KEX: Significant Upside Potential, Minimal Downside Risk

BullMarketRun (10/19/2009)
"We know this sounds almost too good to be true, but thanks to technical analyst Clive Maund—one of the best in the precious metals business—we have come across a junior exploration company that presents one of the most intriguing investment opportunities we've seen in this current cycle. Incredibly, it is trading at just 16 cents and has a market cap of only $5 million (but not for long).

We say 'incredibly' because:
  1. This company is currently drilling into some rich historical drill holes that returned such stunning results as 1.3 ounces of gold over 18 metres;
  2. This company is very close to generating substantial cash flow from barite reserves of at least one million tons. In fact, as far as we know, it is the only publicly-traded company in North America that can produce high-grade barite;
  3. This company has just partnered with a major—Teck—on the highly prospective Gnaweeda gold project in Western Australia;
  4. This company has just recently acquired a New Zealand gold property (a former producer) with an historical inferred resource of 643,000 ounces.
But wait, it gets even better. This company is progressing so well, it's about to give its shareholders a dividend! Yes, a dividend in the form of shares in a publicly-traded spin-off that will hold and develop its very promising Australian and New Zealand gold properties.

The market, in our view, has clearly not factored in the good possibility of a gold/silver discovery at Flagstaff, nor has it fully grasped the significance of what Kent has assembled in Australia and New Zealand—a substantial package of high quality gold prospects in proven gold camps, and a very advanced situation at Alexander River with ounces in the ground.

At its current price—only 16 cents—Kent offers very significant upside potential and minimal downside risk, so the risk-reward ratio here is very attractive. The fundamentals should drive this stock to considerably higher levels, as the technicals also suggest in Clive Maund's analysis."

 PRINT THIS PAGE   EMAIL THIS PAGE

Under SEC rules, analysts are required to disclose their interest in securities that they cover. We strongly encourage you to contact them to understand any potential conflicts of interest they may have.

Related Quotes: