Stock has done well. Be aware of the gap on the chart. It is a speculative stock. Suggests that buy at a break-up of 80 cents or a pull back of 60 cents.
Diamond stocks are not necessarily a cakewalk. This is a story where a mine was put into production in the North West Territories, but costs were a lot higher than expected and the company ran into cash flow problems and the grade was not what they expected.
They are out of money and are doing a rights offering. Their big partner Teck (TCK.B-T) has decided not to participate. This is a sign that there is not much left there.
Has been watching this. Has had a long cycle of exploration, development and production. During the anticipation phase, companies get quite well valued, but seem to drop at production time. Would look for it to be bottoming out.
This has had a terrible downtrend. Any future sell offs you don't want to make a new low. If the November low, which is now being tested, holds it could be a sign of a new bottom. After that, you want to see if you could make a higher high.
Had a problem recently in that production was much lower and grades where much lower. A well structured company. They have an agreement with Tiffany Diamonds.
Diamond producer. Significant run-up late last year because of a kimberlitic pipe called “Musk Ox”. Still trying to determine its size. Jericho mine just went into production. Will announced their quarter Aug 3rd. Stock is fully valued for Jericho.
Thinks the story is playing itself out. Had a big run-up when it looked like the mine was going to be a commercial. Time to move on to the next one that he thinks is Shore Gold (SGF-T) at the right price.
Had felt that this would be the next operating diamond mine in Canada. But the stock to go any higher, they have to have fantastic operating success or have additional resources which he can't see.
Tahera is coming into production April 06. (diamonds) It has taken around 10 years to get to this stage. It is a good area and good exploration potential. He owns shares in Shoregold in Sask. as one of his diamond stocks.