SOUTHERNERA (t.SUF) Message Board

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Gold/Mining/Energy : SOUTHERNERA (t.SUF)

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To: gemsearcher who wrote (3984)	7/13/1999 4:53:00 PM
From: Shaw	Read Replies (1) of 7235

FWIW gemsearcher, I think we have already had the "blue sky" run up for SUF a couple of years ago. In early 1996 to August or September (if I remember correctly) the share price tripled to $20+. That seemed to be the speculation stage (much like the current speculation stage on WSP). Now it seems we are in a value play. With that said 4, 5, 6X earnings ain't exactly comforting!!! My prediction for the next 6 months is: one of two of these things will happen: 1. A U.S. value manager will step in and buy SUF as a fundamental value play. Since all analysts are lemmings we will see several bullish research reports and the share price will approach traditional diamond producer valuations. 2. An offer for SUF @ $7-$9/share will surface which will be summarily rejected. Whatcha think??? Dean PS: teevee: I believe that you would like to see SUF valued at a proper multiple. That is good for the whole diamond market, isn't it?? What if WSP finds a mine and begins producing??? If it's valued like SUF (crap multiples) and is earning a couple of bucks/share, that means the 'Spear (in 2003 or whatever) will be trading at $5 or $6. Not exactly a good long-term hold!!!!

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