Kaiser gets happy with Corner Bay numbers
Corner Bay Minerals Inc BAY
Shares issued 10,941,109
1999-11-24 close $2.7
Thursday Nov 25 1999
John Kaiser, writing in a Bottom-Fish Action for the week of Nov. 15-19, says
that according to his calculations, Corner Bay Minerals, then $2.63, is
considerably undervalued based on the latest numbers from Alamo Dorado. Mr.
Kaiser recommended the stock in December, 1998, at 45 cents. Earlier buy tips
were December, 1994 (56 cents), December, 1995 (70 cents), and December,
1996 (63 cents); he wrote about its affairs on at least 13 other occasions. Mr.
Kaiser crunched the numbers and calculated that the 100-per-cent-owned Alamo
Dorado project has a net present value of $3.45 a share. He says the project is
very sensitive to the price of silver, the recovery rates, and to some degree the
capital cost. At $10 silver, the NPV soars to $16.52 per share, implying a
leverage factor of three to the price of silver; however, Corner Bay does not have
much room for a decrease in the silver recovery unless the price of silver goes up.
Mr. Kaiser adds the company's structure lends itself well to a buyout by a more
senior producer.
(c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com
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