Never followed their picks but here is the latest.
Subject:
per Spec tives - Jun 12, 1998
Date:
Fri, 12 Jun 1998 15:32:10 -0600
From:
"perspectives" <perspectives@shaw.wave.ca>
To:
(Recipient list suppressed)
per Spec tives
weekly look at speculative stocks
Jun 12, 1998
per Spec tives is a weekly look at the speculative stock markets. The aim
is to examine what stocks are hot and why, and what stocks are worth
watching. The people behind this newsletter are well known and active
players in these markets. This is not a stock advisory and should be
considered for information purposes only. While this product is being
developed, it is offered completely for free with no obligations. Our aim
is to approach the active speculative stocks with the unbiased eye that
comes from our experienced approach to spec stocks.
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We have decided that the Daily Edition is worth continuing, as a lot of you
have taken an interest and the feedback has been very good thus far. So, we
now offer 6 and 12 month subscriptions to our Daily Edition. Each day, we
send out a summary of the day's activity, highlighting the hot stocks of
the day, identifying the stocks we think will lead the way and the stocks
best avoided in the days to come. Plus, we offer our Daily Edition
subscribers the ability to pose questions via email to us on stocks they
are interested in. Issues come out Monday to Thursday, and then of course
the Weekly Edition. From time to time, we send out intra-day alerts on
situations we think have potential.
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*********************************
Another quiet week as resource stocks took a beating yet again. Alas, there
were a couple of diamonds that we picked for our daily edition subscribers:
- Major General (MGJ, VSE) and Ascot Resources (AOT, VSE) - called these
stocks as speculative opportunities on Tuesday at $0.66 for AOT and $0.42
for MGJ. MGJ hit a high of 0.53 and closed the week at $0.44, while AOT hit
a high of $1.03 and closed the week at $0.91.
- Identified the impending weakness in Pyng (PYT on VSE) on Wednesday when
the stock sold off on good news and penetrated the $4 technical support
level. Closed the week at 3.30.
- Pan Global has been a often covered stock for us, it moved up about 20%
this week while everything else seemed to be going down.
**********************************
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Commentary
Pyng Technologies (PYT, VSE) announced this past week that they had closed
a deal to have their F.A.S.T 1 system introduced to one of the largest
ambulance services in North America.
The stock sold off and closed down for the day.
St. Jude Resources (SJD, VSE) is working on what has the potential to be
one of the better gold finds of the past five years. Their news
consistently shows positive developments.
Despite this, the stock trades at not a whole lot more than cash value.
Nortran Pharmaceuticals signs an $80 million plus deal to potentially
license their anti-arrhythmic compounds.
Stock price gets cut in half.
Every day, we at Perspectives receive email about the great things that
individual companies are doing. Every day, we have to tell people that
their particular stock does not look great despite the sound fundamentals.
Sometimes, we feel like jerks. But at least we are honest.
I knew of a guy who was a trader on the Alberta Stock Exchange when they
had a trading floor. He was considered by many to be one of the best floor
traders on the ASE. Always able to make loot, they said. Yet, he had an
obsession with being sheltered from information. He refused to read news
releases, refused to read the newspaper for fear that he might see some
information about a public company, he did not want to have people tell him
about rumours of impending developments, good or bad. He always said, very
simply, "Everything I need to know is in the trading activity ..."
When Bre-X was the phenomenal stock that it once was, any whisper of a good
news in the mining sector sent a particular stock and everyone around them
shooting higher. Now, as we suffer through the post mortem, nothing seems
to keep the market excited for long. And so, we see that market psychology
is essential in determining share value. Do the PYT, SJD and NRT situations
make sense? They do if you understand the big picture.
The trend is your friend, or your worst enemy. Don't fight it. Find
companies that have sound stories and market activity to support the
positives. No matter how good things sound about an individual stock, if
people are more eager to sell than to buy, the stock is headed lower.
In this market, there are no patient investors. If there is not something
around the corner to fuel expectations and heighten speculation, the stock
will eventually find weakness. That is what has happened with our examples.
