Timothy,
I think your questions are exactly on target. The problem is that BAJFF is a “startup” company leaving us with no history to compare happenings of the past. The only way I felt comfortable, was to find other similar copper companies, then compare their history to BAJFF. Not the most comfortable comparison I have done. I will say first, I believe in BAJFF and find they have taken every turn correctly in building this company. Top managers and CEO, to using local labor for daily operations. Funding is of top notch banking institutions with the support of many Canadian and USA Funds purchasing positions.
When I look at the possibilities of any company I try and take the most conservative approach that is not laughable. When I looked at BAJFF for 2013 Q1, I looked at what I expect the fair market stock value should be. BAJFF seems to be flying so far under the radar that a share price of $.90 makes no sense. Most investors are very pleased to have an annual return in the 30% range. BAJFF will need to do 400- 600% to hit my conservative estimate.
You are correct in saying that other companies PE range in the 16-24 times. I would not be surprised if BAJFF went to $4-6 in the course of one week. BAJFF is listed on the Toronto Exchange, not the New York Ex. If it was on the NYE, I believe the climb in price would of already been completed, and we would be looking at what amount of annual return BAJFF is anticipating and when a dividend could be paid.
I have labored over this stock for years, and have found no reason why this is selling at such a cheap stock price. Some investors quote the amount of debt however, that is already calculated into the stock price. With BAJFF’s cost of copper production being less than zero, -.29 cents to be exact, and the original “break even” amount calculated at $1.25 a pound copper price, the payoff of debt will move quickly. With the geographical location, shipping to the USA market will be one of the lowest.
I purchased more BAJFF this past week, and will keep on buying it. It is by far my largest holding. I am considering flying to Vancouver for the meeting, just to see if more information would be forth coming?
Best of luck,
Carl
AI
