FMJ, I hope you weren't implying I was jumping ship away from Buru towards OBL. I mean I did sell out of Buru earlier in the year on the rumors of the rig being released because it was obviously going to go lower. But in terms of Buru vs OBL as an investment that's certainly not the case. I'm pretty sure I've articulated the differences several times. The only and single advantage OBL has is the additional leverage. The reason they have additional leverage is precisely because they've performed so badly in every facet of the business. It's not a great thing to have more leverage because everything is so screwed up your market cap is $5M. That doesn't change the fact that the market cap is $5M though and it should go up more easily on some level of comparative success.
If you want to invest in the Canning then Buru is the obvious choice, but if you want to diversify your investment then OBL, KEY and REY all have their relative attractiveness for various reasons. I think OBL is a basketcase but they're still an ok bet if Buru's Laurel program goes ahead. They get a free ride on Buru's work and people will surely be looking next door at the $5M basketcase if they're successful. I mean nothing else is happening with OBL for another year and a half exploration wise. Doesn't mean i'd put all my eggs in that basket case though.
Put it this way, I stopped buying Buru to put money into REY when it was 5c to diversify things. That meant that as the Buru price fell my REY holdings doubled as they attracted interest. I was better off from having diversified even though REY is just a remora fish attached to Buru's belly kind of like OBL is to a lesser extent.
Of course atm Buru's SP itself is so low that it's leverage is four times what it was at the start of the year so there might be less of a compelling reason to go leverage shopping with Buru so low atm.
OBL Price at posting:
0.6¢ Sentiment: Buy Disclosure: Not Held
