re: Ann: Tangiers terminates farm-out agreeme...
Oversold as priced at "Failure" Multibagger in the making.
According to IC last Nov the SP would slump to 12.5p ~ 21c if no discovery were achieved yet here we are already below that...
Investor Chronicle last year Share tip summary
At 28p ~ 48c, Tangiers' shares trade for less than half RFC Ambrian's fully risked estimated value of 70p ~119c. In addition, the broker calculates that, if a farm-out is successful and drilling turns up a 400m barrel oil discovery, then Tangiers' share price could go to 540p ~ 9.20$ by the end of 2014. Conversely, if no discovery is made, the price could fall to 12.5p ~ 21c. That equates to 10-bagger potential in less than two years, with a downside of about 50 per cent. It's risky and speculative, which is what oil exploration is all about, but those odds are enticing.
Buy.
TPT Price at posting:
19.0¢ Sentiment: Buy Disclosure: Held
