Next boom Mining/Resource Penny Stocks

Originally posted by 211461 ↑

Anyone care to make a prediction on the next ASX Penny stock to hit it big (re the next PLS). PLS went from a low of 0.008 to a high of 0.87. I'm sure a few people on here got in on it and made a packet of money.

Most of us have been following the CAD/BAR/NZU hysteria buying that has been going on of late since the PPP recommendation. For me CAD looks the goods and the one that I've bought into the most.

What else are people following?

MRG - MRQ metals - due some drilling results soon. Not sure if the weather is playing a factor at the moment though. Recently got slammed after some underwhelming drilling results.

Blina Minerals - BDI - chronic underperformer, but have noticed of late that the 0.001s are getting snaffled up as soon as they come available. Now theres some gathering at 0.001. Increased volumes throughout February. Have emailed the company but haven't heard anything yet. The only projects on their website are the Diakouli project in Burkina Faso - (Blina is currently undertaking an extensive and ambitious programme to fully explore the geological, geochemical and geophysical data on the license. Several targets of potential soil anomalies have been identified and are being explored thoroughly). Not sure if the activity with BDI recently is just market fluff or a harbinger of something bigger brewing?

WKT - Walkabout Resources - sold out of this for a loss after the consolidation, then the next week it jumped on the Lindi Jumbo news. Burnt.

Hopefully this can generate some friendly discussion without the flagrant up/down ramping. Always nice to broaden ones view.

Might be fun to look back on this in 12 months time and see who was right.

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can I ask why you have chosen CAD over RMX in your investment decision?

personally I think RMX is the better opportunity and I will list why I have chosen it over CAD

1. shares on issue CAD 5.2 billion vs RMX 420 million
the reason this is important as when there is much less selling pressure on good news and RMX will run much harder than cad will

2. share price - two factors here, part A, when the need for a CR comes there will be far less shareholder dilution for rmx than there will be for CAD, each pip for CAD represents a 5 million dollar extra MC so at 0.006 CAD will have a 30 million market cap, compare that to RMX there SP will have to rise up to 6.8c to have around a 30 million market cap, so two pips for CAD and a bag for RMX

Part B, because CAD is trading well under 1c mark each pip represents a significant profit share holders can sell at, buy at 4 sell at 5 is around a 20% profit, must traders will be happy to take that, what this means its very hard for the SP to go anywhere and might need significant good news to move up.

3. MC for RMX is currently 14 million after new shares to be issued with 3.1 million cash gives a enterprise value of around 11 million.

CAD at 4 is 20 million MC and at 5 is 25 million MC with 1.4 million cash gives a enterprise value of 18.6/23.6. both have simular prospects with CAD maybe slightly more progressed at this stage both having expanded there land holdings and CAD a little closer to both clayton valley and the gigafactory, still I think RMX is better value on paper.

4. Management, CAD just have there directors on board to manage the drilling on there brine project. RMX have two lithium experts engaged with BORG and Bill Feyerabend (B.Sc Geology) Arizona-based certified professional geologist for over 40 years as well as its directors.

so in my honest opinion I think RMX gets the nod but I'm certainly open to a constructive discussion on the matter.