BSR

The best stocks to buy in the long run are those that have value in them yet are grossly under-priced by the market. Before the Japanese market crashed, the PE ratios for many stocks were over 100.

But resource stocks are rarely income producing. However, if there is proven mineral wealth in the ground, there is a value attached to it. And if each time, it discovers more valuable deposit but its share price continues to fall, then you know some investors are being stupid.

There are MANY stupid investors in BSR and I absolutely adore them.... while I am not forced to sell any. If you list tomorrow in the ASX and you tell the market that you are exploring in West Africa, people will invest in your company. Yet, if you tell the market that you have found gold and finding more, those same investors are selling down their holdings.

Sometimes, when something is too good to be true, they are not true but with BSR, it is definitely stupidity and it is real! Unless, the board of directors are lying or fudging figures.