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

To: TMAZZ who wrote (592)	1/16/1999 7:50:00 PM
From: John Sladek	Read Replies (2) \| Respond to of 962

Tony Anybody have any comments in regards to Breakwater being ousted out of the TSE300 as of Feb. 19/99. This is part of a readjustment being done by TSE to reflect more tech. stocks. BWR is not being "ousted" from the TSE-300 in favour of tech stocks. I think that is that it is being removed because its market capitalization is too small. The TSE-300 is the 300 largest companies on the TSE, and at around $1.00 / share BWR's market cap is miniscule. Here's the rules for inclusion in the TSE-300 tse.com My thoughts are, this would have a negative effect, but I not sure how much! For instance, funds that can only hold TSE-300 stocks or funds that are trying to index to the TSE300 will start to sell BWR shares in anticipation of it being removed from the index in February. This could be mitigated somewhat by a share buyback. BWR is authorized to buy up in excess of 4MM of its shares, so this could help to pick up a bunch of shares being dumped by funds. Also, some analysts might drop coverage of the stock since its not in the TSE300. As to the net effect - who really knows? The reality is that BWR's price is well-correlated with the price of Zinc. Zinc is trading at very low prices right now - so is BWR. If zinc looks like its going to move, BWR will get some attention. Who knows when that will be though. Regards, John Sladek