Kim,
This may shed some light. Investors woke up on Wednesday to find a nice little artcile in Forbes, beating up Indochina Goldfields and Robert Friedland. The market has reacted quite dramatically to Green's article. It looked for quite a while that this stock was simply going to continue on it's original breakout and never look back.
Forbes says boosters may help mine the suckers
Indochina Goldfields Ltd ING
Shares issued 62,944,618 Jan 30 close $16.75
Fri 31 Jan 97 In the News
Forbes magazine, in an article on Robert Friedland entitled "Mining for
Suckers" in its February 10 issue, says the promoter's most widely followed
Asian venture is Indochina Goldfields. Writer William Green says the
company's current market value is US$880 million, a colossal sum to be
riding on an outfit that lost US$20 million in 1995 and has no revenues
from mining yet. Forbes asks if Indochina is just an overpriced promotion,
with Mr Friedland trying to capitalize on the fame of his Voisey's Bay
coup. There are certainly plenty of skeptics. Victor Flores, manager of the
United Services World Gold Fund, describes the $15 IPO price as
"outrageous." Another mining analyst, who has visited the company's
properties, values Indochina at $8 to $9 per share. It recently traded at
$18. Mr Friedland has plenty of boosters, who have a vested interest in
hyping the stock by buying cheap shares themselves. Brokers Rob Hartvikson, Eric Savics and Michael Vitton, along with newsletter writers Jim Blanchard, Bob Bishop and Adrian Day, all bought large amounts of stock at$1 to $2 per share.
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