Re: $20,000 Cashiers Check, made out to me...what should I do with it?
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Here's a stock that will definitely keep things exciting. It's got great fundamentals, and it regularly swings 5-10% in a day.
Mines have serious environmental consequences. One of those consequences is that water gets into areas that used to be under the bedrock, which it becomes acidified and dissolves metals. The metals then run off into nearby streams, making the water poisonous. All mines these days are required to treat this runoff water. The typical way it's done is, the mining company mixes an enormous amount of lime into the water as it runs out. This congeals the metals into a hydroxide sludge, which then has to be warehoused forever.
Bioteq is a company with a new and better way to deal with this water. It uses biologically produced sulfides to reduce the metals, turning them into pure, marketable form. The remaining runoff water is safe to drink.
They make their money by selling the recovered metals, and the payback on a plant is incredibly fast. With today's metal prices, they can recover their capital costs in less than a year. In other words, they make 100% profit by year 2, and the plant just keeps producing more metals. The mine companies want to work with them, because Bioteq eliminates the cost they would have to pay for standard treatments.
Bioteq is still fairly small, but growing fast. They have 4 operating plants, and 2 more scheduled to open late this year. More are under construction or scheduled for construction. Based on my back-of-the-envelope calculations, Bioteq should have a 2008 P/E of 25, which is incredibly cheap considering their profits should grow 50% annually for the next 3 years.
The stock is only traded on the Toronto exchange, under the symbol BQE.TO. It's fun (or scary) to watch. Today it opened at 3.69, dropped to 3.50 in the morning, and climbed back to 3.89 by the close. Your $20,000 would have lost $1000, then gained back another $2000.
This is +EV, risky, creative, and will give you daily entertainment.
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WINNNNNNNAR!!!
good job!
Barron
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