q3/17) have yet to be finalized, creating an elevated level of uncertainty."
The insight IMHO comes from the fact that Heather Taylor, who now heads up IR for NSU in-house, was part of the BMO Research Team not too long ago Second, BMO will soon host one of the most sought after conferences to speak at, and/or attend, for institutional investors and mining companies alike, and NSU wants NSU onside. Trust me, Alex didn’t “wing it” on NSU comment.
I’ve said for months, until the Bisha production issues were publicly disclosed to be behind us, we weren’t going anywhere fast. That’s the first weight on the share price. The second IMHO, is we now have been drilling for several months, and if we hit something big or even a real whiff of it, we would have to hear about it by now – or at least see it in the share price and volume to the upside.
NSU is heavily owned institutionally and they haven’t given retail investors more than lip service for quite some time. If everything was “hunky-dory”, believe me, they would have not waited and put that news out or we would’ve seen it by a sustained higher share price
So to my friend Tony, Cash and some others, while it may not be nearly as promising as it was last fall, I’m still optimistic in the end we do okay – only it will take longer and may not be quite as lofty.