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Gold/Mining/Energy : Canadian Diamond Play Cafi -- Ignore unavailable to you. Want to Upgrade?

To: james flannigan who wrote (2476)	2/10/2005 12:05:35 PM
From: Famularo	Read Replies (2) \| Respond to of 16213

Mountain showing some life today.. IMO, a great buy at current levels and hold till summer.. Not a trader stock, but worth more then current price of 1.80.. traded to 1.90... Under 2 bucks, not too much risk......frank

To: james flannigan who wrote (2476)	2/10/2005 12:41:11 PM
From: VAUGHN	Read Replies (2) \| Respond to of 16213

Hello James While DeBeers' RSA PR department probably wouldn't have made such a statement without approval from upstairs, I would caution about drawing conclusions. Unless, the CEO or President of DeBeers made such a statement, I would hesitate to characterize the buy-out as "in the bag." Regardless, in my mind, the issue is how quickly or soon will it be before DB's makes an offer and/or how long are they prepared to wait to conclude any deal? Why? If such a buy-out was immanent, why would ARB's wait for a "buy-out" announcement to buy MPV? They would be giving away the vast majority of any appreciation/profit! This is an area of the investment game that I must admit I have little expertise in, but at the end of the day, unless a white knight was anticipated by an ARB, I'm at a loss as to why any would buy a major position in MPV …AFTER a DB's buy-out offer NR? Once the DB's buy-out announcement is made, unless a shareholder was a complete idiot, why would any sell at all until the MPV share price at least equalled the suggested DB's offer price, and once the MPV shares equal the suggested offer price, why would ARB's bother to buy major or even minor MPV positions as there would be no profit left on the table? Wouldn’t any major player wanting a large position and therefore anticipating an eventual profit have been and must have been buying for the past 12 months? Any major volume offer by an ARB now would drive the price at least to $5 if not $8/s and we certainly haven't seen any such pressure on the buy side or price. Looking at current reported institutional holdings of MPV, I would have to call it very limited, certainly in comparison to the number of institutions and shares held by institutions in MTX! So unless there is another way to make money on buy-out deals, I’m at a loss… Perplexed in YK Vaughn