BGS was a great buy under 1c. It was one I liked last year when its market cap was under $2 million and the stock languished between 0.5c and 0.8c. BGS had great ground, proven management and upcoming drilling in a prospective area.
Even with a falling gold price and small resource sector getting decimated this company has rocketed 10x in size and 5x in price. BGS is now a $20 million dollar company and daytrader favourite. While there’s every reason further discoveries will send BGS higher, my feeling is that the risks are a lot more balanced from here on in. The story is well understood and history tells us that well discussed stocks on hotcopper are priced with reasonable efficiency.
So what will be the next BGS?
In searching for the next potential 5-bagger, one I’ve come across and like is OKU. Company has cash in the bank and market cap of $2 million. So very similar position to BGS when it was 0.5c late last year. Equally OKU has pegged some nice gold ground in Mali and has upcoming drilling planned.
Maybe one to watch for those looking to reinvest BGS profits. Thoughts welcome and keen to hear ideas on other potential 5 or 10 baggers people like in the rubble that is the Australian small explorer space.
Searching for explorers <$7m size with no debt, prospective ground, respected management and planned drilling in 2013.
I’ll add OKU, ERO and TKL into the mix. What are others ???
Latest OKU quarterly and their Mali gold ground attached. http://www.asx.com.au/asxpdf/20130430/pdf/42flqjc4gvt360.pdf
