Agoracom Blog

Continuum Resources Backed By Big Industry Names

Posted by AGORACOM at 11:46 AM on Tuesday, April 24th, 2007

One big factor all investors should look for in a new company are big names that have thrown their financial support behind it. Why? They conduct better due diligence than you or I could ever dream of.  As such, if they put their money where their mouth is, who are we to second guess them.

Today I stumbled upon an extraordinary company with some incredible names and ownership stakes backing them – Continuum Resources (CNU: TSXV) .  CNU is not an AGORACOM client but with this kind of ownership I’m going to pick up the phone.  Have a look at the following:

Sprott Asset Management holds 19.9% of Continuum’s outstanding shares, while Agnico-Eagle, the seventh largest mining company in the world, owns over 15%. JF Mackie, Joint Venture partner, Fortuna, and Pinetree Capital hold collectively 20%. Combined, these major shareholders own 60% of outstanding shares.

Hmmmm…Sprott, Agnico-Eagle, Pinetree Capital.  Who are we to argue?

A closer look at their home page provides a link to an inteview with Eric Sprott himself in which he states that Continuum is one of his top 4 picks (he was actually asked for his top 3 but provided 4, including CNU).  Unless, you have a better track record than Eric, CNU deserves a real hard look.  To this end, the front page also proves a link to a research report by Fundamental Research, rating CNU as a speculative buy with a target of $1.60.  CNU is currently trading around $.75, so it appears there is ample room to profit if you like the research and the big amigos that have put their money behind CNU.  I’ve included a chart below for your convenience.



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