Charles Oliver, HBSc CFA
Southwestern Resources
SWG-T
COMMENT
Jul 07, 2008
Some controversy on some of the reported drilling results, which they are working through. Extremely cheap. Have some good assets. Think the stock will be plagued until the Board of Directors comes out and presents a new company.
Would be a little concerned if it started to break down through the current lows but in the meantime would continue to hold. Will take awhile to get back up to the $12 area.
(A Top Pick Nov 30/06. Down 9.7%.) Still buying. One of the great generators of mining projects. Looking for it to be taken out in the next couple of years.
Has acted extraordinarily poorly and he doesn't know why. Perhaps management doesn't project well. Thinks they have 5 million oz. in China, which could be proven in a feasibility study in the near future. Very cheap. Buy as a value play.
Has been a disappointment in terms of development of its mine. Haven't been able to get it together in finding enough resources to push mine development aggressively.
If you are long, he would suggest that you reduce. Do not add to your position. When stocks have a horrific decline like this one, they can go to zero.
The value of the Latin American assets might, at the very least, be equal to the current stock price. You have to have regard as to where the company is going as an entity. Has been a hideous disappointment due to lots of unfortunate circumstances. There is a lot of intrigue behind this. Still have their Peruvian operations.
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