Hello John
I don't like Kalahari (V.KLA) as a company or any company who's management looks at shareholders as a source of revenue to be siphoned rather than as a respected partner and attempting to build shareholder value through operations, production and sale(s). Regardless, for a quick speculation @ $0.45 it is also steal. 2,200 shares would run about $1,000 so it won't break the bank. As you know, SUF will be drilling this spring for the kimberlite source(s) of the Yuri diamonds/kimberlite glacial erratic they found last fall. SUF is the reason this play has credibility and the market recognizes that fact. KLA have +/- 20% of the play, about +/-32,000,000 shares, and a good promotion machine. If they hit, you know the stock is good for at least a $4.00 rise before management starts diluting the stock and shorting it under you.
An alternative play on this prospect is Island - Arc Resources (V.IAR) @ $0.25/share. They are not connected with KLA which might be good, but they have 10% of the Back Lake claims and only 8,000,000 shares outstanding. Their leaverage is perhaps better than KLA's and don't suffer from KLA's reputation. They don't have KLA's promotion machine, deep pockets or close to decent trading volume. You might get in and have trouble getting out unless they hit a pipe. In that case of course you will have no problem as everyone will be falling all over them selves to grab a piece of them. On a hit, also a good $4.00/share possibility and $1,000 gets you approximately 4,000 shares. If the pipe ends up as economic, well then you know the potential. Not bad for $0.25.
Regards |