They are good companies, and will probably all turn around when they get
closer to exciting the market again. Until then, own cash.
Enough Said.
Vancouver Active Issues
A very quiet week on the speculative markets, our comments are
appropriately short this week ...
St. Jude Resources (SJD)
The weakness in the gold market and the lack of new news has taken SJD
lower as investors show no patience. We think that there is enough down the
pipe to bring investors back to this stock, but we suggest watching the
market activity for an indication of a bottom as it is difficult to know
where the low can be. SJD is definately a stock worth watching in
consideration of their strong market awareness and promising property
groups in Ghana. 45%
PanGlobal Resources (PGE)
PGE has a strategy of building production levels in Canada to give
stability to their company while exploring the larger, big upside
exploration plays that can bring a lot of speculative value and excitement
to the stock. The market activity this week indicates that something has
happened, perhaps on the speculative side of the company's focus. We have a
pretty good idea what is going on, but will keep quiet until some other
things come together. What PGE is working on can bring big upside, and we
suggest watching the stock closely. Watch for news near term. 65%
Ascot Resources (AOT)
bmts.bc.ca
Monopros drilled the Victoria Island project that is owned by AOT and MGJ
and discovered kimberlite (diamond indicator). Monopros can earn 51% of the
interest by carrying out all the work. Stock moved higher on the news and
is one of the few pockets of strength in this market. Can be explosive if
the kimberlite has good diamonds in it. News on that will be 2 to 3 weeks,
so expect the market to go into a holding pattern while waiting for the
results. We expect the stock to hold under a dollar and volatility to
diminish in the weeks to come. 60%
Major General (MGJ)
majorgeneral.com
Same situation as Ascot, but share structure not as good as there is a 48
millions shares fully diluted compared to Ascot's 22 million. 55%
Donner Minerals (DML)
donner-resources.com
Drilling continues, and the stock heads lower. The South Voisey Bay players
will have to announce a good drill hole soon or the downtrend will
continue. Stock appears to be headed toward the dollar level near term. 40%
El Misti Gold (EMG)
elmisti.com
Last week, we discussed the market's reaction to what was positively toned
news. We suggested that this reaction indicated that the stock was likely
headed lower, which it has done this week. This demonstrates that it is not
the news that matters, but the market's perception and reaction to the
news. EMG should find its bottom here soon. 60%
Alberta Active Issues
First Star Energy (FST)
discoveryplace.com
Looks as though FST is in a holding pattern as the market awaits the
release of results. Operator Apache has a tight rein on information right
now. FST is the most well promoted stock in the Strachan group, and trades
with the best liquidity. The stock seems to be defended above $0.90, if it
closes below that it may be because negative rumours are hitting the
market. Upside potential is there, but a lot of value already priced into
this play. 55%
Cybersurf (CY)
Cybersurf announced good financial results this week and appear to be going
into promotion stage again. Company is presenting a "press" conference in
Calgary on Monday, which will likely be a promotional show to encourage the
purchase of stock. Sounds like some of their internet products are pretty
good ideas, we could see this stock perform. Was very strong this week,
looks like it wants to go higher still but we caution as the risk at these
levels is very high. 60%
Anvil Resources (ANV)
anvilltd.com
ANV was weaker this week, it is difficult to know whether this is
reflective of problems with their program in Texas or if it is the general
pessimism which surrounds the energy sector. While we wait for news, all we
can count on is the market activity, and it appears that money is moving
out of the stock in advance of the news, which is not a positive thing. We
think the news will be good, but not so good to surprise the market enough
to take this stock to new highs. Be defensive in anticipation of news. 40%
Wenzel Downhole Tools (WZL)
Market continues to trade this stock actively on the rumour of a takeover.
Some disagreement on price in the rumour mill, ranging from $2 to $3. The
stock can certainly go higher from here, but it is risky as there is a good
deal of speculation priced into the stock right now. 55%
**************************
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This is not an investment advisory, and should not be used to make
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