Hello Mr. Joy:
The list that you referenced is not my personal picks., it was a culmination of several contributors to this forum.
My list of Diamond stocks are few.
Diamet
Aber
Southernera
DeBeers
Rex
Speculatives
Mountain Province
Winspear
Gerle
Major General
The best performing of the group this year from Dec 98 to present
has been Winspear and Rex. In most cases., the near term producers
have been punished by the market., with the exception of Diamet
as well as the producers.
The strength of the market and an area which DeBeers will protect
at all costs is the large stone arena., of which Winspear., and Rex.,
Southernera., seem to be involved. The downside has been less
than with the near term producers.
Each company has its own quirks and intrinsic merits., only you as an
individual investor can gauge those standards.
I would classify
Aber as a worldclass ore body., and a safe long term investment.
Southernera is a well balanced company with good assets
Mountain Province., average diamond values., with little downside
at this point., but a well priced speculation
Winspear: A good speculation with some of the highest diamond
values found worldwide., which by the way., I can confidently say
was predicted by myself on several occasions on the Winspear thread.
Major General Resources: A sound sincere company looking for a
deposit., which was able to raise funds in a diminishing resource sector last year. The significance of the last release should not be
lost in the fact that only micros were found., and the exploration program is really in its infancy., many days ahead as you well know,.
The proximetry to DeBeers finds speaks well for the days ahead.
Ascot: Well., dont know much about them., as I recall., they almost
walked away from the property a few years back., so perspectives
can change easily in this arena.
Rex: Well they too are exploring in a virgin Diamond country., along
with Ashton in Mauritania. They need to link the diamonds to a source., which may very well happen yet this year if Serge Mullers
last purchases are any indication.
My advice is to be patient and and hope market sentiment improves.
I dont forsee this correction., as a long term phenomena.,, as most
diamond producers can see the shortage of quality rough into the year 2000. So 1999., may be a very good year.
Sincerely
George J. Tromp |
