Seeking Alpha

Nevsun Resources (NSU +2.4%) reports new increased base metals reserves estimates at its...

Nevsun Resources (NSU +2.4%) reports new increased base metals reserves estimates at its 60%-owned Bisha Mine in Eritrea. Expressed as contained metal, the copper reserves estimate is 6% higher and the zinc reserves estimate is 38% higher as of May 31 vs. the previous estimate.
Comments (2)
  • DeepValueLover
    , contributor
    Comments (8163) | Send Message
     
    This stock is SEVERELY undervalued:

     

    179% revenue growth.

     

    85% gross profit margin.

     

    0.0013 Price to Earnings Growth ratio.

     

    What exactly is there not to like?
    24 Jul 2012, 11:36 AM Reply Like
  • demiurge
    , contributor
    Comments (7) | Send Message
     
    It's unfortunate their copper production is coming online next year. The management team clearly have a good eye for prospective sites, but it will probably also restrain them from increasing the dividend despite abundant cash on hand.
    If there are no geopolitical hiccups between Eritirea and Ethiopia, if their next project is as productive as their current locations, and if an investor has the patience to hang on to them for a while, it looks like a very attractively priced stock. That said, the last factor might constrain against much short term appreciation in stock price. The company's built for institutional investors, and without much retail or hedge fund attention I don't anticipate it getting past $5 this year.
    (Disclosure: I am long NSU.)
    24 Jul 2012, 11:46 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector

Next headline on your portfolio:

|