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

To: james flannigan who wrote (2483)	2/10/2005 1:25:08 PM
From: VAUGHN	Read Replies (1) \| Respond to of 16213

Hello James Your scenario is dependent on the threat of a White Knight and is a gamble for an ARB rather than an investment. Why would an ARB make a gamble on the chance of another offer providing a narrow profit margin, rather than making an investment now or months ago all but guaranteeing a minimum 300% profit margin on what is essentially "a sure thing" no risk basis? It doesn't make sense to me. I can see all the little speculators trying to beat each other and blowing smoke up each others butts, but I just don't understand such a tactic from what is or should be a relatively conservatively run investment house. Still perplexed in YK. Having said that, it probably should be considered that of all the diamond players out there, the only way Aber can grow in the short term and thus lengthen its currently very finite life span, is to make an acquisition, so while ABZ's pockets aren't as deep as DB's I wouldn't count ABZ out as a possible White Knight, albeit, not likely to be able to significantly outbid DB's. BHP and Kennecott have numerous other irons in the fire and thus eventually, the ability to find diamonds elsewhere and make money elsewhere both in diamonds and other commodities. I don't believe Aber is in the same position, so ABZ making an acquisition near their existing and only mine makes more sense given that companies reality. Just a thought. Vaughn