Dahlman Rose Bullish On General Moly (GMO)

Dahlman Rose & Co. is bullish on shares of General Moly GMO as the molybdenum miner reported earnings last week. Shares of General Moly are rated a Hold. In the report, Dahlman Rose notes, "General Moly continues to make progress with the development of its Mt. Hope project. Management is doing an admirable job with the permitting, financing, and engineering of this project, but significant risk remains as the company transitions from an exploration to a development company." "The company reported a 2Q10 loss of $(0.04) per share, in line with our estimate. Of greater significance is the company's NAV which we calculate to be $9.20 per share. With a substantial disconnect between the share price and the value of the company, we believe that the slight delay in realizing the 25% investment from the Hanlong Group may provide a window for the company to be acquired. While we believe that management is doing an admirable job of shepherding this project toward production, we believe that substantial headline risk remains as the company transitions toward a development company, which could negatively impact the shares." Shares of General Moly closed at $3.32 on Friday.