Hi, all...you probably know all this already but I'll post it anyway...
Sanfred Resources Ltd -
New management a winner for Buffalo Hills Player
Sanfred Resources Ltd
SND
Shares issued 5591288
1998-01-13 close $0.32
Tuesday Jan 13 1998
by Stockwatch Business Reporter
Sanfred Resources is one of 1998's first beneficiaries of the increasing popularity of the Alberta
diamonds area play at Buffalo Hills -- a play that has been followed with much attention to detail by
newsletter writer John Kaiser, and has recently been adopted by the Florida-based Bull & Bear Financial
Report under the headline "A Shot at Billions." The play was sparked a year ago when area leaders
Ashton Mining, Pure Gold and Alberta Energy released early findings following an aerial survey.
Sanfred, which was up 64 percent in the five weeks between December 1 and January 9 (to $0.34 from
$0.21), confirms there is still money to be made in VSE pennies.
The Sanfred tip was on Mr Kaiser's annual list of 100 bottom-fish carried in the September-December
1997 issue of the Kaiser Bottom-Fishing Report, dated December 1. At the time, Mr Kaiser said the
stock would benefit from a change in management in the form of new president Don Farrell, himself
almost a VSE institution. In April 1997, Sanfred staked 300,000 acres on Buffalo Head, southeast of
Ashton's main block. Cambridge Minerals, which trades on the ASE, subsequently took a 50 percent
option on the property.
A spokesman for Sanfred Resources agrees the market is responding to changes in management and the
generally increasing interest in companies chasing kimberlite at Buffalo Hills. Andrew Cook says the
market likes Sanfred's new board, which is dominated by allies of incoming president Farrell. "What
you're seeing now is investors having confidence in Farrell Financial, and they see that the new board is
on full time and that we'll get something done," Mr Cook contends.
Mr Kaiser seems to have been ahead of the market regarding the benefits of Sanfred's new leader, and
of owning shares in the 30-odd companies pursuing diamonds in northern Alberta.
Indeed, in the absence of much happening with gold and the distaste investors are displaying for
exploration plays in the Third World, Buffalo Hills appears to be gaining favour with the market almost
by default.
While Sanfred is the best performer of Mr Kaiser's 1998 Buffalo Hills stocks, it is by no means the only
good performer. Of Mr Kaiser's 100 picks for the year, 11 are tied to the northern Alberta area play. Of
these, only one -- Troymin Resources -- was on the negative side of the ledger, down less than two
percent to $0.76 on January 9 from a close of $0.77 on December 1.
In decending order of performance, the Mr Kaiser's Buffalo Hills picks are as follows: Sanfred (SND),
to $0.34 from $0.21 for a gain of 64 percent; Cambridge (CMB), to $0.27 from $0.16 for a gain of 63
percent; Meteor Minerals (MMI), to $0.46 from $0.30 for a gain of 53 percent; Mount Hope (MH), to
$0.90 from $0.62 for a gain of 45.5 percent; Blackrun Ventures (BKV), to $0.50 from $0.35, up 42
percent; Everest Mines & Minerals (EVR), to $0.38 from $0.29 up 31 percent; Montello Resources
(MEO), to $0.79 from $0.62 for a rise of 27 percent; Lucero Resources (LCR), to $0.52 from $0.65 for
a gain of 26.1 percent; Pure Gold (PUG), to $1.23 from $1.11, up 10 percent; Ecstall Mining (EAM),
to $0.39 from $0.36 for a gain of eight percent, and Troymin (TYR), to $0.76 from $0.77 for a loss of
just over one percent.
Mr Kasier made this and his other 99 picks near the end of a months-long slide in the junior resource
market, which was sparked by the Bre-X fraud (which put investors off far-off plays) and the plunge in
gold prices (which put investors off gold plays anywhere).
Accordingly, for Mr Kaiser, a comparison of 1998 with 1997 is a case of Buffalo Hills vs. buffalo
chips. His 1998 portfolio gained 6.91 percent between December 1 and the close of trading on January
9, whereas his 1997 pick list -- after buys, sells and holds -- had fallen by about half to January 9.
(c) Copyright 1997 Canjex Publishing Ltd. canada-stockwatch.com |
