drbubb Posted May 24, 2006 Report Share Posted May 24, 2006 (originally posted on HPC, on a thread talking about Property in Bulgaria.) I have invested a fair amount of money in Bulgaria. But my investment is through a mining company called Euromax Resources. Because I doubled my investment when the stock price collapsed to under 20 cents, with the stock near 40 cents, I am now nicely in profit. Now I think this investment has high potential, because previous drilling has shown great results, and a new round of drilling is going to start soon. Why did it collapse? And bounce back? A power local guy decided two yaers ago after the first round of drilling, that he wanted the property. He created a disturbance locally, and was able to get the local court to issue an injunction which halted the drilling. The stock collapsed. The EOX chief exec is a plucky Australian called John Menzies. He refused to let his property be stolen, so he fought back. This meant getting the local communiity onside, and using what poolitical connections he could muster. Since EOX is a Canadian quoted company, he was able to get the Canadian ambassador to deliver a letter to the Bulgarian PM, who promised to look into the matter. About two months ago the injuction was lifted. EOX is moving forward to drill its property again. The Bulgarian courts can be made to work, and local gangsters kept at bay. But only by those who have courage and fight their corner. The other lesson is that Bulgaria is keen to become a full part of Europe, and at the highest level is working towards removing those local influences that make it unpalatable. This is a slow process, but progress is being made. Would I buy Bulgarian property? Yes. But only if I was sure I had spotted a bargain, and I knew something about the area I was buying into. Do not buy on first sight. Travel there first, get to know the area. Link to comment Share on other sites More sharing options...
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