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Gold/Mining/Energy : Derlan (T.DRL) -- Ignore unavailable to you. Want to Upgrade?

To: edward harris who wrote (232)	5/30/1999 12:14:00 AM
From: thomas gentry	Read Replies (1) \| Respond to of 319

Though I don't hold any DRL just now, around Christmas-time last year I was lucky enough to ride it from $1.25 to $2.20. Derlan was a very sick company then (and arguably still is), but I bought in at that time on what seemed to be a hugely oversold condition. Though the stock price subsequently softened, I have kept an eye on DRL's comings and goings, particularly with regard to their string of divestments. While there can be no arguing the fact that the Boeing deal has enormous bullish implications for Derlan, Friday's price decline was no surprise. There is a pervading "show me the money" hurdle that all small caps (and particularly Canadian small caps) must overcome. Magellan Aerospace (MAL) - a company that I'm heavily invested in just now - is suffering the same fate at present, locked at $9.50 despite fundamentals that argue convincingly for a $13 valuation. Given Derlan's disappointing past performance, this kind of hurdle is all the more difficult to overcome. All this offers significant opportunity however. Think of it - despite news of the Boeing deal, DRL traded as low as $2.15 on Friday. Oversold? No doubt about it. Yet until the market fully digests the implications of Derlan's Boeing deal, expect the same kind of volatility that has led to this oversold condition to repeat itself several times in the weeks ahead. While action like this must frustrate the hell out of the buy and hold crowd, it generates significant profits for trading houses and short term traders alike. Expect the press to publish even more ridiculous "expert opinions" from companies like Octagon in the days ahead. All the better to feather trading house nests. Personally I don't think it matters whether you're a trader or an investor with respect to DRL. Both will continue to benefit as Derlan's valuation catches up with its bullish fundamentals. Me? I'll be trading DRL soon. Thomas