The BarkerLetter

Here’s a stock whose time has come – Cabo Drilling Corp, or CBE.TSXV.

Cabo spiked today on news of a drilling contract with Bellhaven Copper & Gold Inc. (BHV.TSXV) in the Republic of Panama. That entails 5,000 meters of drilling on Bellhaven’s Cerro Chorcha and Rio Liri properties located in the Western Highlands of Panama.

I’ve been following Cabo off and on for about 10 years, and I thought its move into the drilling business a few years back showed real vision by president John Versfeldt. I thought so then and I think so now as well.

Share prices of the big suppliers such as Major Drilling have languished of late but there is definitely room for an aggressive start up like Cabo, which owns a handful of subsidiaries in various regions of Canada, plus Mexico and Spain and now Central America.

It has a market cap of $13.9 million Cdn., which is less than half its yearly revenues, and the stock is trading at less than its book value, barely 0.40 times earnings.

Last month it spun off its former exploration properties into a wholly owned subsidiary, International Millenium Mining Corp. (IMI.TSXV), so shareholders also get exposure to an expanding mineral play.

It doesn’t hurt to have shares in a driller that also owns a mineral exploration company.

Looking good!