About 1 month ago I had a serious look at BAU but didn't invest because I felt sometime wasn't right. Whilst I like bauxite & bauxite in the area BAU operate (even happy with old drilling results), I was not comfortable in checking where the leases were & the issue of bauxite ownership regarding freehold land, from memory first 100 feet belongs to land owner. Could see there would be opposition for exploration close to Perth (refer prospectus, exploration objections) & realized BAU would have to establish a working relationship with land owner (s) if bauxite was to be mined. Came to the conclusion many land owners may not have been as interested as in the outback, because compensation packages may not have suited all land owners. Easiest way would probably be to purchase freehold land then mine bauxite. Several ASX directors announcements(4/4/2008 & 20/5/2008) concerning Mr. Luke Atkins also confuse me. If I had a huge future winner in BAU why would I sell 3,750,000 BAUO for $37,500 & 250,000 for $78,378, effectively 4,000,000 BAUO for $115,878 made up of off market & on market transactions. If we go back to 4/4/2008 ASX announcement Mr. Luke Atkins again disposed of 325,511 BAUO @ 1 cent each off market. May be someone was being set up with cheap options, but transactions do seem a little strange. On 3/6/2008. ASX announcement refers to 8,257,000 ordinary shares coming out of escrow on 19/6/2008. ASX trade today for 19/6/2008 saw turnover of 533,528 shares with the price dropping 5 cents to 39 cents. Would have to guess todays turnover could have included some escrow stock as would normally be expected. For some reason I am not currently prepared to own BAU stock, whilst I can't give one key reason I seem to have concerns, "that sometimes when things look too good to be true they may in fact not be true". Whilst I wish all stockholders all the best going forward, I have found some of my best decisions have been the stocks I rejected. This post is not a downramp on BAU, just my views after researching BAU. Regards Buffett PS No investment advice given on BAU, please do your own research.
BAU Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
