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Message: KMK article

KMK article

posted on Jan 16, 2010 03:45PM

I found the article on KMK below....don't know who knowledgable the author is. What I had not heard before is the info about the CEO so don't know if that's true or not. susan

This post is part of a special report, Top Picks for 2010, the 27th annual survey in which TheStockAdvisors.com asks the nation's leading advisors for their single favorite stock for the new year. See all 80 stocks listed here.

"Continental Minerals (KMKCF), my top pick for 2010, holds high-grade copper and gold deposits that are located in Tibet/China," notes Tom Bishop.

In his BI Research,an advisory focused on small-cap, high-growth stocks that has been published for over 30 years, he adds, "I also believe the company is ajuicy takeover target."

The advisor continues, "The company has proven up 220 million tons of measured and indicated reserves in its high grade-porphyry copper-gold Xietongmen deposit grading 0.43% copper and 3.9 grams of gold per ton. This translates into 2 billion pounds of copper and 4.3 million ounces of gold.

"A feasibility study has been completed and the project has received all 16 sub-approvals and is now in for final approval.

"In addition the company's Newtongmen deposit, a couple thousand feet away and drilled off more recently, sports another 2.8 billion tons of copper and 2.3 million ounces of gold and 11 million ounces of silver.

"I think signs are abundant that Continental is a takeover target, hopefully in the $3 range.

"For one, the Hunter Dickinson Group, under whose wing the company was formed and nurtured has a long history of buying up unseasoned prospects, financing them, proving them up and then selling them to amajor mining company.

"Second, no project makes more sense to go this route given it's far away in China than this project.

"Asan example, we note that a few months ago, the same day Pepsi Bottling company rejected PepsiCo's takeover offer and concurrently announced ashareholder rights plan to protect itself in the event of a takeover.

"That takeover has since happened at a better price. Continental coincidentally announced a similar plan. That's what first made the light bulb come on here.

"Then a new party suddenly entered thepicture when a Chinese mining company, Zinjin, suddenly purchased 21million shares and was given a seat on the board. Then I even read thatthis company had stated that it intended to acquire Continental.

"Also China's shopping trip for resources all around the globe is well documented and none makes more sense than one owned by a Canadian company right within China's borders.

"Finally the CEO of Continental was redeployed to be the CEO of the latest company birthedby the Hunter Dickinson Group (Heatherdale Resources, also worth alook) ... hmmm, odd timing. They say they don't ring a bell, but I surehear something."

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