Bob, I have not reviewed your estimate, but if you indeed took both time discounting and costs out, and you feel that the report on reserves has a high degree of credibility, then your valuation might be correct.
One thing I would warn you of, however, they recently received $700,000 financing, and for a company like NAMX to get such funding they must attache to it either severe conversion clauses or oodles of warrants. If the stock were to drop to a penny, these $700,000 could easily mean another 70 to 100 additional shares. I do not know that this is what is going to happen, but in many companies in similar financial straights, this is the kind of things that does happen.
Last, we still have no idea what is the deal with the "Swiss owners" of the EM technology. The company has never told us how they get compensated.
Another word of caution, if you plan to add to your position, it is clear that a reverse split will be necessary and stock usually fall quite sharply after such reverse. So, if you still feel this company has value far exceeding what the market tells us the value is, you may want to time "Averaging down: after such a reverse.
Zeev |
