Kasier says hope for $2.50, but be patient
Champion Resources Inc CHL
Shares issued 13,950,440 Jul 14 close $0.21
Wed 15 Jul 98 In the News
John Kaiser, writing in the July 8 issue of his Bottom-Fishing Report, says
political turmoil in Guinea-Bissau has cast a cloud over Champion
Resources' Farim phosphate project. Mr. Kaiser notes that Champion hopes to
do a deal on Farim, preferably with a major chemicals producer. Phosphate
is used in fertilizer production. Guinea-Bissau has a history of civil
conflict and political instability, and Mr. Kaiser hints this may have
something to do with Champion's long slide in price. CHL also has only
$300,000 in working capital. As gloomy as things may be, Mr. Kaiser says
the stock, 22 cents at the time of writing, could go to between $2 and
$2.50 if all goes well. By that, Mr. Kaiser means if the Farim deposit is
proved substantial and fetches a strong price from a chemicals company. The
letter writer says in the current bear market, resource juniors may look
like they are down and out, but can quickly spring back to life. Still,
bottom-fish accumulation "should not be done with any short-term
expectations."
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