7936567 Canada Inc SWYDF

RE: : RE: Why the sell off?

[drdiablo]

Stornoway has top-notch management and promising properties.  However, the diamond sector is cold as ice.  Investors are much more excited by fertilizer than by precious stones.  I don't think SWY should be thumping the tub to try to jack up the share price right now.  They'd be fighting the ticker all the way.  The best thing the company can do is conserve its cash and advance its projects while waiting for diamonds to glitter again.  The best thing an investor can do is to forget he owns it.

I made good money by purchasing gold stocks when gold was languishing at $200/oz, and again when oil looked like it would never see $20/barrel again.   Those are the times to buy--if you can be patient.  Right now, I try to trade the hotter sectors and ignore the cold ones.

There is reason to be nervous.  If diamonds continue to underperform, the company may have to dilute us out of existence to stay alive.  There may need to be a share rollback.  They may need to joint venture on disadvantageous terms.  However, if Stornoway can persevere, it is in a prime position to benefit when the diamond sector ignites.  I'm going to try to hang in there with them.  I recently bought a fairly large block.  I wasn't excited about it; I was just trying to be a good contrarian.  Years ago, when I was well into the red on my gold stocks and the yellow metal was going nowhere but down, I read a WSJ article claiming that gold was a "barbaric relic" and would never go up again.  My heart sank at first.  Then, I thought to myself that if this kind of speculation usually signals a bottom.  I went to the phone and doubled up on my gold stocks.  Before long, I had made a bundle.  Diamonds will someday reward the patient investor in that same way.

Anybody with doubts about the economics of SWY's projects should call Investor Relations.  Right now, they have lots of time to talk.