Like it or not, SUF's fortunes are tied to DeBeers. Hopefully less as the platinum project proceeds. The rubber band that connects the two is a bit stretched; I believe it will pull the stock back rather than breaking. Consider the following:
For De Beers, the Millennium Is a
Diamond's Best Friend
It's planning a huge push for the gems, especially De
Beers-branded ones, as Y2K gifts
You might not automatically associate the new
millennium with gift-giving -- especially gifts of
expensive diamond jewelry. But once De Beers
Consolidated Mines (DBRSY) kicks off its new
marketing campaign this September, you will. The
diamond sales and marketing giant sees the
thousand-year celebration as a natural tie-in to its
ubiquitous "A Diamond Is Forever" ads. In June, De
Beers held a major fashion show with the haute
couteur house Versace to display some millennium
jewelry designs. And it is creating 20,000 "limited
edition" stones that will carry De Beers branding and a
millennium logo. "We see this as a unique gift-giving
opportunity," says Andrew Lamont, a De Beers
spokesman.
**Even without the full-scale millennium push, diamond
sales are surging thanks to a strong U.S. economy and
improving economic conditions in Europe and Asia. De
Beers, which supplies an estimated 75% of the
worldwide diamond market through its London-based
Central Selling Organization, is the prime beneficiary.
On June 22, De Beers reported that diamond sales
surged 44% in the first half of 1999 to $2.45 billion, up
from $1.7 billion in the first half of 1998.**
The article goes on. For those who want the rest:
businessweek.com
PHIL |
