Endeavour Financial Corp Recommendation: Buy
(TSX:EDV) Price: C$2.12 12 month target: C$ 4.40
A new West African gold producer
We live in a world that constantly changes and to us at O B Research it is very clear that the market often is slow to react to these changes, during the summer months this being especially true. Endeavour is a former merchant bank rapidly transforming into a mid tier gold producer in West Africa. They are in the making of absorbing Etruscan, a West African gold producer, and formally joining the ranks of gold producers. It is however viewed and priced by the market today, as a merchant bank without a clear focus. This view is to us no longer valid and we believe the market will come to the same conclusion after the quiet summer months are over.
This takeover bid also provides the conservative investor with an attractive opportunity to take a position in EDV. By buying shares in Etruscan and getting paid in cash and Endeavour shares, it provide us with a 5-8% discount compared to buying EDV directly.
http://www.ob-research.com/sites/default/files/Endeavour_Financial_July_27_2010.pdf
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I am a very small investor searching for a terrific gold stock that will have great momentum. There are so many I can’t choose. At this time I am holding BMG100 and a tiny amnt of San Gold. I am thinking of these:ELD, OGC,MTO or XGD the etf. Then I wonder about Silver Wheaton. Please suggest something for the really small investor as there are far too many choices and I am not certain an etf would have the kind of momentum. Any specific picks?
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