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Gold/Mining/Energy : SOUTHERNERA (t.SUF) -- Ignore unavailable to you. Want to Upgrade?

To: russet who wrote (4750)	10/20/1999 5:35:00 PM
From: VAUGHN	Read Replies (1) \| Respond to of 7235

Hello Russett I am afraid I have to agree with Teevee. SUF traded over $20 two years ago not on its revenues but on its penchant for finding significant diamond assets. That is why the market fell in love with this play and part of the reason why it is not in love with it now. If you have not got a potential home run to talk about you are yesterday's news. The fact that putting our assets into steeper production (Angola, RSA) is sucking up so much revenue which could otherwise be invested in finding more pipes is in fact, part of the speculative market's frustration. Value investors such as you and possibly Gemseacher find this approach galling but the fact remains, even if SUF pulled out of Angola, the NWT and Brazil and only invested in production at Klipspringer, the stock still would not run over $6 to $9. We need blue sky to excite the market and we will not get it from anywhere but exploration. Even when SUF publicly announces Messina's production increases from 60 to 80k the market still will not get excited, because it is yesterday's news. It will still take five years to realize any profits on the bottom line and today's speculative investors are simply not prepared to waite that long for rewards. If you want to see your money back in the near futur, I suggest that you consider this reality and cheer for multiple economic Yamba and hopefully Brazilian pipes next year. Becasue that is when and only when the market will fall in love with this play again anytime in the near future. Regards