keep an eye on the atw gold holding

fyi,

http://www.atwgold.com/investors/stock_quote/

As holders will be aware, BTV, whilst having a large bagful of cash and receivables, is still very much exposed to the gold price, through its holding in ATW Gold (TSX listed).

The price of ATW has almost tripled in the last few months, up 10 cents in the last few days ($200,000 to BTV) and is heading rapidly (back) towards the C$1.00 mark as it begins gold production in March.

Apart from the greater value of the holding itself in ATW, the C$1.00 mark is important to BTV, as it has option to take scrip rather than cash if the price of ATW is over C$1.00.

1,500,000 of these "cash or shares options" comes up in July this year. Another 3m in July 2010. But more valuable again are the 4,500,000 long dated cash-or-shares options for the payment in 2011. Any significant price rise above C$1.00 is money in the bank for BTV.


All this will be of little interest to most. BTV's price is so far under both its cash and book position anyway - so an asset that is quietly growing in value on the TSX is going to be neither here nor there to the legions of bored investors, and disinterested non-follwers of the stock.


Not to worry. Like most undervalued investments, BTV will make most of its gains in a huge hurry when everyone least expects it, due to a takeover, or acquisition. And then everyone says, "OH YEAH, I wish I has bought them when they were so far below their cash position and seemingly doing nothing."

Yes, well. Don't say you haven't been warned. :)