young traders next pick

Guys,

Came across this early this morning from the ASF share site.

Young Trader has a huge following on ASF and has picked plenty of multi-baggers [TZN @ 66cents; MTN under 60cents; FWL @ 26cents; CUL @ 5cents; RMI @ 5cents; MGO @ 20cents]

I dont think anyone has picked as many winners as he so im sure there is something in this.


Looks interesting. Another iron ore play. By my brief analysis, i'm sure there a monty to exercise the option and acquire the project in South Africa.

They say in a recent announcement that they expect annual revenues in excess of $200mn minimum!!!

That leads me think that the resource is in the hundreds of millions of tonnes of magnetite FE.

It looks like they also have existing infrastructure on site - a processing plant recently acquired from Mittal Steel!!! That should saw a couple dozen million [if not more]!!

Excellent Mng;

Seems almost like a private company set up by mng for mng buddies if you ask me - wouldn't surprise me if recent placement was to mng insiders and loyal institutional backers

Either way, lots of potential for a multi-bagger by end of this year imo


Here's YT research [hope he doesn't mind me bringing it over to the HC loyals; lol...]


Mkt Cap only $16mn!!


http://www.aussiestockforums.com/forums/showthread.php?t=8177



Today, 01:45 AM

YOUNG_TRADER Join Date: Feb 2006
Posts: 2,792

CNF - Continental Goldfields

--------------------------------------------------------------------------------

Hi guys,

I've found a real speccy shell that looks to be getting ready to join the Iron Ore boom, see below




CNF


Mkt Structure

Shares
135m
+ 25m 20c Opies 30/9/07 Listed Opies
+ 50m 20c 30/6/10 Unlisted Opies



Mkt Cap @ 12c = $16m Current



Cash
$7m + $2m in a listed investment which they are looking to capitalise on = $9m


Placement
It should be noted that 45m shares were placed at 12c recently, these shares from what I understand it were placed to Sophisticated Investors who are very unlikely to stag a profit, but may do so nevertheless,

Thus as with ACS caution is advised when buying, however buying at or close to 12c seems safe both from a chart/technical perspective and in terms of the placement



Projects


Vandiferrous/Carbon Steel Project Carbon Steel/Pig Iron/Vanadium, 25%, South Africa

From the looks of things, this seems to be an old operation that went to the wall due to poor Pig Iron prices, "Pig Iron prices 25% of what they are now"

So I'm expecting that there is a historic resource which would have to be several hundred million tonnes of magnetite/vanadium type ore given that a whole operatioin was up and running, However this is just a guess. The company has not released any historical figures or grades, it simply describes the deposit as being "a significant vandiferrous magnetite deposit"

The good news is that the project comes ready with most infrastructure, including an ex-Iscor/Mittel Steel Plant.

The project will use 1M t's p.a. of Magnetite Ore to feed the 350k t p.a. Steel Plant and "should generate revenues in excess of $200m p.a. with vonsiderable multipliers in secondary Industrial activities"

The company describes this project as a turn key project, ie given its a historical project it won't take much to get it going.

However it is still very early days to make a call on the value of this project


Bow River Diamonds, 20%, W.A.

This project surrounds RIO Tinto's Argyle Diamond mine operation which is Australias and one of the worlds largest diamond mines.

Again it is still very early days to make a call on the value of this project

Grab samples have yielded some significant results so far though


Summary

- A large placement done recently at 12c
- Chart wise 12c seems to be long term support
- A very interesting looking vandiferrous/carbon steel operation
- Still speculative though
__________________
Note: I am not a Financial Adviser, nor are any of my posts intended to be financial advice, they merely express my own opinions



Cheers!