Breakwater Resources LTD (BWLRF.OB)

I am not sure if this is the appropriate place for this post, but. . .

Theo, I noticed that you recently picked up a small amount of Breakwater Recources LTD. I could not help but notice the amazing growth that Breakwater has experienced over the past year and a half. It does not appear to be slowing down any time soon. I found the following article regarding Breakwater: 

link here


I am curious as to the large number of outstanding shares (385 million fully diluted), and how this will hurt (dilute) their prospects of future growth.  The current financials are outstanding, however I fear that the stock is too diluted. Can anybody prvide any insight?


sdemerga 

RE: Breakwater

sdemerga:

Yes I own a very small amount of Breakwater in my personal portfolio.  However, I can't really provide you any insight.  I bought it on pure speculation - one of my friends was adamantly bullish and so I looked at the growth numbers combined with a low P/E and took a tiny tiny position.  This friend of mine has a very interesting "hit or miss" technique.  I wanted to see if he was right.  (Kids, please don't try this at home.)


-theo

Breakwater

I just watched Jean-François Tardif, portfolio manager at Sprott, on BNN and he thinks Breakwater is cheap selling at 3x earnings.  He said the only risk here is the price of Zinc going down.  Other than that, Breakwater is making tons of money and the market is generally bearish on it for no good reason.


-theo

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