rockport1 wrote: Hey Guido, you are correct, Benchmark produces nothing. You are probably in error when you say it will take tens of millions to actually set up the infrastructure to be an actual gold or precious metals producer. I would estimate that is likely in the hundreds of millions, not tens of millions of dollars.
Not sure, but you sound as though you are a "newbie" in the junior mining space. It is typical of the sector, almost all companies in the space produce nothing, and if they were to develop a mine, it usually takes far more than you are suggesting. So, nothing new here. Any experienced speculator in the space knows this.
Benchmark does expect that their primary option is to be bought out. Actually, that is the typical model followed by the succesful juniors in the space; again no surprises there. You are only vaguely correct when you say only a small handful achieve this. I would say small percentage achieve this, but it is substantially more than a handful.
As far as valuation. I was going to share my metrics and modelling, but I suspect it would not actually matter to you. It is my own DD, and for now, I will keep it that way. What I will say, is that I forsee a potential downside from here at about 20%. I am targetting a minimum two to three hundred percent upside within the next year. For me, this is definitely a reasonable speculation, and likely a profitable one.
Should I be incorrect, I either take a 20% loss and move on. Or, if my re-analysis at that time does not change, I would likely add to my position. I generally like to take years long positions in stocks, because that allows me to ride my winners. However, in some cases, I do end up taking shorter term trading time positions. In fact, I have be in and out of BNCH twice in the last year; both quite profitable trades.
If you disagree with me, fair enough. That is what the market is for. You do seem quite negative on the stock, so I suggest you short it. As I said above, I personally think you are limited to about a 20% gain. However, you could margin, say at 50%, and increase the gains to 40%. I say go for it, Myself, a 20-40% gain would never be worth it against the 200-300% loss if I was wrong. Double that if you margin. But again, go for it, if you are so inclined.
Cheers!