Orbite Aluminae (ORT.TO / EORBF) – A favourite of mineI have followed the trials and tribulations of this company for a while and thought now would be a good time to mention it here. I say “now” because a lot of the uncertainty has been removed, major milestones are about to be achieved and yet, the valuation is in my humble opinion still very low. An added potential benefit is a rather large short position.
ORT is being covered by three well respected newsletter writers that I know of, John Kaiser (Kaiser Bottom Fish), James West (Midas Letter) and Claude Cormier (Ormetal Report).
Instead of taking up a lot of “cyber space”, I would encourage anyone interested to read the most recent (public) James West summary. It’s a great starting point for anyone planning to do additional DD.
Orbite Aluminae is Transforming Aluminum and Rare Earth Industries
http://finance.yahoo.com/news/orbite-aluminae-transforming-aluminum-rare-172602629.html
The Orbite website http://www.orbitealuminae.com/en/ is chock full of detailed information.
Anyone interested in digging deeper should read the recently published White Papers by the Canadian Consulting Group, SECOR http://www.orbitealuminae.com/en/technology/white-paper/
Here is what Mackie Research https://secure.mackieresearch.com/index.php had to say about ORT a couple of days ago:
Russia Data Points Re-ignite ORT Interest
EVENT – Reviewing Comments From RUSAL Yields Insights
Several recent aluminum industry data points serve as a reminder of Orbite’s (ORT)
strategic value to the sector.
IMPACT – Comments From RUSAL Promising For ORT Investors
There has been a pick-up recently in comments made by influential leaders within
the Russian corporate and political sphere. The comments indicate a possible pickup
in infrastructure spending in Russia, and the broader Asia/Pacific area. If this
occurs, a recovery in aluminum demand may also transpire. We view these data
points as positive for Orbite as they may be a pre-cursor to an upgrade of the
RUSAL/Orbite MOU to a definitive agreement in the near-term, and/or reignite
takeout speculation of the Company, and/or earlier than anticipated commencement
of licensing revenues. The following are supportive points to this line of thinking.
1) Yesterday, on September 10th, the CEO of UC RUSAL (0486-HK) made
comments at a Russian aluminum conference that indicated RUSAL plans on
aggressively participating in the recent US$158 billion infrastructure spending
program that China announced recently. Given that RUSAL’s core business is
aluminum, participation in this infrastructure program likely entails a step-up in
aluminum production, and a requirement of additional alumina resource
development.
2) A more direct link between Orbite and RUSAL pertains to other comments
made by RUSAL where the aluminum giant specifically makes reference to Orbite,
and how Orbite’s technology may play a vital role in driving RUSAL’s expansion
plans within the sector. On September 4th, RUSAL issued a press release ahead of
the IV International Non-Ferrous Metals Congress that was held in Krasnoyarsk,
Russia on September 5-7. Of particular interest from the press release were RUSAL’s
comments that: “Another research area to be demonstrated at the congress is
alumina production technology using acid instead of caustic soda developed by
RUSAL together with Orbite Aluminae. The implementation of this technology will
enable kaolin clays of Siberian deposits to be used for alumina production and to
lower RUSAL’s Siberian smelters production costs.”
ACTION – BUY; Orbite is a Crown Jewel to Several Industries
We re-iterate our $9.00 target price on Orbite. This note highlights ORT’s value to
the metallurgical alumina industry, but its value extends into other industries such
as high purity alumina, rare earth processing, and red mud remediation.
Cheers and happy hunting,
Michael
Personal disclosure: I am in no way connected to ORT but hold a (for little me) substantial position in the stock.
PS: No, it’s not too late to look at ORT but I wouldn’t wait too much longer.
This is a discussion topic or guest posting submitted by a Stock Gumshoe reader. The content has not been edited or reviewed by Stock Gumshoe, and any opinions expressed are those of the author alone.
Hi there,
i know this is not related to this particular company but I’m not sure how to make a general enquiry.
I have tried to look up Sandstorm Gold but no one seems to know them. What
I get is a Sandstorm recourses or some other variation of Sandstorm. Can you explain what’s happening here?
If you’re in the US, Sandstorm Gold is ticker SAND. In Canada it’s SSL. There are also two warrants available that are publicly traded.
Sandstorm Resources was the original name of the company — it split into Sandstorm Gold and Sandstorm Metals and Energy. Sandstorm Metals and Energy is at SND in Canada, STTYF on the US pink sheets.
Just a minor correction … There are now three warrants:
http://www.sandstormgold.com/investors/warrant_info/
ORT … One “small” but potentially significant item I should have included in my original post:
Snip …
Putin to hold 15 bilateral meetings within APEC summitVLADIVOSTOK, September 7 (Itar-Tass) — Russian President Vladimir Putin intends to hold 15 bilateral meetings with his counterparts from other countries during the Asia-Pacific Economic Cooperation (APEC) forum’s summit on September 7-9. Presidential aide Yuri Ushakov said that these are coordinated and planned talks, but in the course of the work at the forum Putin may have also other contacts with the heads of foreign delegations.
One of them is the Canadian Prime Minister Stephen Harper, who will discuss with him a purchase of a 30% share in the new oil fields in Alberta Province by Russian oil companies and strategic cooperation between the corporations Rosneft and ExxonMobil, as well as a recent agreement between the Russian non-ferrous metals producer RUSAL and the Canadian company Orbit Aluminum, which plan building a joint factory to produce alumina.
http://www.itar-tass.com/en/c32/514121.html
Analyst coverage and target prices:
Mackie: $9 – actively covering the stock and have a “blue-sky” target of $46
Jacobs: $11.20 – Luisa Moreno, Jacob’s analyst covering Orbite is now working for Euro Pacific. I’m not sure if Jacobs still has active coverage.
Jennings: $11.50 – after making Orbite a top pick for 2012, Jennings has been fairly silent on Orbite, the AMF halt likely contributing to this scenario.
M|Partners: $15.00 – had active coverage, but I haven’t seen anything from them lately.
Byron Capital: $0.90 – this sell recommendation from Jon Hykawy caused quite a stir last Spring. It is based on his belief that the SGA technology is inherently risky. He currently doesn’t ascribe any value to Orbite’s HPA business, commenting that such a market doesn’t exist and will be replaced soon by other materials.
New coverage likely from U.S. firms now that Orbite received the OTC upgrade.
Nice high volume run-up in the past few days, it’ll be interesting to see the mid-September short interest numbers. The main thing that gives me pause with this stock is the Putin connection, the rest of the story certainly sounds worthy of a speculative flyer.