Yesterday I talked about the fact I pay attention to other things in addition to the chart and the trend a stock is trading in. I want to draw your attention to this recent piece of news regarding VEN.TO – Ventana Gold. We now have a billionaire buying shares in VEN.TO. By the way the newest press release of EBX Group states they bought additional shares so the total percentage ownership of the fund is now 10.2 %. The article is still very cautious. People doubt the company’s project. What else could you wish for? This is a picture perfect scenario for potentially explosive gains. The chart’s technicals are looking good. Price is breaking out of the bullish flag pattern. Odds are high we will see higher prices ahead.
If Ross Beaty and Eike Batista buy millions of shares you better hold on to your shares.
Here is the entire article from the Financial Post:
Brazilian billionaire snaps up 9.5% of Ventana
Peter Koven, Financial Post Published: Monday, July 20, 2009
Brazilian billionaire Eike Batista has snapped up a 9.5% stake in Ventana Gold Corp., adding to the hype of what was already Canada’s hottest junior-gold play.
Mr. Batista’s investment company, EBX Group, announced Monday it bought more than 8.2 million Ventana shares through an entity called 63X Master Fund. At current prices, those shares are worth more than $40-million.
The endorsement from Mr. Batista, the richest man in Brazil and one of the world’s most flamboyant billionaires, is another milestone for Vancouver-based Ventana, which has been the talk of the junior-mining world this summer after it made a high-grade gold discovery on its La Bodega project in Colombia.
Mr. Batista is the world’s 61st-richest man, according to Forbes magazine, with an estimated net worth of US$7.5-billion. The college dropout and speedboat enthusiast made his fortune in the resource sector, building an empire of companies involved in mining, energy and logistics that can all be identified by the “X” at the end of their names.
Last July, Mr. Batista was engulfed in controversy when police raided his home and office as part of a probe into government corruption and tax evasion. He dismissed the action as a “gigantic mistake” and weathered the storm.
Earlier in 2008, he raised US$4.1-billion in an initial public offering of OGX Group, his oil-exploration firm.
He is the second high-profile mining executive to take an interest in Ventana’s discovery. The first is Vancouver entrepreneur Ross Beaty, who owns more than 15% of the company.
Experts said an investment from someone with Mr. Batista’s track record in Latin America is another positive for Ventana, which has won over investors hoping that La Bodega could be the best discovery in years. But others remain cautious as drilling is still in the early stages.
The EBX announcement caused confusion as the company said it bought the Ventana shares in a private placement. Ventana later clarified that it has had no contact with EBX and that the shares were purchased on the open market.
Follow the smart money.
Have a great evening!
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