Investors Taking Note of Kent

BullMarketRun (10/25/2009)
"Investors are finally beginning to take notice of Kent Exploration (KEX, TSX-V), which broke out Friday, October 23, to a new 52-week high on massive volume of 4.3 million shares (it closed at 20 cents). We stress the word 'beginning' because in our view, as we reported on October 19, this company represents an incredibly intriguing and exciting investment opportunity.

With a market cap of just $6.4 million, our analysis is that Kent is still grossly undervalued and Friday's breakout confirmed that a powerful bull market phase for this stock—quite possibly a dramatic phase—has indeed emerged.

Kent is clearly a special situation. . .This company went public in August, 2006, and took advantage of the financial crisis to add very valuable projects at minimal cost. The fundamentals and prospects have changed dramatically with this company, and the market is going to reward it with a significantly higher valuation as a result.

The Alexander Prospect, which includes the old Alexander Mine that produced about 40,000 ounces of gold prior to closing in 1943, was estimated by Macraes Mining (the precursor to Oceana) to contain an inferred (non-compliant) resource of 643,000 ounces of gold. We're also keeping a close eye on what Kent is doing in Australia with Teck as the two companies have partnered on the highly prospective Gnaweeda Gold Project.

The current drilling program at Flagstaff and the search for high-grade gold there has the potential to produce a dramatic upside move in the stock price. And we believe the Alexander River Project in New Zealand is going to prove to be a big winner for Kent and its proposed spin-off, Archean Star Resources."

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