small corporate raid target

Is BTV too small to be taken over?

I don't think so. In fact, if I could buy or finance a takeover at 14 or 15 cents, I would. No doubt about it.

At 15 cents, (a 50% premium to the price of the last 3 months), it would cost a predator $20m.

For that, you get over $15.4m cash back STRAIGHT AWAY, and you buy future proceeds of $10m or ATW shares in the next 3 years.

You also get over $10m in tax offsets (minus the tax payable on Gullewa and Thor sales, which will be less than $10m, so AT LEAST neutral).

You get Gullewa iron ore tenements.

You get 2m ATW shares (current value about $1.2m.)

So a predator would pocket AT LEAST $5m in future proceeds, some tax offsets,2m ATW shares, and tenements, for nothing.

And how would a predator justify buying BTV, for less than their NPV? How would they convince you, the shareholders?

Well, they would SAY exactly what others on this thread who have exited from BTV have said...the company has no strategic direction, they have not grown shareholder wealth etc.... So let us take that cash off your hands for you, in return for 75% of the cash value.

Or, they could offer scrip, so getting their hands on cheap cash, in return for 'strategic direction', which is whatever project the predator is trying to develop. There are plenty of asset rich but cash poor juniors out there...

Either way, BTV cannot stay at 50% of its cash value for long. BTV will either get taken over, or, more likely, BTV will announce a proposed acquisition of their own, thereby creating a 'strategic direction' for the company, and BTV gets rerated upward...

And EVEN if that purchase were poor - even if BTV bought an asset for $10m that is only really worth $5m, they would still be trading at 75% their cash value.

The downside risk is negligible. If BTV drops to 8 cents (that is, minus 17.5%) it would still have $25m cash/cash proceeds and would have a mcap of $10.6m.

The upside is BTV appreciates to its NPV of 19.3(a 99% gain). And that is JUST back to its cash backing, with no EV.

Even the directors have bought over $500,000 worth of BTV in the last 3 months, on the market, at current prices.

The fundamentals are compelling. Only fear, uncertainty and a lack of free investor cash keeps the price down.

disclosure: 1,300,000 shares. Last buy at 10 cents, last week.