New Claymore Resources Ltd NCS
Shares issued 4,165,775 Feb 22 close $0.60
Wed 23 Feb 2000 In the News
John Kaiser, writing in the Feb. 7 Bottom-Fish Action for the period Jan.
24 to Feb. 4, takes New Claymore Resources management to task over its Jan.
13 private placement of 400,000 units at 12 cents -- "an act that raises
serious concerns about the credibility of management." New Claymore was one
of Mr. Kaiser's favourite Alberta diamond stocks, having recommended it
four times between November, 1994, and July, 1998, at prices ranging from
40 cents to $2.80. In the current report, Mr. Kaiser complains that when
New Claymore's Tony Rich decided to do the 12-cent private placement, his
company had a net realizable asset value of 29 cents a share, and that does
not include the junior's remaining Alberta diamond play holdings. Another
concern is the company's lack of disclosure over its $374,927 in marketable
securities (book value). The letter writer complains that neither the
annual report nor quarterly financials indicate what these securities
comprise. "Management might counter that New Claymore stock was languishing
at $0.15, but that has more to do with management incompetence and poor
disclosure policies than market circumstances," he says. |
