Been investing in penny stocks, as well as the general markets, for nearly 40 years, so more than once I've seen scenarios very similar to what's happened with BZA's stock. And -- just my opinion -- the BZA price movements have been as much a reaction to macro conditions in the economy, and specifically in the gold market, as they've been a reflection of micro conditions within BZA.
The daily stock price has either been basically stagnant or down since it moved into the 70's range, while during that time the condition of the world economy has been the pinnacle of confusion for investors. There's been little to no surety that economic conditions in most countries, including some of the largest economies in the world, will break for the better or for the worse.
That lack of surety forces the price down, and the decrease in price mirrors the investors' capability for successful risk assessment in the stock... consistent profit in penny stocks is far more often a reflection of the investors' capability for risk assessment than a matter of luck or happenstance. And for the most part, penny stock investors aren't shy of risk. But when the process of evaluating risk is over-clouded by the high level of uncertainty that now exists in the world's major economies, then a great many penny stock investors are rendered nearly impotent in assessing risk, which decreases buy-side demand for stocks where the company's internal risk, in and of itself, appears to be an unknown quantity.
Due to the fact that news releases from BZA have been few and far between, the unknown risk has been magnified by the paradigm of overall uncertainty and risk within the general economy. You can easily see that direct correlation by studying a chart of BZA alongside a chart of the gold price during the past few years, knowing that the price of gold is the ultimate arbiter of risk assessment in the general economy.
In short, as general uncertainty in the economy begins to subside, and is replaced by an understanding of future economic conditions, and if BZA begins issuing a consistent stream of news on the Copperstone project and future plans, then the BZA stock will become more unfettered by risk in the mind of the average penny stock investor. Assuming that gold is at its currect price or higher at that point, and if the BZA stock is still languishing, then the stock could look like a good bargain.
Those who are more focused on the future than the present can envision that sort of scenario, and those who are more concerned with current conditions may be less convinced... or unconvinced. For my part, I can see good potential that the BZA stock will begin an upward march at some point when the uncertainty subsides, and it could very possibly be a dramatic rise if new zones are discovered at Copperstone, or if the current zones show a significant potential for expansion. That's speculation, but my distinct feeling is that BZA contains a much higher level of certainty than the economy.
My own certainty about BZA is related to basic facts about the company -- too many to outline -- but it has been strongly bolstered by the fact that they've easily and quickly received financing from large firms that are extremely careful about where they put their money. Those financiers pore through company books, take a magifying glass to the management, and hire experts whose sole purpose is to evaluate mining projects and prospects. So they've studied the company inside and out, and then decided to loan money to help BZA survive and continue... their actions alone reveal quite a lot about the future.