Analyst Blog Review for Bryn Resources Inc. (BRYN)

Bryn Resources Inc. (OTC PK: BRYN)

Bryn Resources Inc. (BRYN) engages in gold and silver exploration currently focused in the United States, the central Nevada region and Canada. Founded in 1995, the Company was formally known as RnetHealth Inc. and is headquartered in Richmond Hill, Canada.

Share Statistics (30-Nov-09)

FY

2007

FY

2008

%

Chg

Q3 2008

Q3 2009

%

Chg

Symbol

BRYN

Revenue, $Mn

n/a

n/a

n/a

n/a

n/a

n/a

Current price

$0.73

Gross marg.

n/a

n/a

n/a

n/a

n/a

n/a

52wk Range:

$0.02-2.00

Oper. margin

n/a

n/a

n/a

n/a

n/a

n/a

Avg Vol (3m):

373,447

Net margin

n/a

n/a

n/a

n/a

n/a

n/a

Market Cap.

78.36M

Dil. Shares Outst.

380k (*)

EPS, $

n/a

n/a

n/a

n/a

n/a

n/a

Source: Reuters.com, SEC Filings.

* Latest data of 2001 SEC filing

Financial Summary

Financial Strength (27-Nov-2009) Company Industry Sector S&P 500
Quick Ratio (MRQ) n/a n/a n/a n/a
Current Ratio (MRQ) n/a n/a n/a n/a
Long-Term Debt to Equity (MRQ) n/a n/a n/a n/a
Total Debt to Equity (MRQ) n/a n/a n/a n/a

Source: Reuters.com, SEC Filings.

Analyst Consensus

No analyst covers BYRN at this time.

Investment Highlights

Today’s Gold Market

In 2008, world gold production output reached 76 million ounces, falling each year since peaking in 2001 at 83 million ounces. Most recent statistics confirm that production levels may not increase for some years. Talk of peak resources, once centered on oil, now include gold and other precious metals.

Once dominated by South Africa for many years, 2008 gold production statistics show China, at 12.2% of total global production, is now the largest producer of gold in the world, followed by the United States at 9.9%, South Africa at 9.8 %, Australia at 9.6%, Peru at 7.4% and Russia at 7.0%.

Market demand is driven by three factors, including jewelry (mostly from India), investment and industrial demand. Investment demand remains as the primary factor for record prices, both in nominal terms and real terms. During times of monetary inflation and central bank balance sheet expansion, investment demand increases and becomes the most important source of demand for ever higher prices in a gold bull market.

Since the popping of the NASDAQ equities bubble of 2000, central banks worldwide increased money supply at rates not matched since the decade of the 70s, as central banks fight to protect consumer spending and economic growth. As a result of easy monetary policies of the world’s central banks, investors, money managers, sovereign wealth funds and, just recently, central banks, have been purchasing gold as an inflation and currency hedge against further declines in the U.S. dollar and other currencies loosely pegged to the dollar.

At its peak in 2008, money supply grew by double-digit rates in almost all significant currencies of the world. Today, preservation of wealth has become an important strategy against further financial system failures and debasements of fiat currencies, not just in the U.S. dollar, but currencies worldwide.

Trading partners not wishing to experience the headwinds of a strong currency against the dollar have debased their countries’ currencies as well. For the first time in history, almost all central banks have embarked on a currency debasement policy in response to the U.S. Federal Reserve’s policy of “quantitative easing,” or money printing-the prelude to future inflation. Gold remains as the ultimate hedge to higher commodities prices, taxes and declining purchasing power parity with other nations.

After the “deflationary scare” of the first quarter of 2009, which continued into the entire second quarter-brought on by the liquidity crisis following major financial institution failures-investment capital has now moved back into the commodities market, especially the markets traditionally attractive to currency debasement havens such as gold, silver, oil and other commodities. For more than 5,000 years, gold always takes on its intrinsic role as real money, and is the only store of value with no counter-party risk.

Latest Company News

Bryn Resources Inc. Executes a Letter of Intent with Montauban 4 Properties

In a November 27 news release the Company reports that initial documentation indicates that the The Montauban 4 Properties has approximately 38,800 ounces of gold and 357,000 ounces of silver in reserve. At present market prices, total extracted reserves could reach approximately $52 million in revenue. The Company plans on negotiating the finalization of the Joint Exploration and Development Agreement to verify and accurately quantify the reserve totals it expects to acquire.

In the same news release, the Company also stated that it continues to develop its British Columbia properties and anticipates releasing an update to investors shortly.

Technical Analysis

BRYN trades above its 13-day moving average. This bullish sign is significant because the 13-day moving average is upwardly sloped.

The MACD for BRYN currently indicates a bullish signal. The MACD is above the signal line, a 9-day moving average of the MACD. The MACD is above the critical level of 0, which implies the past price action has been positive. Overall, the chart is bullish.

Comparative Analysis

Company Name

Ticker

Price/

Mrkt. Cap.

P/E

P/S

Nov-30-2009

symbol

Share, $

$ Mn

2009

2010

2009

2010

AngloGold Ashanti Ltd.

AU

44.52

16,290

n/a

23.07

4.02

n/a

Gold Fields Ltd.

GFI

14.47

10,200

29.53

21.28

2.46

n/a

IAMGOLD Corp.

IAG

18.68

6,870

96.29

27.88

8.01

n/a

Gold Median

30.76

n/a

8.01

n/a

Bryn Resources Inc.

BRYN

14.51

127.44

14.51

11.61

2.19

n/a

Source: Thomson Financial

Insider Trading Activity

NET SHARES PURCHASE ACTIVITY

Inside Purchases – Last 6 Months

Shares

Transaction

Purchases

n/a

n/a

Sales

n/a

n/a

Net Shares Purchased (Sold)

n/a

n/a

Total Insider Shares Held

n/a

n/a

% Net Shares Purchased (Sold)

n/a

n/a

Net Institutional Purchases – Prior Qtr to Latest Qtr

Shares

Net Shares Purchased (Sold)

n/a

% Change in Institutional Shares Held

n/a

Source: Yahoo Finance

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