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Gold/Mining/Energy : Winspear Resources -- Ignore unavailable to you. Want to Upgrade?

To: Lilian Debray who wrote (16226)	3/20/1999 6:45:00 PM
From: Gord Bolton	Read Replies (2) \| Respond to of 26850

I gotcha, Lilian. You are looking for an exact mathamatical formula for value. In some cases with speculative stock it does not apply. It is best to think of it as market psychology. Lots of people (well at least several) are sitting down this weekend and trying to fugure out some formula to tell them how much WSP is worth at various % of ownership, X Millions of tonnes, $XXX value per carat and X.X carats per tonne. Everyone might have their own formula and estimations. WSP will be in play before or after the bulk sample. However, no one has any handle on what the other interests and properties of WSP are worth. THerefore the default market value of WSP is the Snap Lake deposit and what people think it is worth. The other properties have potential as well. So by splitting them up WSP Sr will still have the value associated with Snap Lake and whatever happens there happens. However, after the split, and whatever happens, current WSP shareholders will still have a share in the remaining potential and value of WSP in WSP Jr. WSP Jr will be listed and will be trading and issueing it's own reports and ultimately the market will assigne a value to that property as well. In this case 3 divided by two may equal 3 plus 1. To use a similar example. Compaq computers acquired one of its competators recently Digital or DEC. The acquasition included Alta Vista. Compaq continued to be valued by the market on the basis of how many computers were sold at what profit. No value was assigned to Alta Vista even though similar Web services were attaining ridiculous market evaluations on their own. Compaq will separate Alta Vista into a separate stand alone company and by doing so shareholder value will be enhanced.

To: Lilian Debray who wrote (16226)	3/20/1999 8:48:00 PM
From: Tony from Niagara	Read Replies (2) \| Respond to of 26850

Lillian, Given the earnest nature of your inquiry, I have put aside my reticsence to post to this thread which unfortunately has been laid waste to by excess and insult, and offer the following thoughts: 1. Assume you control WSP. 2. Assume you also own 1000 shares of WSP. 3. The market value of those shares (and everyone else's) is so overwhelmed by the possible value of WSP's assets at Camsell Lake (for the purposes of this analysis I ignore the ABZ interest, whatever the courts may determine it to be) that the remaining assets (Hilltop and others) do not contribute appreciably to the market value of the shares. 4. You believe that Camsell Lake is about to be proven to be of commercial value. This will require the involvement of an industry major that will invest a substantial sum to bring the asset to production (say $500 million). This will unquestionably result in a loss of control of the Camsell Lake project, and under current corporate structure, a highly probable loss of control of WSP. 5. You wish to maximize the value which you may derive from your shares in WSP, and all of its assets, and not be limited to the value of WSP's interest in Camsell Lake. 6. You (and other significant insiders) also wish to ensure your (and their) continued employment in exploration, which ideally would occur in relation to the non-Camsell prospects of WSP. 7. Accordingly, you devise a plan to divide WSP into two entities. The effect on your shareholding is as follows: (a) You will hold 1000 shares of New WSP which will own the current WSP interest in Camsell Lake. (b) You will also hold 125 shares of NewCo which owns the remaining assets of the old WSP. 8. Since (the old) WSP is assumed in this analysis to trade exclusively upon the value of (its interest in) Camsell Lake, the market value of New WSP should not appreciably decline on account of the division of the corporation alone. 9. Since NewCo has promising properties which are about to be explored, it should have some market value which is not presently recognized. 10. In the worst case the value of New WSP and NewCo should not be appreciably different from the value of an undivided (old) WSP, since except for legal and accounting fees, the expenditures will be the same as you will run both companies out of a common office until New WSP's asset comes to fruition. What is not yet stated by WSP (at least publicly although it was abstractly alluded to in my discussions with Ms. Turner of WSP at PDAC) is that the 1/8 offering of shares in NewCo will afford an opportunity for (or require) a significant private placement to provide an sufficient treasury for initial exploration of its properties. If (as appears to be the case) the total number of shares outstanding is relatively small (say 4+ million), then 20% of the company (1 million) can be attractively offered to well-placed investors for modest amounts. How that may play into the hands of current shareholders is not now known to me and will depend at least in part upon the placement price and upon the amount of cash transferred to NewCo by old WSP. IMHO, provided the price is right, the small investor may benefit. I'm certain I've missed several points in this analysis, and suggest that you do your own investigation. Personally, and without recommendation of any sort, I stay long. WSP reportedly has diamonds - what remains to be seen is how many and in what concentration. Regards, Tony E & O E

To: Lilian Debray who wrote (16226)	3/20/1999 9:16:00 PM
From: Dave M	Respond to of 26850

Lilian, if you are having trouble with the split concept, I suggest you go buy mutual fund and stay away from Vancouver stocks completely. I think that WSP might be your only exception, but only use your gambling money only, this is not a sure thing yet. The risk/reward potential is great, but if the bulk samples come up empty it won't matter how many shares of both companies you own, the value will be $0, IMO. I am not trying to scare you away, but, I feel that you need to know that you can loose all your money in a short period of time. I own many stocks that my broker recommended that are now worth 1/10 of my purchase price, he never even called to tell me prices were dropping. That was prior to the internet where I can now learn more about a stock and get current information, SI is a great tool, but not all the posters are honest so be carefull. Good luck. Dave M