Winspear Resources Ltd -
Kaiser says Winspear must have good results
Winspear Resources Ltd
WSP
Shares issued 39,238,388
1999-06-04 close $4.82
Monday Jun 7 1999
John Kaiser, writing in a May 31 Bottom-Fish Tracker, says the decision by
Winspear Resources to spin off its non-core Diamondex subsidiary can mean only
one thing -- that Winspear's management has seen enough large stones come out
of the 6,000-tonne bulk sample to be confident that the final result will not be a
disaster. Mr. Kaiser has followed Winspear's fortunes closely since he started his
newsletter in 1994, recommending it seven times from a high of $3.16 in
February, 1997, to a low of 46 cents in June 1998. Mr. Kaiser says given the
lawsuit against its Snap Lake partner, Aber Resources, Winspear may be on the
hook for the entire $12-million bulk-sampling program costs. "Unless Winspear
succeeds in refinancing its itself before the valuations were obtained, most likely
through the exercise of warrants, the company could be broke by next
September," he says, adding that the $1-million in cash Diamondex will take with
it will not go far. As for Winspear's recent price surge to over $5, Mr. Kaiser
suspects someone has leaked good news to the "religious cult" that follows Snap
Lake.
(c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com |
