A Rec...by Kaiser-Birch Mountain continues to lead Kaiser's 1999 portfolio
Birch Mountain Resources Ltd
BMD
Shares issued 27,677,790 Sep 10 close
$1.25
Fri 10 Sept 99 Street
Wire
BIRCH MOUNTAIN 'FEELS' GOOD THINGS WILL HAPPEN WITH PRAIRIE GOLD
by Stockwatch Business Reporter
As of today, Doug Rowe's Prairie gold mineral play again leads
John
Kaiser's recommendations for 1999. The stock also led in April and June.
Mr. Kaiser tipped Birch Mountain a medium-priority buy at 30 cents on
Dec.
11, 1998. The stock closed on Friday at $1.25, up 19 cents from
Thursday's
close of $1.06 on 8,000 shares. A late buy, with three minutes to go,
of
3,000 shares by Goepel McDermid Inc., boosted its closing price
by a
nickel. Wolverton Securities Ltd. was the seller. The last news from
Birch
Mountain was in July.
While up considerably from 30 cents on Dec. 11, 1998, the date of his
1999
Bottom-Fishing Guide, Birch Mountain is well down from its peak this
year
of $1.66 reached on April 5.
Birch Mountain's performance was not enough to pull Mr. Kaiser's
1999
portfolio into positive territory. His portfolio ended on Friday down 2
per
cent. That compares with a 14.5-per-cent gain in June; in May,
his
portfolio was up 23.7 per cent.
When he recommended Birch Mountain, the bottom-fishing stock expert
was
less than glowing in assessment of the company, calling the Prairie
gold
model "controversial." (Prairie gold is Birch Mountain's somewhat
lonely
search for precious metals in sedimentary formations where such metals
are
not thought common.) Also in his December report, Mr. Kaiser pointed
out
that the company's finances were low ($800,000 in working capital), and
he
reminded readers of uber-promoter Robert Friedland's
short-lived
involvement with the company in 1996, when he assisted with an
Indonesian
property. Still, he said, the diamond potential of Birch Mountain's
claims
under option to Lytton Minerals Ltd. could help boost finances.
(Lytton
amalgamated with New Indigo Resources Inc. to form Tahera Corp. in
March,
1999.) Few noteworthy developments on this front took place, however.
The search for Prairie gold continues without any major,
groundbreaking
results. On July 16, 1999, the company comprehensively reviewed
and
analyzed the data collected on the model. In Mr. Rowe's view, the
analysis
of drill core and surface samples "conclusively prove the existence
of
anomalous quantities of gold, silver, platinum, palladium, and
other
precious and base metals and rocks from its Athabasca properties"
in
northeast Alberta.
Mr. Rowe cautioned, however, that testing of quantitative assay
methods
developed by the company and other parties "has not yet achieved
the
objective of developing << Ie the GOAL...I just added this IE and the word GOAL>> a method for repeatable, statistically
sound
estimates of precious metal concentrations." What may have the
market's
attention is Mr. Rowe's statement that the company "feels" that
the
variability in results "is related to control of certain process
parameters
that are now systematically being tested." He adds, "Birch Mountain
feels
that gold, platinum and other precious metals are present in its
Athabasca
rocks."
Mr. Kaiser has not communicated any new thoughts to his subscribers
on
Birch Mountain and its progress with its Prairie gold theory. Still,
the
market continues to feel good about Birch Mountain's progress.
Mr. Kaiser's second best performer is Corner Bay Minerals Inc. Corner
Bay
closed Friday at $1.50, up from the Dec. 11 recommendation price of
45
cents. The stock began to make gains in July, ahead of promising
results
from the Alamo Dorado silver project in Mexico released on Aug. 12.
Mr.
Kaiser commented on the results on Aug. 13 (at 94 cents), saying
with
enthusiasm that they could indicate a 50-million-ounce silver deposit
with
a rock value of between $10 and $12 a tonne.
Mr. Kaiser's third best performer was the Mike
Farrugia
minerals-to-Internet play Oro Nevada, which on Sept. 7 announced its
change
of name to Marlet Venture Management Ltd. Oro Nevada closed on Friday
at
$1.01, up from its Dec. 11 recommendation price of 36 cents. At the
time,
Mr. Kaiser liked Oro Nevada as a good shell with liquidity. Marlet,
an
existing company, was described by Oro Nevada as an "international
catalyst
organization" that provides high-tech clients with capital and
management
advice in preparation for initial public offerings or mergers.
In March, Mr. Kaiser noted that the stock woke up on Feb. 18 and by
March
29 had soared to $1.30. The letter writer suggested, correctly, that
the
activity could be tied in with a possible new direction planned
by
management. He also commented on its affairs in May, following
an
announcement regarding an Internet focus. At that time, Mr. Kaiser,
hinting
at an upcoming speculation cycle for the stock, recommended bottom
fishers
no be in a hurry to take profits.
The negative side of Mr. Kaiser's portfolio was led by Alberta
diamond
diehard New Claymore Resources Ltd. (at 12 cents from 55 cents since
Dec.
11), followed by Alamos Minerals Ltd. (at 15 cents from 52 cents since
Dec.
11), and Consolidated Westview Resources Corp. (at nine cents from 27
cents
since Dec. 11).
Of the 100 picks in his portfolio, losers outpaced winners by 65 to
34,
with one at break-even.
canada-stockwatch.com
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