Speak o' the devil
Kaiser says "oversold" stock worth buying
Winspear Resources Ltd WSP
Shares issued 32,726,333 Jun 12 close $0.52
Mon 15 Jun 98 In the News
John Kaiser, writing in his June 8 Bottom-Fish Report, says Winspear
Resources "remains a good bottom-fish buy," adding that a rebound from the
current oversold position is a "strong possiblity." Mr. Kaiser recommended
WSP in February 1997 at $3.61 as a double, and again in December 1997 at 84
cents. Winspear has been in a steady downtrend since early February, when
joint-venture partner Aber Resources pulled out of the $2.7-million Snap
Lake exploration program, he notes. Now, it is 46 cents. No reasons
suggesting a negative outlook for the project were offered by Aber, Mr.
Kaiser stresses. On May 1, Winspear conceded Snap Lake had not yielded joy
in its latest phase of drilling. Still, Mr Kaiser finds the Winspear story
compelling. After chatting with WSP president John McDonald, the U.S.-based
letter writer emerges with a new appreciation of the area's kimberlite
geology. Still, if worse comes to worse, Winspear will still have
$5-million working capital at the end of the program and is in a strong
position to carry on further exploration later this summer. Mr. Kaiser also
notes as positive WSP's option with Tyler Resources on a property that
adjoins Dia Met's Ekati block.
(c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com
|
