I was not arguing that IPJ is not sitting on results, just reporting
what I was told. At the Gold Show Thursday I talked to Bema's VP of acquisitions (forgot the name) who said he worked in Indonesia. He said that without contracts of work, a foreign company in Kalimantan cannot engage in any exploration that is destructive of the ground surface, such as drilling. This might explain why Pursuit is not admitting drilling results. You follow the stock more closely than I do. Has Pursuit ever said that it has drilled on Kalimantan? (The Bema VP also said that the problem in Indonesia is not the government,
but the geography.) John Doody of Gold Stock Analyst said that the 7th generation COWs will not be issued before 1998, if at all, and on less favorable terms than previous COWs. He also said that Indonesia is the most prospective area in the world for gold. Rick Rule, a natural resources broker in California, said Pursuit would be a good buy at $1.80. Unfortunate it appears that the market might agree with
him.
On the other hand, Steve Dattels said he has gotten joint venture offers for Mahakam from 2 majors and for Jurassic Park from 3 majors.
He also said Pursuit will begin drilling in July on several properties in Mongolia. He also indicated the company is undervalued based on the copper in the Phillipines. He also said Pursuit is purely an
exploration company, and will sell all its properties without mining
them.
Nobody is a happy camper when their stock goes down day after day.
Ben Johnson, a broker, said that with junior natural resource stocks
you should keep a trailing stop 20% below the price of the stock. This certainly would have been a good idea with this stock. My tendency is to stick with a stock as long as I think it's undervalued,
no matter how high or low it goes. This has hurt me many times, but a
few times has paid off big. My feeling is that this stock is undervalued, and I intend to stick with it, even though it is very
weak price-wise and most professionals would probably advise dumping it on that basis. Here's hoping for good drill results in Mongolia.
Bear |
