Mega Uranium Ltd (MGA)

[TPG593]

Based on Mega Uranium's Q3/2012 figures, the company had $165.9 M in assets and $1.9M in liabilities. This represents a NAV of $0.62 / share based based upon 267.1M shares.

Total Assets = $165.9 M
Liabilities: -$1.9M
NAV = $164 M = $0.62 / share

Mega Uranium recently announced that the government of Queensland had lifted the ban on Uranium mining. The market reacted with a +60% increase in the stock's price. This tremendous increase was shortlived due to some profit - taking by short term day-traders on minuscule volumes. But for those that have a little more patience, we have huge expectations for this stock once it pops back on the investment community's radar screen. With so little volume traded every day, even the slightest piece of good news causes this stock to pop. and with a NAV roughly 5 times the current market value and literally no debt, the upside potential is huge with very little risk.

We also believe that at this price, Mega Uranium is positioning itself as a prime takeover target given the number of countries it explores in.