Trev and remaining cultists: I pulled this interesting analysis off of stockwatch. stockwatch.com Thought we could use something to spur some discussion on SI. (Thanks for this WillP) Also, I wonder how may Resource Indicator followers sold at the stop loss? Could turn out to be an astute move... time will tell. Well 1 post this week for me... off to Lake Huron this time! Hope to see the "shakedown" over and WSP at 4+ buckaroos when I get back!
WillP answers: Why would a self respecing
multinational "diamond" company
want to take over Winspear. What
does Winspear have, that other,
cheaper, outfits do not?
WINSPEAR RESOURCES
In ground resource: 20 million tonnes
x 200$ US per tonne x 0.7 =
$2.8-billion US / 50-million shares =
$56 US per share.
Excess over share price: 24x.
Any with more?
MOUNTAIN PROVINCE
MINING
In ground resource: 35 million tonnes
x $115 US per tonne x 0.36 =
$1.4-billion / 45-million shares = $32
US per share.
Excess over share price: 12x.
ABER RESOURCES LTD.
In ground resource 37 million tonnes
x $200 US per tonne x 0.4 =
$3.0-billion
Add approximate share of Snap
Lake, of $1-billion = $4.0 billion /
56-million shares = $71 US per
share.
Excess over share price: 8x.
DIAMET MINERALS LTD.
In ground resource 70 million tonnes
x $110 US per tonne x 0.29 =
$2.2-billion / 33-million shares = $66
US per share.
Excess over share price: 4x.
It's a crude way of looking at things,
but then it's a "rough" business. If
someone wants diamonds...the
higher the excess multiple, the better
deal for your money, no?
TAHERA CORP.
In ground resource: 5-million
tonnes (est hi grade) x $80 US
(est. hi grade) x 1.00 =
$400-million US / 200-million
shares = $2.00 US per share.
Excess over share price: 13x.
It's a decent value, but few
diamonds. Also depends on
my estimates of high grade
zones, which are possibly
optimistic.
SOUTHERNERA
RESOURCES LTD
Estimated resources: 8 million
tonnes x $100 US per tonne x
0.9 = $720-million US /
30-million shares = $24 US
per share.
Excess over share price: 9x.
That one includes Leopard,
M1, and the other, less
explored Klipspringer bodies.
Nothing else, as there are no
indications of potential.
Will
Author: WillP -- Date:1999-07-22 12:58:12
Subject: Stop Losses
" Anyone following his Sudhirness will now be
stopped out of WSP. "
Always a risky move...putting stop losses on
something that isn't a "speculative" stock. I think it
will take some time to have that realization sink in.
...or is there a second opinion that's more
persuasive?
Not from me. I'm not a big fan of the "DeBeers is
going to buy", scenario. |
