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Glen, I chose Bresea because it is probably the most undervalued of all the Busang plays. This is based solely on its 50 million Bre-X shares and 80 million float. Based on the Bre-X shares alone, Bresea should be worth 60% of Bre-X, however, its always trading in the 45-55% range. This does not include Bresea's other properties (JV with Diadem etc) and its cash holdings. My reason for picking Bresea is on the hope of a major acquiring Bre-X, because that would nullify the tax factor and the dividends from the major will flow to Bresea and hopefully to the shareholders in the case of special dividends or dividends. Minorca is also a good buy but not at these prices (upside to $6-7 from current $1.60), Bresea ($7+++ from current $1). Bro-X is a good speculative buy but it is only an exploration company, they are not part of the Busang gold find. However, if the Busang gold is there, all juniors, BNO, SCP, DIR, TWG, BXO will jump, and probably 2x,3x depending on how much gold there is.
Just my opinion, again, all of them have similar risk/reward/tax/complication ratio. But my pick of the year is Bresea. Downside 50%, upside 1000%. Cheers |
