BTR: Big Gain in a Small Cap

BTR: Big Gain in a Small Cap

In the world of stocks that are labeled with the tag “junior miner,” there are the haves and have nots. Well, even the have nots have something. Usually it’s a lot of bluster, fluff and posturing about some outlandish that stands little chance of occurring, a strategy that is employed to mask shoddy fundamentals. The haves actually posses legitimate credentials and fundamentals that result in a sound investment thesis.

Such is the case with BonTerra Resources (TSX: BTR). Canada-based BonTerra is a perfect example of a gold miner that has gone relatively unnoticed as gold prices close 2010 up more once again, capping a decade-long bull run, the likes of which has not been seen since the 1920s. No pun intended, but BonTerra really is like an undiscovered gold mine.

Smart buyers are already taking note of BonTerra. The stock’s average daily volume, already exceptional for a stock of this nature, has remained robust during gold’s little retreat and even more impressive than that is the fact that the shares found their way to a new 52-week on Monday.

In fact, in the past three months, BonTerra shares have more than tripled while shares of the SPDR Gold Shares (NYSE: GLD), the most heavily traded gold ETF, have remained flat. Look at BonTerra’s price tag, then GLD’s and you’ll see that risking far less capital with BonTerra would have resulted in vastly superior returns and that’s a scenario that investors crave, but can’t always obtain.

With strong fundamentals and a gold perhaps poised to run higher in 2011, BonTerra is a stock worth watching in the new year.

For additional information on BonTerra Resources Inc. (TSX.V: BTR) visit http://www.stockorange.com/client-profiles/btr

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