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About: Caesars Report helps retail and institutional investors profit in the equity markets. We cover many companies in our Research Reports, Trading Alerts and Stock Portfolio. We have advice for every investor no matter how big or small their portfolio may be. We prefer smallcap stocks above... More
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  • Mining Top 25 for 2010 - 19 - Universal Resources Limited 2 comments
    Apr 27, 2010 2:52 PM


    Released during January 2010, meaning that much has changed since then. Track our “Mining Top 25 portfolio” at caesarsreport.com/portfolio Sign up at caesarsreport.com to receive all reports and alerts live, free of charge.

    Price A$ 0.019

    Ticker URL
    O/S 892,340,000
    Avg. Volume 892,240
    Market Cap A$ 16.95
    Sector Mining (Copper)
    Countries Active Australia
    Cash A$ 3.6M (Vulcan holds 28M in cash)

    52 Week Low: A$ 0.01 (10/21/2009)
    52 Week High: A$ 0.04 (1/2/2009)


    Company Statement

    Universal Resources Limited is an Australia-based mining and exploration company with a focus on base and precious metals within Australia. The Company’s major asset is the Roseby Copper project in the Cloncurry area of northwest Queensland.

    The Company has
    mineral rights to approximately 2,150 square kilometers of prime exploration ground in the Mt Isa Inlier of North West Queensland and in the Lachlan Fold Belt in New South Wales. On September 14, 2009, the Company announced the commencement of drilling at the Bedford North and Lady Clayre prospects within the Roseby Copper Project and Ivy Ann within the Cameron River Project. On September 28, 2009, the company announced a merger with Vulcan Resources creating a significant copper-focused global developement.



    Positive / Negative

    Positive:
    Merger with Vulcan provides a cash-injection of A$ 28M, Xstrata is shareholder of the company (4.5%), after the merger there are two projects with Feasibility Study.
    Negative: Reverse split coming up in January, Capital Expenditure (capex) of 170M AUD > Further dilution probable.


    Main catalysts for 2010

    - Merger with Vulcan Minerals
    - Construction decision on one of the two copper projects in Finland or Australia
    - Xstrata holds a right to buy 51% of the Australian Project until June 2012

    Disclaimer

    For the full disclaimer, visit http://www.caesarsreport.com/discl

    The CaesarsReport.com employees, Caesars Report ("We" “They” “Caesars Report”) are not Registered as an Investment Advisor in any jurisdiction whatsoever. CaesarsReport.com employees are not analysts and in no way making any projections or target prices. Neither the information presented nor any statement or expression of opinion, or any other matter herein, directly or indirectly constitutes a representation by the publisher nor a solicitation of the purchase or sale of any securities. The information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of the available data. The owner, publisher, editor and their associates are not responsible for errors and omissions. They may from time to time have a position in the securities mentioned herein and may increase or decrease. Please always do your own research. All information was provided by the company, their presentations and website. We are not responsible for errors made herein. Please consult a broker before purchasing or selling any securities mentioned herein.



    Disclosure: We hold a Long position in Universal Resources Limited, this means we are biased, so please do your own research. Educational use only, not intended as advice.
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Comments (2)
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  • ejacharles
    , contributor
    Comment (1) | Send Message
     
    Why do they split the stock twice?
    For the merger with Vulcan, right?
    Could you pls explain in more detail to me about their adoption of these two stock splits just before the merger? Thank you!
    You can reply to my email: helen.hexy@gmail.com
    Wish to hear from you soon.
    Best!
    29 Apr 2010, 09:42 PM Reply Like
  • Caesars Report
    , contributor
    Comments (3) | Send Message
     
    Author’s reply » Hi,

     

    The stock was not split twice. You are probably referring to the Google Finance chart showing 2 splits, but this is an error.

     

    As to your question why the stock was split, this is purely psychological. Shareholders prefer a $0.20 stock instead of a $2 stock. A $0.20 stock seems to be able to grow more.

     

    Do not hesitate to ask questions if you have any.

     

    Regards,
    The Caesars Report Team
    4 May 2010, 07:41 PM Reply Like
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