Image Resources (IMA) is the buy of the week in The Speculator...

Image Resources (IMA) is the buy of the week in The Speculator column in today's Bulletin magazine.

The buy was actually a top-up: The Spec already had some IMA in his portfolio.

The reasons for the unusual second buy-in are:

1. The low prices IMA is at of late due to tax loss selling. (It's way down off its recent $2.40 high.)

2. The Speculator's view that the company is now a potential takeover target.

He also thinks it possible that there may be a further Magnetic-like spin-off that could benefit holders:

"It was made clear with the spin-off of the second Magnetic earlier this year that Image wanted to concentrate on HMS [heavy mineral sands] on the northern Perth basin. Note that Image still has about six farmed out nickel and base metal projects in WA, some advanced. I shouldn't be surprised if some were spun off in this robust market, with rewarding results for Image shareholders."

More fundamentally:

"Image's shallow depth, high-grade heavy mineral sands (HMS) are without a doubt worth far more than the company's substantially undervalued market capitalisation of $154 million."