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

To: gemsearcher who wrote (5099)	11/29/1999 12:59:00 PM
From: PHILLIP FLOTOW	Respond to of 7235

From Friday, Analyst Steven Butler at Nesbitt Burns maintained SUF at "neutral". PHIL

To: gemsearcher who wrote (5099)	12/1/1999 3:23:00 PM
From: crudestope	Read Replies (1) \| Respond to of 7235

Dear Gemsearcher, Thank you for your contribution and I apologise for the delay in replying. I am well aware of investors' frustration especially those who bought the shares at a much higher than the prevailing price. I am just as aware that SUF shareholders are not the only ones suffering (on request I can give you a very long list of companies with good properties and, by historical standards, almost unbelievable low share prices. Just for one, have a look at Eldorado Gold and its chart). In my view the apathetic attitude amongst Canadian investors towards the resources sector is the major contributor to the present depressed market. A trend which any experienced investor would have noticed a long time ago. Again in my view the present market offers excellent opportunities to either average, as in SouthernEra's case if bought at a higher price, or take new positions. Rex Diamonds, which you mention, has a very tightly held share structure. A few weeks ago there were some very large trades at a much lower price. Since then the numerous trades have been small and the price increase disproportionate to the number of shares traded, typical of a small float. As an aside, I understand that a few funds managed by George Soros have been and are taking positions in diamond exploration stocks worldwide. I know that these funds now control two Australian explorers, Striker Resources and Diamond Rose, and hold a major interest in a third, Dioro Exploration. I believe they also recently took part in an oversubscribed financing of a fourth Australian company, Kimberley Diamonds, of which Dr Jennings is a director. However good the management of a company may be there must be a receptive share market and if there isn't one they are simply whistling in the wind. To illustrate this I'd like to mention KeyWest Energy (KWE-T, in which we have a financial interest). This company has a management with a track record second to none. Yet, despite very high hydrocarbon prices, the share price has been hanging around the $1.10 range for months now. I am not sniping at or criticising them. I know that sooner or later the price will be $2.00, though it may take a year to get there. A much better return on money than the interest paid by banks but probably not good enough for those expecting instant profits. I do not mean to be disrespectful but would like to point out that diamond (and platinum) exploration is relatively new to Canada and somehow Hilton Ashton seems to have become the god of diamond analysts on your side of the ocean. Presumably because there is no one else. May I ask when you first heard of him, one, two, three years ago? I have known him and of him for a very long time. Funnily enough he is regarded here and in his home country, South Africa, as De Beers' semi-official mouthpiece. I should add that in London analyst Roger Chaplin enjoys a higher rating with fund managers and brokers. I have my opinion what Angola and Camafuca is concerned which I have expressed before. Suffice to add that others also seem to regard Angola as attractive. It is strongly rumoured here that a take over bid for Diamond Works will emerge ere long. Its assets are solely in Angola. Before signing off, I would like to make one observation re this discussion group. I think it is very strange for investors, claiming to hold SUF shares, to post so many negative, destructive messages. What I am concerned they are knocking the share price down and that is a view any newcomer to this site would take. Somehow I don't think that is their intention but it has the same effect. Best wishes, Crudestope.