Sorry to hear about Moly, (hope your health improves) and the health of RBM. Hopefully a white knight can recapitalize RBM soon.
RBM have good copper assets, and the outlook for copper is good. But assets don't pay the bills. Nor do future profits.
Many junior resource companies are in the same boat - they have spent their cash developing their resources, and now need to raise more capital. At the same time, a number of commodity prices have dropped, and we are in a bear market. So just when a share issue is needed, the sp of juniors is at rock bottom, and the only alternative is to raise money through share issues at ever lower prices. It is a negative spiral.
BTV
So once again, I scratch my head. Why on earth does the market value BTV's cash and cash proceeds at 50% of their value? Did we just enter a period of Zimbabwesque hyper-inflation? Or is $25m still worth $25m?
Apparently, $25m is only worth $12m...?
When commodity markets are booming, clearly assets (and esp producing assets) have a higher value than cash. But when it is a buyer's market, and a credit squeeze... ask yourself -
DO I WANT TO BE ASSET RICH/CASH POOR NOW, OR CASH RICH/ASSET POOR, AND BE SHOPPING FOR CHEAP ASSETS?
Wouldn't you like to be buying the shares you own now for the first time, at current prices? Or is everyone sitting on paper-profits on their portfolios?
THERE ARE OVERSOLD ASSETS AND COMPANIES EVERYWHERE!
Ironically, when BTV does invest some of its pile of cash, when it buys almost ANYTHING, the market will rerate it up, if only temporarily. It will then own a valuable asset to the value of $10-15m, AND have the money to develop it to production (if it isn't already very close) without having to raise further capital.
disclosure: thrilled to own 1,300,000 shares.
BTV: mcap $12m. Cash and cash proceeds $25m+. $500,000 of director purchases in the last 5 months, AT MARKET PRICES.
BTV Price at posting:
0.0¢ Sentiment: ST Buy Disclosure: Held
