Banro Corporation (BAA) declared that it intends to raise US$40 million through the issue of convertible preferred shares by way of a non-brokered private placement (the “Private Placement”). The Company has received a non-binding commitment from Gramercy Funds Management LLC (“Gramercy”) to subscribe for the full amount of the Private Placement, although certain other investors may participate for up to US$15 million of the Private Placement.
Banro Corporation (USA)(NYSEMKT:BAA) reported 1.46 million shares were exchanged during the last trade, while the average volume is about 1.16 million shares. The stock dropped -2.07% and finished the day at $0.597. The beta of the stock is recorded at 1.61.
Sentiment: Strong Buy
Don't Look Now, But Banro is On the Verge (BAA)
Banro Corporation (NYSEMKT:BAA) has quietly, subtly turned itself into the next great opportunity.
Ever get that funny feeling about a stock, sensing it's on the verge of going higher without knowing exactly why? Add Banro Corporation (NYSEMKT:BAA) to the list of trading candidates with that certain "je ne sais quoi." While there's no specific news to point to and use as a reason to wade into a position in BAA, the chart is slowly creeping into bullish mode.
For those not familiar with it, BAA is a junior gold mining play. Specifically, Banro Corporation owns gold-mining properties in the Democratic Republic of the Congo. Unlike most of its junior exploration peers, however, this particular company is not only already in production ($119 million worth of gold dug up over the course of the past four quarters), it's been profitable in a couple of those quarters. Point being, there's a lot of potential here, either as a buyout target, or as a proven producer.
That's not what makes Banro so compelling right now, however. It's also not the rising price of gold that could make BAA a decent trade (though it sure doesn't hurt). What makes this stock so worthy here and now is that the chart is acting like it's going to cross above the 100-day moving average line (gray) for the first time in a long time. Yes, we've seen it fail to do so of late, despite a few attempts since the middle of last year. The subsequent pullbacks from those efforts have been getting shallower and shallower though. In fact, the most recent pullback from the 100-day moving average line was the first time in years that the next major low wasn't beneath the prior one. It's subtle, but it's a cue that the tide has turned. Take a look at the weekly chart.
Sentiment: Strong Buy