Southwestern Resources Corp (C-SWG) - In the News
Kaiser says Southwestern's Boka fails to convince
Southwestern Resources Corp SWG
Shares issued 15,874,496 Jan 21 2003 close $ 14.78
Tuesday January 21 2003 In the News
John Kaiser, writing in a Jan. 21 Bottom-Fish Tracker, says Southwestern Resources (then $14.10) represents "poor speculative value." Mr. Kaiser recommended the stock in December, 1999, at $4.50; in December, 2002, he said Southwestern was headed to $10-$15. The stock went for a roller-coaster ride last week, soaring to a high of $19.20 on Tuesday, Jan. 14, before tumbling to $12.35-$12.40 on Thursday and Friday when at least one analyst put out a sell recommendation. Mr. Kaiser fudges with a 25-per-cent "partial sell" recommendaiton. The letter writer explores the upside and downside of Boka, saying that if Southwestern's geological interpretation is correct, the imagination can extend the Boka stratigraphy at least three kilometres eastward, which, at three grams per tonne, would represent a gold resource of nearly 300 million ounces. On the downside, he says Boka's geography is like a giant tabular sponge riddled with cracks. Is the gold concentrated only in the cracks, or have the spongy pores surrounding the cracks also soaked up gold? Analyst Paul van Eeden contends Southwestern is overpriced: The market's valuation is way ahead of the fundamentals.
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