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Gold/Mining/Energy : Canadian Small Cap Stocks -- Ignore unavailable to you. Want to Upgrade?

To: Jay Arkay who wrote (72)	4/17/1998 7:25:00 PM
From: MatthewZ	Respond to of 512

Jay, I like your picks - particularly GSM - but I think you know that from the GSM thread on SI. I have owned GSM for some time and think it has much higher to go. FarWest I owned for almost 1 year but sold when the stock was higher - I still like FWT and I think this company has a great brand, don't waste $$s on fancy reports, and should experience less variability of earnings. As for Leroux - I still think it is cheap and should benefit from a great economy, and ECX - what a disappointment! Later, MatthewZ.

To: Jay Arkay who wrote (72)	4/18/1998 8:13:00 AM
From: Ally	Read Replies (3) \| Respond to of 512

>>No one has yet responded to my earlier suggested five small-cap stocks, which I posted on April 9th (reply #44)<< Hi Jay, Sorry about the lack of response on your initial posting. I've been overwhelmed lately and couldn't find the time to attend to this thread more than I would like to. >> From time to time I shall try to keep tabs on how they have performed relative to the overall market (TSE 300 index)<< This is a great idea and you'll benefit 2 ways (1) retrospective re-tooling of personal stock-picking skills by daring to show portfolio performance to others (2) feedback from others. >> Stock April 8 April 17 %change Global Election Syst (TSE:GSM) 2.05 2.12 +3.4% Far West Industries (TSE:FWT) 1.20 1.20 0% Breakwater Resources (TSE:BWR) 2.35 2.89 23.0% Leroux Steel (MSE:LER.B) 6.50 6.80 +4.6% American Eco (NASDAQ:ECGOF) 8.80 8.188 -7.0% AVERAGE FOR THE FIVE +4.8% TSE 300 INDEX 7571 7765 +2.6%<< I'm not familiar with any of the stocks above, and it would be difficult for me to comment specifically on the specific stocks without having done an analysis. However, I did start on GSM by reading the latest postings on SI, and the initial impression I got from the thread postings prompted me to make the following observations: 1. Management - comments about management - a high level of trust in a company's management is almost mandatory for me to stay with a stock. 2. Stock dilution - The common currency of micro-cap companies is issuing shares to support growth... reasonable dilution to support growth is acceptable, but not to enrich insiders... I don't know what the case is here. 3. Growth - how large is the world wide demand for election systems? I don't know. 4. Profit Target - Micro-caps are risky/speculative investments..... a high profit target should be set. Can this investment at least double capital in 2 years time? It is so easy to lose money, or hold dead money, when investing in micro-caps. This is why I find that a tough and uncompromising approach is very necessary. As per the Framework outlined on this thread... (1) high growth (either through nature of products/services or acquisitions) (2) great management (3) good stock price at entry (4) at least double your capital in a 2 year time frame. Here's food for thought for you Jay. Which of the above holdings do you see meet the Framework criteria? What are your thoughts on the criteria? regards, d