John Kaiser on PGD-results any mommentDAVID PESCOD STOCKTALK LATE EDITION, September 2, 2011
PEREGRINE METALS (T-PGM) $2.41 -0.02
PEREGRINE DIAMONDS (T-PGD) $1.71 +0.16
The question that is being asked by many speculators and those still left in the market these days...how come with gold doing so well, many gold stocks have not participated as much as one would have hoped.
Part of the answer of course is our suggestion that so much money is on the sidelines, but John Kaiser, takes a good look at that question.
We snatch two paragraphs from his more recent article (you really should read his entire report though, to contact Kaiser: https://www.kaiserbottomfish.com/s/Home.asp). Anyway, in the report Kaiser writes “We should however take our cue from the intermediates (producers), which have responded because they were not carrying a gold “premium”, carrying instead a risk “discount” related to their dependency on one or just a few gold mines. Most of these intermediate producers are unhedged, and consequently the benefit of the higher gold price flows directly to the bottom line. They are trending up because the market respects cash flow and because it expects the intermediates to be swallowed by the majors. ----------
But we ask John our favorite question and in an ugly market with money parked on the sidelines, John if you could only buy one today what would it be? He comes up with a story he’s following closely and has had
high hopes for ever since it was only
.25 a share. And that’s Peregrine Diamonds. Many, many, many months behind schedule they should be announcing results on their diamond plays in Canada’s far, far North, any hour, any day, any week.
John is hoping for something tasty. Meanwhile, Kaiser also mentions to us that the production of diamonds around the world, with ever-less productive pipes, is declining at the same time demand in China is heading up.
A bit jokingly he mentions the one child policy in China and the fact that there is a shortage of women with all the single guys over there. He suggests the ability to present one sweetie with a significantly sized diamond just might impress some folks.
Anyways, Peregrine Diamonds, we suspect when its news does come out, could be quite significant to the story. Kaiser also mentions that with Eric Friendland’s success on his other company, Peregrine Metals, being bought out with the surprisingly generous bonus, could attract a lot of attention given that success in his other story, should those numbers be good.