+ Watch BAA
on My Watchlist
The Company is a Canadian-based gold exploration company focused on the exploration and development of gold projects.
Speculation based on past trends
Ha, this is a speculative #yolo pick, based on last quarter's cash flow and the current book value. I seriously doubt this company is going anywhere, but if it is, there is lots of money to be made. So, like I said... #Yolo
Increasing production at main Twangiza mine, using that cash flow to fund production in its second Namoya mine with similiar plans for its 3rd and 4th mine.Looking at 120k ounces of gold produced this year, ramping up to 300k over the next few years.First mover in Democratic Republic of Congo, has been a very socially responsible company in developing infrastructure in the country.The M23 rebellion has dropped the stock from 4.50 to 3.20's and the rebellion seems to have subsided, not to mention the company has been operating in the jurisdiction for over 12 years. Target price $5.50-6 in 15 months
Banro will surely succeed with their current business model. The big "IF" in this investment is whether or not the Congo will be stable enough for Banro to proceed with their operations; I think that it will. With the proceeds of the Twangiza mine, BAA plans to develop a plethora of other properties. This will provide a strong future stream of precious metals and revenue. Their mine is open and operating, and the money is flowing in right now. With a cost of $500/oz, and the production of 120K ounces per year, BAA stands to make roughly $145million in profit for the year. With a market cap of $700million (SP of $3.50), BAA will have a P/E of less than 5! That is the lowest P/E of any gold miner that I have seen, let alone most stocks I have ever seen! BAA will succeed in due time. Just give them at least a year from now.
They have some cash, plenty of assets, not much debt. Now if they ever actually start churning some revenue and positive earnings, in their industry, this baby will soar. But, it looks like most of their cash comes from sale of stock, so, don't be surprised if until the point they start generating revenue/earnings, your stock keeps slowly creeping up, then drops via dilution, rinse and repeat.
Thay are at the right place to find gold
There has to be something good in Canada....right?
Mostly due to everyone else saying it will outperform in the short term - although short term investing is so fickle, I believe that there is sufficient data to give this an outperform rating.
This is another pick that I wish that I had made on 3/10, but it is still a solid pick to outperform in the long haul IMHO. A lot of the top members of CAPS are very bullish on gold, these are smart people they have to have good reasons. One reason is that Gold stocks are a hedge against inflation, in a time of record national debit, and at $1.66 per share this is one penny stock that is a gold mine in the works. Pun intended...
there's gold in them there hills. this is a speculative buy at taround $1.50 but could pay off 20X eventually.
I see a lot of upside for Banro considering the confluence of several factors. The potential value of their holdings in the DRC is well known, and the improved political situation in the Congo seems to be holding up. The main obstacle to production now seems to be the lack of infrastructure. If gold holds steady above about $600/oz for the next couple of years, then this should be a good investment by the time the gold starts flowing in 2011. I waited for some of the air to come out of the metals market before I made this play, which finally happened over the last couple of weeks. Continued uncertainty in world economies will keep gold prices strong for a few years, and dropping oil prices (mark my words) will help Banro and other investors build infrastructure in the DRC. Best case short term would be a high buyout offer by a larger producer based on those great reserves, but I think Banro's excellent local-based operations are going to be much better suited to the challenges of the congo political situation. This stock is dirt cheap right now.
I always like gold and silver stocks (ever since I figured out the long-term effect of US fiscal policy on gold and silver prices, anyway), and this one is 26% more attractive all of a sudden. I don't know why it's down 26%, but it's worth a shot.
I had picked this stock for myself almost two years ago, when it was doing nothing. Hopefully, if its holdings in the Congo start picking up, it may do well. Besides, it's GOLD.
Gold and silver have taken a sudden drop during the past week. Many speculators are panicing and claiming that this is the end of the "commodity bubble". I don't think so. If you look at the fundamental reason behind the last 6 months rise in precious metals, you have to ask yourself....has anything changed? I don't think so. The Fed continues to pump liquidity into the market, the interest rate continues to decline, inflation continues to increase and the dollar continues to fall. That being said....if due to demand decreases oil drops sharply from here...there is a possibility that precious metals will follow. Precious metals will experience quite a bit of volatility and the gyrations may be tough to handle but I think due to the fundamentals that I mentioned above that a year from now precious metals will be much higher.
Bush has totally screwed up the American and world economies. Hard assets in the long run are the only values that will survive his ineptness and will decline in relative value along with everything else. Remember his dream that every American have a house to call home? Now every American may face the strong possibility of a foreclosure and his or her savings being wiped out in bank and brokerage failures. To begin it all, he encouraged ARM's and tied the interest rates to the LIBOR rate which the federal reserve cannot even control and which operated in a higher interest ratge environment. Then the federal reserve for many months raised it funds rate and added to the acceleration of interest rate increases. The purchasers were suckers. Then start a war needing increased borrowing by the government and guaranteed to accelerate world oil prices, which benefitted Bush's friends enormously to the extent that even temporary oil oversupply does not even reduce the price for fuel. Watch the dollar fall, picking the pocket of all Americans not having savings in foreign denominated savings. Then make the bankruptcy process much harsher, to squeeze the last penny out of destitute borrowers. This, my friends, is the Bush economic miracle at work. The American bubble has burst.
Now that the Chinese stock market is in tune again with other bourses of the world and is going down, oil and gold will not be able to move any higher.
They bounce to much, but when the gold start seeng day light this will be the stock to own. Good luck all!
The co. is on a solid exploration & development program. I have concerns over thhe cost of recovery and infrastructure. The geopolitical situation is also of concern.
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