Kaiser is pleased with Kennecott farmout deal
Montello Resources Ltd MEO
Shares issued 35,719,337 1998-07-30 close $0.295
Monday Aug 3 1998
Also Redwood Resources Inc (RDW)
John Kaiser, writing in a July 28 Bottom-Fishing Tracker, criticizes a July 27 press release from Alberta diamond players Montello Resources and Redwood Resources as indequate disclosure. The companies announced a farmout deal for the 1.5-million acre Legend block to Kennecott. Mr. Kaiser has a love-hate relationship with Montello in particular, recommending it in May 1997 at under $1, again in December 1997 at 60 cents. Then in April 1998, Mr. Kasier recommended selling Montello, which was followed by a conditional July buy tip at 34 cents; investors needed to be "truly contrarian", he said. MEO closed on July 28 at 29 cents. Mr. Kaiser likes the Kennecott deal because it means the giant will need to spent lots of money to determine the property's potential. Mr. Kaiser does not like what he considers a lack of disclosure, however. "Accordingly I take the stance that we cannot assume the July 27 news release is a case of what you see is what you get," he states, adding at this stage it is no more than a letter of intent.
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