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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: koan who wrote (21345)	9/18/2006 2:01:58 PM
From: BensonInvestor	Read Replies (2) \| Respond to of 78403

Answer - Why such an obsession with campbell? Campbell is also a current producer, producing from 2 mines. And Campbell will be producing from 5 mines by late 2007. They may add production from other satellite deposits. And they will also start seeing revenue streams from the 3 royalties they have arranged (in 1-2 years). The issue with Campbell is that the stock price has been artificially low because they have been operating in CCAA (Canadian Restructuring). But that status will change in the next few weeks – it’s very clear that Campbell will be emerging from CCAA soon. So you have a massively undervalued stock, which will emerge as a financially healthy company in just a few weeks. For comparison purposes, Stockwatch lists the PE ratio of BWR at 5.75. If you think that number is accurate, I would love to see your PE calculation for BWR. My calculations for CCH show a forward PE ratio of between 1 and 3. It’s probably close to 1. That’s very undervalued, by any measure. Mid-cap miners just don’t stay down there at that kind of PE for very long. Just to get to Breakwater’s PE ratio, Campbell will double, triple, or quadruple in price. And Campbell is a copper and gold producer. The gold miners have a historically higher multiple. This morning I posted two links to market comparables, by Bill Matlack. You can look at that and easily see Campbell above $1 (my target is actually $2 - $5). There’s nothing wrong with these other stocks. But none of them will see the same major event. When Campbell emerges from CCAA, many Institutional Buyers will take a fresh look at it. And the company will start promoting itself to Institutional buyer. You wrote… “CCH, looks to me like the kind of stock one wants to wait for some momo based on something substantive before jumping in. Otherwise one could sitting on dead money for a long time.” I invite you to look at the Campbell prospectus. One of the major themes in the Prospectus is that Campbell will work furiously to increase the production rate, and drill new areas. All three major areas will have major drill programs starting this year. I think we will see that “momo” you are talking about. You can also look at the website for Nuinsco Resources (NWI.TO). They discuss Campbell; Nuinsco is now an operating partner. When you read Nuinsco’s descriptions of Campbell, you can feel the excitement in every word.