AI
Saturday, February 07, 2004 2:45:02 PM
Dan, did you see this negative WHT article?
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Hi Joe Bob,
Please excuse my tardy response. A flock of "snowbirds" flew in from CUBStown yesterday and my lovely wife just now retracted her threats to leave me if I dared to try logging on to my Dell. <g>
No, I hadn't seen that article nor am I familiar with the author, but it sure reminded me of some of the FUD articles written by the anti-Rambus camp when I was following that stock.
For whatever reason, clicking on the link you provided accesses the MoneySense.Ca website, but has an "article does not exist" notation. I wonder if it has been pulled?
I haven't had much time to check into MacDonald's allegations, nor do I intend to, but even if 100% accurate, I don't see sufficient reason to do more at this time than to watch the price action for further clues.
His comment that "Another uneasy omen is what some might interpret as aggressive accounting. Namely, for the nine months to Sept. 30, several million dollars in costs were capitalized (relating to debt issuance and gold-put options) and several more million dollars in one-time gains (asset sales and foreign exchange) were included in net income." seems ludicrous to me, as if WHT should have not bothered to claim the income on their earnings statement.
Yahoo's five day chart of WHT's price action shows an early morning break on Thursday, the day the article came out (2-5-04) with it closing at the day's high and the strength continuing through yesterday's session.
Interestingly, I came across another MacDonald article dated 1-29-04 entitled "Watch the short sellers."
Despite it's length, he only mentions one company, Wheaton River, and that mention comes in the final two paragraphs and suggests to me that MacDonald may have his own agenda w/r WHT:
"If one gives the published short sales data a look, they will see a few interesting things. Of note is a red flag on a currently popular stock, one that regularly makes the top-ten most active list and has nearly tripled in price over the past year: gold-mining company Wheaton River Minerals Ltd.
The short position has risen nearly steadily on this interlisted stock (TSX and AMEX), from 2 million on May 30, 2003 to 34 million on Jan. 15, 2004. Concomitantly, the ratio of short sales to daily trading volume has climbed from one to five. Does some bad news lurk on the horizon?
Jan. 29, 2004"
http://www.moneysense.ca/investing/stocks_markets/columnist.jsp?content=20040129_110633_5464
I appreciate the heads up, JB, and will keep it in mind, but as of now, I'm of the opinion that WHT's recent NR that they will be "doubling their production by 2006" is reason to hold on for further gains.
Enjoy the weekend.
===============================================================
Hi Joe Bob,
Please excuse my tardy response. A flock of "snowbirds" flew in from CUBStown yesterday and my lovely wife just now retracted her threats to leave me if I dared to try logging on to my Dell. <g>
No, I hadn't seen that article nor am I familiar with the author, but it sure reminded me of some of the FUD articles written by the anti-Rambus camp when I was following that stock.
For whatever reason, clicking on the link you provided accesses the MoneySense.Ca website, but has an "article does not exist" notation. I wonder if it has been pulled?
I haven't had much time to check into MacDonald's allegations, nor do I intend to, but even if 100% accurate, I don't see sufficient reason to do more at this time than to watch the price action for further clues.
His comment that "Another uneasy omen is what some might interpret as aggressive accounting. Namely, for the nine months to Sept. 30, several million dollars in costs were capitalized (relating to debt issuance and gold-put options) and several more million dollars in one-time gains (asset sales and foreign exchange) were included in net income." seems ludicrous to me, as if WHT should have not bothered to claim the income on their earnings statement.
Yahoo's five day chart of WHT's price action shows an early morning break on Thursday, the day the article came out (2-5-04) with it closing at the day's high and the strength continuing through yesterday's session.
Interestingly, I came across another MacDonald article dated 1-29-04 entitled "Watch the short sellers."
Despite it's length, he only mentions one company, Wheaton River, and that mention comes in the final two paragraphs and suggests to me that MacDonald may have his own agenda w/r WHT:
"If one gives the published short sales data a look, they will see a few interesting things. Of note is a red flag on a currently popular stock, one that regularly makes the top-ten most active list and has nearly tripled in price over the past year: gold-mining company Wheaton River Minerals Ltd.
The short position has risen nearly steadily on this interlisted stock (TSX and AMEX), from 2 million on May 30, 2003 to 34 million on Jan. 15, 2004. Concomitantly, the ratio of short sales to daily trading volume has climbed from one to five. Does some bad news lurk on the horizon?
Jan. 29, 2004"
http://www.moneysense.ca/investing/stocks_markets/columnist.jsp?content=20040129_110633_5464
I appreciate the heads up, JB, and will keep it in mind, but as of now, I'm of the opinion that WHT's recent NR that they will be "doubling their production by 2006" is reason to hold on for further gains.
Enjoy the weekend.
Dan 
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