fat prophets - buy

I just found this on the MUN thread, it's apparently from the most recent Fat Prophet report recommending that MUN be sold and CHN be bought.

Outlook (this is referring to MUN)
It is one thing to report positive EBITDA numbers, but another thing to generate free cash to re-invest back into the business. The company reported a negative net operating cash flow of ($A0.82m) of 3Q09 (1QFY10).

We are concerned that the company’s cash position at the end of the September quarter was only $A1.17m. The company needs to raise significant new capital to meet its corporate objective of 200,000oz of gold production per annum. A share issue is probably just around the corner.

The company has excellent exploration potential with plans to grow the business. However at this point in time, we see the risks as too high for Members. The company's activities are capital constrained.

We recommend switching into Chalice Gold Mines (ASX: CHN). Accordingly we are changing our recommendation from HOLD to SELL for all Members.