This stock is insanely undervalued and primed for multibagging. It is currently trading at 2.5 cents with a market cap of 8.7m. it has been consistently trading at a multiple of under 1x despite it being in a relatively unique position: Its a junior miner thats not only producing, but has been profitable almost every quarter for years during a gold bull market. Given the way profits scale for gold miners, and the predicted gold supercycle, geopolitical considerations, weakening USD, BRICS, and many other pro-gold factors, its extremely likely that this profit margin increases even more over the coming years. To put it into perpective, with NO other changes, just being valued fairly based on CURRENT profits and trading at multiples similar to its peers, the stock could see a rerate of at least 8-15x. Thats without anything else discussed below. What happens if gold hits $7 or 8k?
As it stands, the stock suffers extreme FUD, mostly against the CEO and his previous dishonesty. The fact of the matter though is this: Management has show recently that the company is serious about shareholder value. Eliminating convertable debt, putting dilution protection provisions on any newly issued shares (mentioned in recent press releases relating to NAG), providing shares of the spinoff NAG via special dividend, taking reporting steps to become fully SEC compliant, and talks of uplisting. This kind of action is not indicative of a dishonest company, and they have been doing what they promise, not just talking. They have even started the process of buying back shares. A scam OTC stock doesn’t do that.
From a techical standpoint, the stock is finishing up a multi year wyckoff base, complete with a spring that plunged deep into the “under a penny” range, which has been followed by a HUGE uptick in daily volume and repeated reaccumulations, liquidity sweeps, and an OBV thats showing people are generally holding. The stock is currently in a VERY early markup phase, the real moves havent happened yet. A wyckoff accumulation base spanning multiple years has similarly large markups. We havent seen anything yet.
The NAG spinoff now owns assets worth almost $200m (200 for easy math, the exact number is “over $190m”), and that estimate is completely compliant, not just trust me bro. That alone should be increasing BMXIs valuation, but it hasnt. Why?
The special dividend will be issuing NAG shares to BMXI shareholders at a rate of 50 BMXI to 1 NAG, with total shares equaling 20m. BMXI will retain 12m and distribute 7m via dividend. If we value NAG at 50% of its implied gold value, say $100m, that puts each NAG share at $5. At the rate of 50:1, and at the current BMXI price of $0.025, youre looking at a dividend thats giving you $5 for every $1.25 invested. But nobody is talking about it? NAG could IPO at $1 and this would STILL be an insane dividend. But the market doesnt care?
Management has already staged NAGs assets with machines and are close to ready to begin operation. Neither of the companies are in the exploration stages, so why are they being valued like they are?
All of this has led me to the conclusion that this stock is undervalue simply because nobody is looking at it. It has a couple of big players accumulating, but since its OTC, it has: No institutional investment, tiny retail investment, no ETF investment. Its basically a ghost and when the market realizes whats going on, this stock is going to blow the top off and may even end up overshooting.
At pennies a share, a clear bottom being in, and the insane upside potential, the risk:reward profile on this trade is crazy good.
Conservative target: $0.20
Realistic target: $0.30-$0.45
If the stars align: $1 or more.
They want an uplist, meaning, depending on the exchange, a minimum stock price. At the low end, this requires $1. Could they reverse split it all? Sure, but buybacks, special dividends, and low multiples relative to peers indicates that its POSSIBLE this could rerate to meet a $1 share price. Whats more likely in my opinion, is a rerate to mid double digits (0.15 to 0.35), followed by a much smaller reverse split to meet exchange requirements.
Once listed, we could see more movement as the stock gains exposure to retail, institutions, and ETFs. Volume spikes from that initial influx of buying would almost certainly attract day traders, speculation traders, and retail fomo, then the overvalation phase begins. Several dollars at that point isnt out of the question.
Quick napkin math: curent price of 2.5cents, lets say a very conservative rerate to 25cents, thats 10x. They do a 4:1 reverse split to hit a $1 listing requirement, the above plays out, and it hits $3/share. Thats a 30x increase, and totally ignoring the NAG IPO.
Overall, buying now before the special dividend seems like a smart move, the upside and fomo potential is massive, the market is severely undervaluing it currently, deep pockets have accumulated and are actively defending the 2-3 cent range. In my 5 years of being a basement trader, this is by far the most promising setup I have seen.
My plan: Continue to DCA at any price below about 3.5 cents. Hold until uplist and it gets an options chain and sell covered calls to exit when its overvalued and fomo kicks in. Current position: ~70,000
Uncertain about NAG, I may sell early and wait for the market to find a bottom before rebuying, or I may just hold it.
This post is is mainly so I can brag in 10 years and have proof that I took this crazy trade.
submitted by /u/Tripartist1 to u/Tripartist1
[link] [comments]