OTCPK:CFMSF - Post by User
Post by
tooclassyon Nov 04, 2010 8:50pm
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Post# 17661198
TSI (Spec Investor) recommends buying CFO
TSI (Spec Investor) recommends buying CFOTSI (The Speculative Investor) updates their buy recommendation
Source:
https://www.speculative-investor.com/new/index.html
Clifton Star Resources (TSXV: CFO). Shares: 33M issued, 39M fully diluted. Recent price: C$4.17
In the 4th October Weekly Update, we wrote:
"We suspect that the current inability of CFO's stock price to get any traction is primarily due to the consistent selling of one large shareholder (Joe Dwek Management - JDM). This shareholder has indirect control over about 13% of CFO's fully diluted share count, and for reasons that in our opinion have nothing to do with CFO's speculative merits appears to be set on making a complete exit by selling into any strength."
Good news: Thursday's massive trading volume in CFO shares (2.8M shares, or about 8.5% of the company, changed hands on the day) was due to JDM selling the remainder of its shares. It still controls about 2.5M CFO warrants, but its ability to affect the market is now greatly reduced.
This year's drilling campaign at CFO's Quebec-based Duparquet project is complete, but the results of many holes are still to be reported. Consequently, we expect to see more drilling-related news from CFO over the next couple of months. The news that will likely have the greatest effect on CFO's stock price, though, will be the announcement of whether or not its joint-venture partner (Osisko - OSK) has decided to continue with the JV. We believe that this announcement will occur by January at the latest.
Confirmation that OSK has decided to continue with the JV would effectively be confirmation that CFO's Duparquet project contains at least 10M ounces of gold, because OSK would not likely be interested in the project unless it were of this magnitude. It would therefore also be confirmation that our C$13/share target is reasonable.
There are no guarantees, but we will be very surprised if OSK decides not to continue with the project.
CFO is a good candidate for new buying near its current price.
