I still have no hesitation to have a high green alert on mbg. This has been further supported by an aricle in The Age today- Malaysian buying into mbg. A large Malaysia tin smelting company has obviously done the research and bought in to the extent of 30%.
Tin price has improved by some 26% to US$4700 and this looks like a classic case of us to realising the value of the company and foreigners are buying up the stocks and potentially could take over at low cost- yet another give away if that happens. These Malaysians are not stupid, at the time when tin price is improving and expected to get to US$5000 in the near future the leverage on mbg must be significant with little downside.
There is no other tin company in Aust, apart from Murchison which no one should touch with a barge pole because of its bad financial situation, therefore leaving mbg the only tin play in Aust. The Mlaysians realised there and they jnow that it is worth twice its current amount and it is only the market that hasnt noticed.
The cash injection will definitely strengthened the balance sheet significantly. Mbg gold properties have not been built into the price. When the market come to realises the potential, and it may be through a sudden move up in tin price to over US$5000 or yet another excellent quarter, mbg will move up in share price in s ignificant fashion to catch up with fundamentals. Of course at the moment no one wants to know.
Green alert for sure on mbg, a company now wit very limited downside but with most significant upside to double current level. I know it has taken some time but as we all know the market is having a bad time and all fundamentals are disregarded but again this is the best time to be a contrarian and look at fundamentals to be ready for the better times.
