Companhia de Minas Buenaventura SA (ADR) (BVN)

BVN is the ticker for Compania De Minas Buenaventuras S.A., a South American precious mineral mining company with most of their assets in Gold mining. With the increased volatility in the US Markets, gold has skyrocketed. Many of the American gold companies and mutual funds are either closed to new investors or their stock prices are astronomical to buy in at this time. However BVN has a very low price per share, and they are a foreign stock, which may insulate them from some of the volatility we are suffering now. It is important to diligently monitor gold trends, because as soon as the American consumer’s confidence in the economy grows and US Markets begin to climb again, gold prices will plummet.

There may be some times of uncertainty in South America from time to time but we used to own this stock and it did so well for us that we had to "rebalance." May buy it again. Still follow its news occasionally, and consider shares to be in the "value" range.

Tracking

HG-Type Screen results, 03/02/2007

http://boards.fool.com/Message.asp?mid=25245808&sort=whole

Back in September, I was looking for a good gold miner to hedge against the falling dollar. The two finalists I came up with were Northgate and Buenaventura. I picked Northgate because of Buenaventura's location and Northgate's lower P/E (and I'm glad I did, mostly because NXG's up 25% since then), but I'm now looking to add to and diversify my gold position. Buenaventura looks like a great choice, considering their low debt, low P/E, 2% dividend, and current uptrend. Hopefully that nutjob in Venezuela can keep his grubby fingers off of my stock, and it will appreciate nicely.

pulls gold out of the ground for $150 and sells it for $400. Margins are holding steady in the stratosphere around 38% and operates as the largest domestic miner in an oligopolistic environment.

The big risk that everyone is worried about is if a leftist government decides to impose stricter regulations / take over the mining industry. But BVN in my opinion is more protected from this risk than foreign mining companies, as it is controlled primarily by Peruvian citizens, and the board of directors includes many ex-government officials who held powerful roles.

With the market's feverish pitch and that nagging inflation not going away--I wonder why with such a tidal wave of liquidity floating around the world--gold will resume its upward trend. BVN is about the cheapest mining company of all out there. Political risks are overblown.

There are many other gold mining companies that have better prices than this one. Particularly AUY.

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.

A South American gold mine with other base metals as a bonus, undervalued and in a dip according to its chart. A great place to start building a position.

Gold and silver will be on a 5-year rampage starting NOW. Mark my words!!!! As oil increases, so will gold. Why? Because those countries that profit from the sale of oil take their cash and turn it into something real -- namely, precious metals. The last thing they want is paper money! But I like gold and especially silver MORE than oil. Why? Because oil has alternatives. They're working on them every day. There is NO alternative to a precious metal. You either have it or you don't. And it's extremely rare and valuable. Get yourself some silver and gold and hold on. It's going to be a wild but profitable ride!!!!

South American gold and silver mining company... handles the current deflation pretty well for a huge inflationary hedge. This balances out some of the near-term market sell-offs (which may not be over yet) in more industrial type commodities, foreign companies, and US companies with high exports.

I am very value oriented, also skeptic that USD will slide in many years to come.

That lead me to invest in gold stock. Picked BVN because of it got to love it PE ratio.

After owning the stock, found out that it has such low PE mainly because

1. It headed most of it gold production in future controct already
2. It is aforeign company (non US)
3. It operates in a politically unstable country.
4. Falling gold productions

After knowing all that, I still think that PE of 8 to 10 is too low for this gold mining stock. Remember, this is the largest gold miner in Peru (which is the 5th largest gold producer in the world.)

Now, let me make my bull arguement.
1. It has de-hedged 2007 to 2009 positions
Based on that alone, does it justify that BVN should now has a PE of 15 or higher ?
2. Non US company, would that be a bigger positive for this company, if USD tanked, the deeper the tank the merrier.
3. I think the politacal uncertainty has improved significantly, since Garcia is handed with a Peru in a booming economy
4. Falling gold production is not becasue there don't have gold, it is really about the farmers are making noices about BVN mine are polluting all the crops. Remember, this is Peru, you can buy those farmer off with just a few K USD. As BVN final product is GOLD, which trades at $670/Ounce today.

I already owned about $40K in BVN stocks, (8k is profits) but now is seriously thinking that this baby will double up (provided that gold price remain the same.)

I hope that some one can rebut me with good arguement, if not, I will have to buy more BVN.

rated highly in my research-bullish on precious metals

I'd like to pick up this stock under $28.

* an actual gold/ silver mining company with solid fundamentals
* relatively low price ratios vs. industry
* non-dollar exposure
* diversified currency income base
* nice growth rates within industry
* great short and long term investment returns (17.4% ROA)
* solid profit margins (40% net profit)
* 33% insider ownership (top 5% of holders)

Guessing!

:)

Buena Ventura --- I don't know precisely what this means in Portoguese, but this Brazillian gold miner is huge, has seen mosnter gains in recent years, and yet still boasts one of the lowest P/Es in the entire gold sector.... And with nothing but more of the same outperformance, and free gains built into their ADRs because of the falling-dollar, BVN should easily be over a hundred within 18 months, and could be 150 or more....

Gold is on the rise right now so they have limitless possibilities.

Bullish on gold as long fed keeps printing money we don't have.