Greg; Bleak is an optimistic term. Read back for the past month(since the fall) and assess it for yourself. With 240M shares, negligible assets, and a real chance the Indon government will turf them out PDQ. The only hope is to get $ offshore and try to find a new property with value. It will need a huge DD effort to restore confidence in BRE-X, and all the money and trading will have to be offshore until the lawyers feeding frenszy abates(5-10 years)
The best bet is to make a NEWCO and give old SH a proportionate holding to their losses, and explore to find new mines. Even then the lawyers will get after NEWCO, as they chase the old money. And how many will give him any new money(immune from chase?, maybe he will fund it out of sympathy??) As a sideline I also sell good land in Florida, when the tide is out you can almost touch bottom. New investors in BRE-X may be interested in this land. It will become valuable beach fron when the next ice age drops the ocean levels by 20-30 feet. :) :)
I feel it will soon fade from the scene, trades fewer and fewer, no money for accounting etc, and just fade away. Associated Copanies will suffer a lesser fate and may even come back from the brink. But there are better bets in the market with more gain potential and less risk. Take Penn Gold, PNB on Vancouver. Huge mamganese property in Argentina near Chile. The Japanese are eying it now, and may make a deal this summer. Now at 80 cents, could be $10-20 in due course.(I do not own it, but gave it as a sample) Look at Moneta
ME on Toronto. A Barrick JV, now 60 cents, sure to make $2-3 later this year. or SAS in Toronto(St Andrews Goldfields), a producer at 60 cents sure to go to $2-3 over the next year. Far better bets than BRE-X and kin companies.
Bill |
