Long
Oversold bounce
I’m not great a valuing miners, so some feedback would be greatly appreciated This silver/gold miner looks very interesting based on order of transactions that has recently occurred. On Dec 3rd “the Underwriters have agreed to purchase for resale, on a "bought deal" basis, 22,750,000 common shares of the Company (the "Common Shares") currently held by the Selling Shareholder at a price of $1.10 per Common Share (the "Offering Price") for gross proceeds to the Selling Shareholder of approximately $25.0 million“
August 24 they announced the acquisition of coral gold
"
Pursuant to the Transaction, Coral shareholders will be entitled to receive, for each Coral share held, consideration consisting of C$0.05 in cash and 0.80 of a unit (a "Unit") of Nomad, as described below. The consideration payable to Coral shareholders by Nomad represents total value of approximately C$1.21 per Coral share (the "Aggregate Consideration per Coral Share"), based on the closing price of C$1.37 of Nomad common shares on the TSX on August 21, 2020 and including the C$0.06 estimated value per Coral share of the one-half common share purchase warrant included in each Unit. Based on Nomad's and Coral's August 21, 2020 closing prices on the TSX and TSX Venture Exchange respectively, the Transaction represents a premium of approximately 45% to Coral shareholders.
Each Unit will consist of one Nomad common share and one-half of a common share purchase warrant (a "Warrant"). Each full Warrant will entitle the holder thereof to purchase one additional Nomad common share at a price of C$1.71 for a period of two years following the effective date of the Transaction. If the daily volume-weighted average trading price of Nomad's shares on the TSX exceeds the Warrant exercise price by at least 25% for any period of 20 consecutive trading days after one year from the effective date of the Transaction, Nomad will have the right to give notice in writing to the holders of the Warrants that the Warrants will expire 30 days following such notice, unless exercised prior thereto."
- Throughout October to November we can see continuous insider buying from 1.39 – 1.10.
- Analyst price target is from 1.56 - 1.68.
According to yahoo finance for insider holdings:
85.92%% of Shares Held by All Insider0.53%% of Shares Held by Institutions3.77%% of Float Held by Institutions
Technicals seems to suggest a daily oversold bounce ( not closed yet )
Conclusion:
It is currently trading at 1.04 below the prices of insider purchases, acquisition prices and the recent bought deal .In addition, the insider shareholder % is extremely high, so it seems undervalued and downside seems limited. Perhaps after tax loss selling harvesting is over this will begin to move up, but I believe this is a great time to accumulate as selling pressure from retail traders should be fair limited at this point.
August 24 they announced the acquisition of coral gold
"
Pursuant to the Transaction, Coral shareholders will be entitled to receive, for each Coral share held, consideration consisting of C$0.05 in cash and 0.80 of a unit (a "Unit") of Nomad, as described below. The consideration payable to Coral shareholders by Nomad represents total value of approximately C$1.21 per Coral share (the "Aggregate Consideration per Coral Share"), based on the closing price of C$1.37 of Nomad common shares on the TSX on August 21, 2020 and including the C$0.06 estimated value per Coral share of the one-half common share purchase warrant included in each Unit. Based on Nomad's and Coral's August 21, 2020 closing prices on the TSX and TSX Venture Exchange respectively, the Transaction represents a premium of approximately 45% to Coral shareholders.
Each Unit will consist of one Nomad common share and one-half of a common share purchase warrant (a "Warrant"). Each full Warrant will entitle the holder thereof to purchase one additional Nomad common share at a price of C$1.71 for a period of two years following the effective date of the Transaction. If the daily volume-weighted average trading price of Nomad's shares on the TSX exceeds the Warrant exercise price by at least 25% for any period of 20 consecutive trading days after one year from the effective date of the Transaction, Nomad will have the right to give notice in writing to the holders of the Warrants that the Warrants will expire 30 days following such notice, unless exercised prior thereto."
- Throughout October to November we can see continuous insider buying from 1.39 – 1.10.
- Analyst price target is from 1.56 - 1.68.
According to yahoo finance for insider holdings:
85.92%% of Shares Held by All Insider0.53%% of Shares Held by Institutions3.77%% of Float Held by Institutions
Technicals seems to suggest a daily oversold bounce ( not closed yet )
Conclusion:
It is currently trading at 1.04 below the prices of insider purchases, acquisition prices and the recent bought deal .In addition, the insider shareholder % is extremely high, so it seems undervalued and downside seems limited. Perhaps after tax loss selling harvesting is over this will begin to move up, but I believe this is a great time to accumulate as selling pressure from retail traders should be fair limited at this point.
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