Tiger Resources (TGS) PUBLISHED: 03 Oct 2012 14:46:00 | UPDATED: 04 Oct 2012 00:05:58PUBLISHED: 03 Oct 2012 PRINT EDITION: 04 Oct 2012
The exit of major shareholders could be a positive development for Tiger Resources as some brokers believe it will improve liquidity in the stock and attract other professional investors. The African-focused copper miner’s tightly held registry had been constraining the stock, according to Foster Stockbroking. Trafigura Beheer sold its entire 28 per cent holding in Tiger last week to institutional investors at 35¢ and Urion Mining International said yesterday it had ceased being a substantial shareholder after it sold 173.8 million shares. However, the benefits of higher liquidity may not be reflected in Tiger’s share price in the short term as investors are nervous about the outlook of smaller miners, particularly those operating in Africa. The stock looks good value on fundamentals but it is trading on a one-year forward price-earnings ratio of 6. Analysts say it will post its first annual net profit this year.
The Australian Financial Review
TGS Price at posting:
35.5¢ Sentiment: Buy Disclosure: Held
