Winspear Resources Ltd -
Kaiser warns of 'dangerous speculative bubble'
Winspear Resources Ltd
WSP
Shares issued 33,721,333
1999-01-08 close $4.1
Monday Jan 11 1999
John Kaiser, writing in a two-part Bottom-Fish Tracker on Jan. 8, 1998, has
suddenly and dramatically cooled to Winspear Resources, accusing management
of not disclosing the whole truth about the Snap Lake mini-bulk sample of June
22, 1998 -- results he once described as indicating possibly the "richest diamond
resource so far encountered in the Northwest Territories." He recommends
investors liquidate at least 25 per cent of their holdings. Winspear soared from
around 50 cents in June to Friday's close of $4.10. Mr. Kaiser says rumours from
Antwerp, where the diamonds were valued, indicate the largest three diamonds in
the sample resembled Russian stones and represented at least 75 per cent of the
package's value. He adds that that unless better disclosure is made, Winspear
could rise to the $10-$15 range by summer only to face a "catastrophic crash akin
to the Tli Kwi Cho bust of August 1994." Mr. Kaiser hints at salting but discounts
it, saying it is probably sheer luck that the three largest diamonds ar vastly superior
to the others. Only a day earlier, on Thursday, Jan. 7, Mr. Kaiser was upbeat
about Winspear; the Globe and Mail reported him as saying the stock could reach
$20 by summer.
(c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com
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