Yep, my arm is getting a bit tired.
But, I attended the first day of the GC conference (for which entry was free), watched most of the presentations and spent the afternoon session ( after DP's presentation ) at the BRK booth.
My take outs
1) Apart from Comet Ridge (COI), BRK was the only oil / gas stock in a sea of hard rock explorers.. Apart form Kingston resources, BRK was the only profitable, income producing stock . Pretty well every other stock was an explorer with a large, "company making resource " of something or other in the middle of now where , either just raised or looking to raise some cash. Most attendees were retirees, but there were a number of brokers, advisory firms, marketing groups.
2) Not much interest in BRK before the presentation apart from a few existing small holders and a few small investors that were new to the story.
3) After the presentation, much more interest... comments from all were the company seems unbelievably undervalued and can't fathom why it remains so.. For existing holders, all of which were underwater, I asked, if they thought is was so cheap, what is stopping them buying more?... all said because the stock wasn't moving... I asked would they buy more if the stock started to move, and all said yes. So it seems , despite the significant undervaluation, many/ most in the market who are aware of BRK are waiting to see the stock moving, and potentially pay a few pips more, before they commit more cash.
4) What was most interesting , at the end of the day, was a discussion with a member of corporate advisory firm that had a number of client companies presenting at the conference. DP was talking to another investor so this gentleman approached me and asked if i was with BRK?.. I said I was just a long term investor. We started chatting and he basically said he wasn't aware of BRK and wasn't particularly interested in listening to the presentation.... but said his attention was piqued when DP mentioned $16 million profit, $33 million cash, no debt and an essentially fully funded production pathway to increase production by 3-4 times over the next 4 years.
But what really made him sit up was when the presentation finished, one of his investor company CEO's, (who was a MD of a significant QLD gas company which was previously taken over by one of the QLD LNG gas companies) had spoken to DP, after which he said BRK was the best story at the conference, and so he had to come to chat to DP.
I handed him a copy of the MST Access research report. He immediately recognized the analyst and said this research paper was important and a very positive indication for BRK , because a report by that analyst carried considerable weight amongst institutions. He said he was an ex stockbroker, now working in corporate advisory and that BRK was exactly the type of company they look for and couldn't believe he had never heard of them. After another few minutes DP finished chatting to the other investor and had a long discussion with the advisor.
All this is meaningless unless something positive in terms of exposure, market awareness , interest generated . However, DP has said at the AGM and to investors at the conference, there has been had a significant increase in the number of calls from brokers, institutions who want to have a meeting with him.
Admittedly, most of the brokers want to be part of a CR, which BRK don't need to do at this time..... but there is no doubt, the story is getting out into the market place and a lot more brokerage, institutional awareness is becoming apparent, which can only be a good thing..
Cheers
Dan
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