Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Queenstake Resources (QTR.T) -- Ignore unavailable to you. Want to Upgrade?

To: Shirley Owen who wrote (1678)	1/5/1999 7:20:00 PM
From: Claude Cormier	Read Replies (1) \| Respond to of 2249

<<But couldn't one say that about any of the spec stocks? That is the very meaning of speculation, and that is why there is a high risk-reward. >> Well almost. When you have reserves that are already identified with a positive scoping or feasibility study or things like that...you remove quite a lot of risk while exploration is continuing therefore maintaining the upside potential. There are quite a few in this category that are not a lot more pricy than QTR. << By the way, I've been scouting out SWG just a little, and I notice they too wrote off over 6 million in projects this past year. This is the name of the game. >> I agree...that is the game. << The only problem I have with SWG right now is this: yes, they have 30 million in the kitty,(quite a war chest), but if there are a little over 15 million shares out(according to Stockwatch, which is notoriously behind the count) then that is a cash share value of $2.00, but it is trading in the $6.00 range. Don't forget it takes a rise of $6.00 to get a double at those prices. With Queenstake it only takes .46 as of this moment. >> You may have a point. SWG as 14.7M shares out. It was $30 a few year ago, and $2++ last summer when I recommended it ..so it already almost tripled in 6 months...similarly to QTR when it was above $0.75 last year. So the stock price level didn't affect the stock performance and SWG seems to be holding much better with no shareholders dumping the stock. Do you remember Sutton Resources in the 1993-94...it went from $5 to $55..up 10-fold on their discovery of a 5M ounce in Africa (granted, we were in a bull) ... still, it was a case of high stock price, but low number of share outstanding...and there are several case like that. So, I suggest you consider the market capitalization instead of the stock price. For sure SWG will have a bit more problems moving from a cap of $84M to $168M than QTR might have to move from $20M to $40M, if all we have to count on is a better market mood. But I would say that the minerals assets of SWG, including hundreds of properties and more than 2 dozens JV's, as well as one already discovered large zinc deposit and two highly probable world class gold deposits (if you want more details, I'll be happy to gave them to you on the SWG thread), make it almost garanteed that SWG will exceed its former high near $30...in fact I have a much higher target for the next cycle. Now how certain are we that QTR will make it to its former highs ? What do they need to get there.. A discovery of at least 4-5 millions ounces... well it is possible they will get it...but they have only a few chances. In short, SWG has a market caps 4X higher than QTR (fully diluted at current rpices). But it has also 4-5X the cash, 12X more JV's of similar quality, 75X or so more properties that can be JV'ed.. metals already indicated and inferred in the ground that themselfes justifies more than the $6 stock price...and...56% in a diamond exploration company Canabrava. I am not trying to sell SWG here...or any other stocks... but when I compare market caps and assets...I find many opportunities that I feel are better risk/reward situations than QTR above $0.40. If QTR gets to less than 100% premium over cash or if one good hole is reported..then I will most certainly change my opinion. CC