Not much interest in this stock. Pity!
Stockhouse
St. Genevieve [SGV.T]
Our 'source' who correctly picked the timing on Kazakstan and
Central Asia is now
saying that the time is right on St. Genevieve, and based on
his previous two
picks, we are allowing him to state his comments on St.
Genevieve here today.
Our only comment is that we have not researched St. Genevieve
at all and would
advise caution to many investors over the next two weeks to
commit a large
amount of funds to any stock. That said, here is the latest:
Earlier this year I mentioned to you that St. Genevieve (SGV),
trading on Montreal
and Toronto exchange, is worth watching. Well, at this time I
like to say that this
stock is a strong buy, not just because the price dropped to
where the shares are
undervalued, but rather that there is a lot of action taking
place behind the scene.
All the ingredients are now in place which should move SGV to
double, if not more,
and it will happen quick so don't snooze or you'll lose!!
Let's review the hidden ingredients kept behind several doors
which I expect will
move SGV:
So what's behind door # 1?:
Behind this door we have KWG Resources (KWG). The major
shareholder of KWG
is SGV which holds 25%. Historically SGV has been trading in
correlation to
KWG. Last year KWG spiked from $7.00 to over $20.00 because of
news on its
Cuban property. In correlation, SGV moved from $0.80 to$2.40.
So, what's the big deal now? Welcome to Dominican Republic
(DR).!! KWG has a
JV there with Falconbridge. Before the Bre-X fiasco I would
have said that DR
could be the "Instant Replay" KWG had with the Cuban play. In
today's market I
see KWG move to $10+ and SGV $1.40. So why is this all of a
sudden significant
and no one heard much about it? Well, Falconbridge has been
sampling the
property for sometimes already but has not issued news releases
because it was
negotiating surface rights to adjacent property. So, would you
tell the world what
you may have before you secure the property? By the end of
today it should be
official that they secured the surface rights to access the DR
property.
What's behind door # 2?
We have seen recently a lot of coverage on Spider Resources
(SPQ) $0.45, from
C.M. Oliver, Investor's Digest and others. Also, big time
buying from several mutual
funds. Depends who you talk to, the target price for SPQ is
between $1.00 to
$2.00. KWG owns 14% of SPQ. So, what's good for KWG is good for
SGV!
What's behind door # 3?
Well, we can't forget about our friend from Kazakstan
Goldfields (KGFC), Mr.
James Blanchard the III, publisher of the Gold Newsletter. His
recommendation
moved KGFC from $0.80 to $1.40. The next issue of the
newsletter will provide
separate coverage for KWG and SPQ. Blanchard is very bullish on
both stocks
and when he says buy, a lot of his subscriber follow his
recommendations. As
some of you may already know, this newsletter is sent out to
250,000 US
subscribers. There are two other major newsletters that will be
covering KWG and
SPQ. I don't have their names yet so keep following the Insider
Report for a follow
up. As I always say, "...I'll be Back!!!"
What's behind door # 4? The icing on the cake! Genoil (GNOL)
$2.00, is 38%
owned by SGV. Genoil has been a sleeper, but in a couple of
weeks the drill will
hit the target depth in one of the Quebec location, and if they
hit oil, BOOM!!!,
Genoil moves to $15.00 a share and SGV to $4.00. Now, the big
question is will
they hit oil. I don't want to get into politics but, one of the
biggest problem the
separatist had in last referendum was dependency on Western
Canada oil supply.
If Genoil hits it, a lot of separatist will rush to buy the
stock in support of Quebec
independence. Just a theory!!
What's behind door $ 5?
Insurance Policy # $2.00!! In October 1, 1996 SGV issued
Purchase Warrants
exercisable at $2.00 on or before April 1, 1998. With $16
million dollars of new
financing on the line, I would think this insurance policy will
ensure that the
company will do what it takes for SGV to trade above $2.00. As
with most
insurance policies, you buy it and never need to use it. The
same applies here.
SGV will move much higher because of what it has in the
pipeline rather than
empty hype.
Well, get the popcorn out, relax and enjoy the show!! I will
drop by the Insider
Report during intermission to report on progress.
The Source... I'll be back!!! |
