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Gold/Mining/Energy : Canabrava Diamond -- Ignore unavailable to you. Want to Upgrade?

To: Claude Cormier who wrote (1217)	4/27/1999 7:22:00 AM
From: m.philli	Read Replies (1) \| Respond to of 2402

Morning Claude, I don't hold any SWG,although I wish I did. They still have approval to buy back quite a large block of stock and one of these mornings they will do that, if they are not already. As a SWG shareholder what's your opinion on your company selling that 3mm shares of CNB at 80 cents? As a CNB shareholder not much I can say about their doing a pp with SWG at $0.75, if they need working capital, they need it. Also it's going to the parent who has given them strong support all along. I could see allowing them to benefit in the future rewards that would come with good news. But with Swg immediately selling 3mm at the 80 cent level I would think as your being an SWG shareholder, you would wonder "what the hell are they doing". They have large volumes of cash, so that's not the concern. LOTS OF Activity is happening on 3 joint ventures so their should almost surely be upside coming in CNB stock. At $0.75 cents there has to be very little downside risk to their holding that 3mm shares of CNB until positive results come one on one of these operations. They should have a very good idea of what some of those results should be. Other than providing some liquidity perhaps, I just don't see where this is acting in your best shareholder interests. We know management are sharp cookies, so why? Wouldn't you think they should have taken the minimal(non-existent imo)risk of hanging on to the extra 3mm until CNB achieves a price rise and analysts rating to interest an institutional fund looking for a block large enough to meet their requirements. I don't understand their strategy, if you could enlighten me, please do.The way i'm looking I see a 2.5 mm short term investment with at least a 5mm return if they had held off on the sale?-mike