I've just returned from the World Money Show, where some 10,000+ investors gathered to learn about global investing. I had a chance to meet with many of the advisors who were featured at the show, and I have been highlighting some of their favorite investment ideas. To view all of the stocks featured in this special global report, click here.
Elsewhere in this global report, we feature the top South African stock from Adrian Day, editor of The Global Analyst. Here, he looks north of the border to a top pick among more speculative Canadian-based, global exploration play.
He explains, "Altius (TSX:ALS) has its roots as a prospect generator, focusing on mineral-rich but under-explored Newfoundland and Labrador. It has grown beyond that, but still looks at opportunities to grow, using other people's money to advance projects and minimize its risk.
"And it still generates properties; recently it staked three new uranium properties in central Newfoundland and a nickel property in the east with a plan to advance to a joint venture or strategic equity stake.
Altius has seven main assets now, four of which are joint-ventures or minority interests developed through staking, including 10% of Aurora Energy, 30% of London-listed Rambler Metals, and a uranium property in western Newfoundland, joint-ventured with JNR Resources.
"Altius also owns a royalty on Inco's Voisey's Bay nickel project, which started operations just a year ago. This will generate about $1 million a quarter to Altius, with no cost, at today's nickel prices. This multi-decade project has plenty of exploration upside and great leverage to nickel prices.
"It is also a partner and manager of the Newfoundland and Labrador Refining Corporation. A stroke of genius on the part of Altius, the NLRC, with investors from Ireland and the U.K., and in which Altius owns 37.5% as well as a royalty, is developing a proposal to build a new oil refinery in Placenta Bay in southeast Newfoundland.
"The proposed refinery would be strategically located close to the offshore East Canada oil fields as well as the oil-hungry Northeast United States. An economic impact study is currently underway. If approved and the project proceeds, it would be a money spinner for Altius for decades into the future.
"The company's main asset, however, without question is the president, Brian Dalton, an unassuming but incredibly bright young many who developed the company by hard work, cost control, high ethics, and intelligence. He has surrounded himself with bright people with great experience and stature.
"Even though the price of Altius' stock has more than tripled since mid-2005, the whole company is valued at just under C$300 million. If one adds up the value of just the hard assets, we get a value of C$217, without giving any value at all to the various joint-venture and exploration programs. Thus, we consider Altius undervalued.
"The stock is still a buy for value investors. The company appears to agree since it is instituted a share buyback program. In my view, Altius is an undervalued, low-risk, and high-potential company that should be bought on any weakness and held for the long term."
Steven Halpern's TheStockAdvisors.com provides a free, daily overview of the latest stock ideas from the nation's leading financial newsletters.
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