From today's Globe and Mail:
Tuesday, April 4, 2000
Diamonds in the rough: Diamond stocks haven't been investors' best friends so far in 2000. A report dated March 23 by Jack Jones, an analyst with CIBC World Markets Inc., says shares of the world's six largest public diamond companies have fallen by about 17 per cent to date in 2000. "The strong demand for rough diamonds in 1999 has continued into 2000 and is backed by a solid economic outlook," he said. Also, "there appears little imminent new production coming on stream, while rapidly depleting stocks at De Beers points to an increasing potential for diamond price rises later this year." Furthermore, restructuring and acquisition activity is increasing in the industry, which suggests rising underlying value, he said. He rates De Beers Consolidated Mines Ltd. (DRBRS--Nasdaq) a "strong buy," Dia Met Minerals Ltd. (DMM.B--TSE) a "hold," Aber Resources Ltd. (ABZ--TSE) and Namibian Minerals Corp. (NMR--TSE) a "speculative buy," Ashton Mining of Canada Inc. (ACA--TSE) a "hold" and Rex Diamond Mining Corp. (RXD--TSE) a "speculative hold."
PHIL |
