Aston Bay Holdings Ltd V.BAY

BAY way too expensive

[wolftrader]

Aston Bay  holds 20% of Storm and American West holds 80%. American West has a market cap of about CAD 115 mn. If that is for 80% that means about CAD 29 mn for 20%.

As Aston Bay has roughly 200 mn shares (including the warrants in the money) or about 14 cents per share. Excluding the warrants about 16 cents per share.

So I sold BAY at 24.5 cents and I intend to buy back below 15 cents.

Is my calculation wrong?

[Patrick2Linton]

Assays Pending. Approximately 32 shallower holes left to complete and send in for assaying. 5 Deep holes of which 4 have been completed and are awaiting assays.  Hole ST-03 76 meters heavily mineralized awaiting assays.  I think both AW1 and BAY will prove to be undervalued at todays market valuation.   

[jeep91]

Always good to hear a counter opinion......thank you.

[wolftrader]

Thats not a counter opinion - that's simple math  I believe in the project but at the moment BAY is too expensive. So it is not rational  to buy. Very simple. You will make more profit with American West. Two weeks ago it was the other way round and I had the same math and bought.

[Patrick2Linton]

I do own both. AW1 just a little trickier to trade due to the fact I have to call a broker to do it and get charged. Although the OTC market seems to be getting more active but dont really like how the market makers enact trades on that market. To each his own. AW1 could have news Sunday night (our time) and BAY could follow with news pre-market and cause another chase.

[Patrick2Linton]

BAY should trade at a premium to AW1 as BAY's interest is carried through to a mining decision. They will not have to suffer dilution prior to a bankable feasibility study being performed and other costly studies. By the time all of the studies needed to get to the  decision to mine has been established, BAY's share price would likely rocket based on the economics of the project

[Moemoney42]

Exactly Pat.. you nailed it.. the 20/80 ratio has to factor in the fact that BAY is a carried interest.. no debt/funds needed to partake in the play.. ;-)

[wolftrader]

You are correct!  But at the moment BAY is way too expensive in relation to AW1. So if you believe in Storm it is better to buy American West at the moment.

[Patrick2Linton]

In the AW1 webinar, Dave hinted at a steady news flow almost weekly if they could keep up with the assay data coming back. Also mentioned that they hit 4 for 4 in mineralization so far in the Deep holes.  To each his own but I am not sure this is the best time to be without BAY shares. 

[jeep91]

I will leave others morn in the know about BAY to  comment on the calculations but time will tell concerning the buy back in at below .15c.