Southwestern Resources (SWG.TO)

WAIT
Probably one of the more disappointing companies. If it drops below $7.50, Newmont (NEM-N), which already has a relationship with them, may be interested in taking them out. There won't be a big premium. Consider putting in a stink-bid below $7 in December.
DON'T BUY
Company continues to expand its asset in Yunnan. Also has expansions going on in Latin America. Has been very quiet and you can probably do better with other companies, such as Agnico-Eagle (AEM-T).
DON'T BUY
Have some pretty attractive assets. Balance sheet is in great shape. Located in China and a lot of people are wary.
DON'T BUY
Doesn't like management.
BUY
They are going to spin out a zinc asset. Doesn't know how much the market will value this. 2 gold deposits, one in China and one in Peru. Gold has been moving nicely lately.
BUY
Has a really big asset in China. You just don't know, is it mineable. It seems to be getting closer. Have done some other projects internally on other base metals, which has him excited and which could propel the stock into the mid-teens.
WEAK BUY
There have been a series of lower lows and the last corrective period since May there have been a series of lower highs. You can buy, but make sure you have a Mental Stop at $8.49.
HOLD
Perking up a little bit of favourable news on its base metal assets. A slow mover.
DON'T BUY
A gold mine in China. Question is, and they really there and if so, can they get the gold out. Would prefer a North American unhedged gold instead.
WEAK BUY
Had some good drilling news in the last couple of days. Has been disappointing and is clearly not as spicy as others.
TOP PICK
Basically in China but also have a large land spread in Peru. In the process of proving up a significant resource in China which can be converted to reserves of a minimum of 5 million ounces. The correction in the sector is giving a great opportunity.
BUY
Doing a spinout of their zinc assets. A lot of people don't like China right now and the exploration market is spinning back towards safer names. When we get a market recovery, the stock should do quite well.
COMMENT
Unfortunately, the last balance sheet was in December and there is only one estimate included in his database. Doesn't have a model price.
BUY
This has been one of the laggards in the sector so this may be a place to nestle in. He is kind of getting negative on the commodity play. The one-year chart shows that is not a bad pattern.
HOLD
Did very well in 2003, broke out in 2004, then went into a correction and bottomed out. Had a base building for about a year and a half, broke out at about $11 and is now in a secondary accumulation. A move above $16 would indicate the next move upwards.
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