Stockchase Opinions

John WeatherallHarry Winston Diamond Corp.HW.TOTRADEJun 23, 2004

Market capitalization is very big and shares are not that cheap. Everything else about the company is superb.
$40.50

Stock price when the opinion was issued

integrated mines
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DON'T BUY

It just isn't a growth asset. He tries to ignore these types of businesses. There is no way for this to grow.

HOLD

Thinks that management has indicated that if revenues get big enough they would consider another spinoff (of the jewellery division), which would be a good move.

PAST TOP PICK

(A Top Pick June 14/11. Down 16.03%.) They separate the mine and the luxury retail division. Doing quite well relative to other retail sectors.

PAST TOP PICK
(A Top Pick June 14/11. Down 21.15%.) Recent earnings report missed analysts’ expectations. Sales were up 34% were below estimates.
PAST TOP PICK
(A Top Pick. June 14/11. Down 13.22%.) Given the expansion of the jewelleries/watches business, they will eventually spin their 2 businesses apart.
HOLD
Diamonds. You can put a higher rating on the retail assets, particularly expansion in the far east and particularly the scarcity of diamonds. Good results reported about a month ago.
DON'T BUY
125 day moving average was broken. Head and shoulders pattern was broken. If he saw it go much lower he would find a better name. If you see it get back above $17, buy it. There are better names out there. There is no momentum.
HOLD
Sold most when they cut their dividend. Likes the assets. Probably cut dividend for the right reason. Likes the mining the most. If they got back to 3% he would be interested.
TOP PICK
There is a world shortage around the world in rough diamonds. Mine production is being stabilized in NWT. Big push is in jewelry and especially in watches. Certainty of expanding jewelry business in China.
COMMENT
Up about 40% this year. 2 components. 1) A mining operation they’ve been working on with Rio Tinto (RIO-N) in the North West Territories. Had some really good results lately. 2) Also have 35 Salons operating and it looks like they will be expanding. Japan is about 20% of their retail sales so surprised this was not affected. Stock is overbought which worries him.
WAIT
Had a disappointing 1st quarter but retail sales were looking at little better. A “wait and see” stock. Earnings forecasts make it look expensive.
COMMENT
Has been watching this one. Diamonds is a fascinating area and this is one of the leaders in the field. Has run too far for him but could still have a long ways to go..
PAST TOP PICK
(A Top Pick Jan 8/08. Up 81.7%.) Took his profits on this one.
PAST TOP PICK
(A Top Pick Jan 8/09. Up 75.15%.)
DON'T BUY
Earnings estimates chopped by 90% in the last 90 days.