Bowmore Offers More

Aug 19th, 2009 – Comment

Hi Lou, I would love your input on this stock that I am holding. There is a small float and I see nothing but recommendations on the bull boards which is very unusual for any stock. Thank you, Alvin Hi Alvin, First thing to keep in mind is that in general there are no recommendations […]


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bowmore

Hi Lou,

I would love your input on this stock that I am holding. There is a small float and I see nothing but recommendations on the bull boards which is very unusual for any stock.

Thank you,
Alvin

Hi Alvin,

First thing to keep in mind is that in general there are no recommendations on bull boards. There are comments, both good and bad, there are rants,taunts, and at times good evaluations and at others bad evaluations. But there are no recommendations. Bull boards are a place where investors exchange ideas and emotions. I’d hate to see you lose sight of the risks of investing in a junior exploration company because of the excitement generated on a board.

Having said all that there are a number of factors that make Bowmore Exploration Ltd. ( BOW TSXV)quite interesting. The fact that Osisko Mining ( OSK TSX) took a large position in a private placement in the spring giving them 40.6% stake in BOW if all the warrants are exercised. Of additional interest is that Goldcorp Inc. ( G TSX) has taken a significant position in OSK.

What this tells me is that some of the better minds in the gold mining industry like the opportunities that are emerging through BOW and that makes a very good case for further due diligence and evaluation.

bow21

The three year chart shows a stock that had very little going for it in terms of price appreciation until the news that OSK was a buyer hit the market. Winners always attract a crowd. You can also see a very clear pennant formation that in the majority of cases signal a continuation of the uptrend.

bowThe three month chart shows the MACD turning up and good support at $0.70. Sure the average daily volume of shares traded could be hire but maybe that’s just getting a little too picky.

A speculation in BOW has better than average pedigree of management and allied investors, good drill results from their Santa Elvira property in Mexico, support at $0.70, and a long pole and pennant on the three year chart.

As you know Alvin I look at a lot of stocks for investors and I want to thank you for bringing this to my attention.

Happy Capitalism!

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