Allana Potash’s 2 billion tonne resource update + highly discounted stock promises substantial upside potential says Ubika Research in a update report
TORONTO, ONTARIO–(Marketwire – July 17, 2012) – Allana Potash’s (TSX:AAA) (OTCQX:ALLRF) recent resource update, placing it closer to 2 billion tonnes, coupled with a proximity to key demand markets and a fast growing transportation infrastructure in Ethiopia has set up its highly undervalued stock for a large upside, says an update report on the company by Ubika Research.
“Add to this the company’s intention to buy back its shares through a Normal Course Issuer Bid and a very healthy financial position and you’re looking at a very promising forecast from every angle,” says Vikas Ranjan, Managing Director at Ubika.
Using a discounted cash flow (DCF) valuation, Ubika researchers have set the Ubika Model Price (UMP) at $2.65 vs. the July 16, 2012, market close at $0.57, a 365% increase. Ubika’s stock rating for AAA is “Undervalued.”
In its report, Ubika expects Allana to continue with its feasibility and other technical studies and establish new resource over the next 12 months. “The repurchase of company’s own shares is an indication that the management finds its shares undervalued and thus a good investment,” says the report. “Besides, the company’s world-class Ethiopian potash resources are located close to key Asian Markets such as India – the second-largest importer of potash… There are only 12 players in global potash industry so the supply is limited.”
Ubika’s report is available at http://www.smallcappower.com/companies/allana-potash-corp/research-reports.html . Ubika is an investment research and capital market services firm based in Toronto and Vancouver with a proven track record of identifying and launching coverage of high potential small cap stocks (<$1 billion) at an early stage.
DISCLAIMER: Ubika Research has received compensation from Allana for providing analyst research coverage. Except for the historical information presented in its reports, matters discussed in these documents contain forward-looking statements that are subject to certain risks and uncertainties. Hence, actual results could differ materially from any future results, performance or achievements expressed or implied in the reports.
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