Forsys Gets Back to Basics

Analysts are getting back to basics on uranium miner Forsys Metals (FOSYF.PK) after a failed takeover bid.

Forsys dropped the curtain Wednesday on an overly-dramatic, eight-month takeover offer from African miner George Forrest International Afrique S.P.R.L.

Shares in the mining company dropped sharply on the apparent death of the $579-million all-cash bid, which valued Forsys at $7 a share. On fundamentals, the company may now be attractive. Canaccord Capital analyst Eric Zaunscherb jumped out with a report Wednesday that said the takeover had to be spiked, as “there were limits to Forsys’ patience.”

Based on the technical and financing risk that come with developing Forsys’ properties in Namibia, the Canaccord analyst put a $5.50 target price on this stock.