Wednesday, October 6, 2010

Batero Gold (from IKN74)

Ok, just a quickie and I'm out the door. This text is from IKN74 last Sunday, concerns our ongoing coverage of Batero Gold (BAT.v) and shows a little of what goes on at the weekly.

Batero (BAT.v): Making strong progress (and raising money, surprise surprise)
Since we first featured Batero Gold Corp (BAT.v) in the ‘Market Watching’ secion of IKN68, the stock has gone great guns (here right is the chart that shows the performance from then to now).

(chart not shown here on blog, but visualizes the six week run from the $1.20s to $1.90s)

It has been running a $10m bought deal placement first announced on September 24th (19) at $1.60 per unit (share plus half warrant at $2.35) but last week increased the placement (20), so assuming the original overallotment ($5m gross proceeds) is going to be filled as well, BAT is now looking to add $15.75m in gross proceeds to its coffers...all very tasty and good for anything the company wants to drill for the forseeable future.

Gold explorers are in a sweet spot right now and there are plenty of management teams out there raising cash on the back of the suddenly elevated share prices. Now, it’s your guess to my own as to whether this secular bull will continue, but it’s 100% unsurprising to see the sharper teams (that word deliberately chosen, as it’s a double-edged sword) out there adding cash and securing their medium-term futures as explorers.

BAT smacked of a decent opportunity when first highlighted, though not the profile your author personally prefers. Thusly it was featured as a headsup story in ‘Market Watching’ without making it to the formal ‘Stocks to Follow’ list. Here we are, six weeks later and the stock 53.6% higher. We’ll continue to outline opportunities without making them recos in the future, highly esteemed readership, because your author continues to be acutely aware that his way of investing is not the only way of investing.