Sunday, December 11, 2005

Brandrill update

Primer on my investment outlook

I have a policy of only owning convertibles or other interest rate securities for the long term. I relaxed this for Brandrill. In a commodities boom, the companies that supply services and tools to miners make the most money and consistently so. During the San Francisco gold rush, the people selling shovels and tools made a ton of money..
Brandrill is underowned and unloved. Its the largest drill contractor in Australia. Next year it forecasts a profit of at least 1.5c. Its last close was 11c. Its could go to 30c and be reasonably priced..
Again, my cost basis is less than 6c a share so I already have a double here..


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