ckeck out another good ann. for bol, page-14

Hi ivan965,
To correct your figures/comments: The BLY offer was at 27c not 30c. The price did drop down as low as the issue price for a few days but there was adequate opportunity to make an immediate profit. For those who held on for 2 months, it is now 30% above the issue price. You should also recall that the BLY offer occurred in two stages like BOL. During the initial Entitlement offer the BLY price stayed above 30c. (BOL is at this point now) It was only after the subsequent SPP that it dropped down to the issue price. (End January on BOL's calendar)

I agree that the BOL offer has similarity to the BLY and Elders offers (both of which are characterized by dilution significantly greater than 1:1). Even though I considered ELD and BLY to be dogs, I invested significantly in both offers and made excellent profits.......There are however major differences that in my opinion the BOL offer a great deal (not a dog). Having said this, I agree the BOL price may drop next week because of the weight of selling during a week when most buyers will be on holiday.....I do not think it will get near the 30c issue price.

I see BOL as a much better offer than BLY because:

1) The BLY offer was overpriced and the directors were relying on a huge rally that occurred a few weeks prior to the announcement. BLY had been as low as 6c during the crisis and the 27c offer price was opportunistic and poor value. (Check the graph!) In comparison BOLs offer is very close to the lowest price paid during the crisis and represents great value.

2) The BLY SPP was left open to new investors who came in after the initial entitlement offer. This brought a large number of people onto the books who were only after quick profits and sold up immediately after the issue. The BOL offer was closed prior to the initial trading halt and more of the shareholders will hold onto their shares.

3) BLY was making losses. BLY gave no guidance about future profits and had no good news. There was nothing on which to base the value other than hope! By comparison, BOL has clear guidance, lots of recent good news about contracts and a growth strategy inclusive of the new cranes. BOL has outstanding cash flow, even at this stage when its profit is very low.

4) BOL has a takeover offer on the table! Acaleese Investments put a 60c offer to the directors and it was considered inadequate. (This equates to about 45c on a fully diluted basis) There is a good chance they will come back with a better offer after the SPP in Feb. There is a lot to gain by sitting on the shares and waiting to see if Acaleese come back with something between 50-55c in the first half of 2010. (BLY of course provided nothing like this chance!)

5) BOL has net tangible assets of 87c share.....around 52c on a fully diluted basis.

I could make detailed comments comparing it to ELD but ELD was so close to being wound up that there is no real comparison to BOL. BOL appears to be in good shape and ready to capitalise on the recovery of the mining sector.

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I am not an advisor. My comments cannot be relied upon. They are opinion for the purposes of debate.