Natural resource investment and development company, Obtala (OBT) has updated investors that work on its forestry business “continues to progress well” as further orders continue to be agreed. that is good news for our readers who bought on this share tip.
Direct from the Queen Elizabeth Conference Centre a video featuring a UK Investor Show 2014 presentation by Simon Rollason of Obtala Resources (OBT)
Obtala Resources (OBT) shares have perked up a bit on two pieces of news to trade at 7-7.5p. That is down on our tip at an 8.25p offer but this is one to average down on. The market cap today is £19 million.
The Opportunity: This Company is a mini conglomerate operating in Africa with exposure to diamonds, agriculture and forestry. It has net cash and is cash generative. The valuation at an 8.5p offer is £21.5 million which fails to discount the cash that this company will be generating. There are a number of news triggers due over the next few months that will drive a material re-rating.
Obtala Resources (OBT) has today announced a deal where it will manage and operate a fruit and vegetable cannery in Lesotho and will get a 70% equity interest in the operation apparently gratis. There are no numbers with the RNS but we have some informed guidance and that suggests the shares are worth a punt.
It seems that the market mood is changing and the next beneficiary could be AIM listed Obtala Resources (OBT) – the hot money is buying and reckons that the shares will rocket from 6.625p in the middle today.
