Hi Graham,
I'm not sure if you got to see the Kaiser Bottom Fishing Report on BLO that came out a couple of weeks ago. Kaiser now rates BLO a Bottom-Fish Buy. Here's what he says, in part...
"Blue Ribbon was a flop as a bottom-fish in 1996. The company is concentrated in Suriname, the former Dutch colony which straddles the Guiana Shield and is wedged between Guyana and French Guiana. BLO moved into Suriname in 1993, but was caught by the 1994 market downturn and forced into a massive financing binge at cheap prices in 1995. This paper came free trading in mid-96, but found no liquidity due to the lack of signifigant exploration progress. In late 1995 a blowup between the financiers and BLO's founder resulted in a management shuffle and the arrival of Jack DiMarchi who redesigned the exploration strategy.
An exploration office was established in Suriname and systematic sampling programs were initiated for BLO's 70,000 ha. Exploration in jungle-covered terrain lacking outcrop is tough, especially on promoters who rarely get the type of information flow investors need to stay interested. At the end of 1996 BLO's working capital was down to $100,000, with the Dijon and Toeboeka concessions targetted for shallow auger drilling.
Of the three former colonies, Suriname has received the least attention, though that has not prevented al of the greenstone geology from being tied up, largely by private locals. Suriname has suffered from the lack of a flagship deposit, but work by Cambior and Golden Star on the Gross Rosebel deposit has upgraded the reserve to 1.5 million ounces gold (0.04 opt), and rumour suggests the reserve has been doubled to 3 million ounces. Golden Star, Canarc and BLO were the earlybirds in Suriname, but interest from the majors is building.
BLO has been negotiating with local concession holders and is close to locking up strategic land positions that could boost its holdings to 200,000 ha. Should this happen BLO will become very desirable to institutions seeking cheap exposure to Suriname. Two drill ready projects and a portfolio of others available for farmout to majors should attract investors. About 5.1 million private placement warrants now in their 2nd year are exercisable at $0.40-0.50 until June-Aug 1997. This situation lends itself well to positioning newcomers with blocks of stock. Full dilution to 17.6 million shares would raise $2.5 million for BLO. Cheaper prices and improved timeliness make BLO a much better buy."
I think we all realize nothing big is going to happen with BLO in the short term. Buy my philosphy is to accumlate as many shares as possible under $0.35.
Take Care,
Chris A. |
