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Gold/Mining/Energy : Canadian-under $3.00 Stock-Picking Challenge -- Ignore unavailable to you. Want to Upgrade?

To: John Fairchild who wrote (1155)	3/17/2001 3:16:08 PM
From: Al Collard	Respond to of 11802

Hi John, Your in with CDZ.wt-t @$.14 for 71,428 shares. There are no charts available for the warrants of Command Drilling Corporation. So in the absence of charts, went and did a little DD on why the warrants were down in price when the share price of CDZ was up. Here is what I came up with: (Fully diluted number includes 9,557,250 warrants exercisable at $2.50 until June 29, 2001) I think you may be on to something here John as there doesn't seem to be much premium in the wt. price when one considers the stock is only trading $.20 below the exercise price. One would suspect the management would dearly love to have these wts. exercised as it would add $23 million to their bank account. I guess the downside would be owning the stock itself as a near 50% dilution in shares outstanding is considerable. Will be interesting to see how the company plans to deal with this issue come exercise time. I for one would be checking the short sales nearer the exercise date to see how the houses are positioning themselves for this dilemma. The insiders don't appear to be selling a very positive sign. Good luck with your pick this week, Al