Replies to post #5742 on Value Microcaps Junior Miners

[Doug Hauser]

I am long BN to tune of 25k shares and not about to sell but I am very stubborn not to take losses. Unless December and need em. I hope against hope that the results of future production can overwhelm the dilution effect. I'll say I have a sell at .68 for now dont laugh stranger things have happened.

On second thought lets drop the offer to .63 and get out prayer beads

[cl001]

BN made me sick.

First the company put up some insane number like PE=2 on its presentation, which was a lie.

Second the company never forthcoming about its recover rate, only put up some rumors that it is 85% something, which IR even can't give me an answer.

Then out of nowhere, it diluted its share count by 30%.

This is the company I don't want to deal with. Given the PP is at 56c, Desjardins has to support the shares at around 55c. I used the opportunity to unload most of my BN yesterday at 55-56c and bought some back at 52c, then unload again when it bounced back to 55c. Free money anyway.
But I don't feel like doing it again today, I am getting sick of the company. I am still holding 30K, probably will unload when it bounce back to 56c area.

[curlews]

BN.v - I have not sold any yet (65k). I still think this offering stinks, but I also see the stock as still undervalued. If I remember right, I'd seen a range of cash flow per share estimates for 2008 of .29 to above .40, assuming no crash in zinc price. Now with this additional dilution, that could drop as far as .22 to .30, or even a bit lower with the strong Canadian dollar. With the stock at .54, that is still a price to cash flow in the range of 1.8 to 2.5, or maybe as high as 2.2 to 3.0 adjusting for a 20% increase in the exchange rate. And now they have an extra $40MM in their coffers, with more to come upon conversion of the warrants. That will reduce interest costs, helping the bottom line.

I have not seen a strike price for those warrants specified in the PRs. Have I missed something? Is it above market?

[nosleep]

I sold out BN today and bought more TRX. i still think BN will do fine long run but I think now it's going to have the SAM effect, so many shares at .56 and so many warrants at .67 that it may take a long time to move past that trading range.

You'll get people who sell everything at .56 and up just to ride free warrants, and then you'll get people cashing in warrants at a later date making it tough to progress past .70. That's how i see it at least. I could be totally wrong.

I think TRX now has more upside potential through 2008 so i moved it there. Shame though, i like the east coast miners. I felt somewhat betrayed as a shareholder of BN.

Nosleep