Stornoway Diamond

Long-time readers know that we are constantly reevaluating our stock picks. Here are 12 stocks that have only limited growth prospects for the foreseeable future. We now see them all as sells.

TETHYS PETROLEUM $1.42 (Toronto symbol TPL) produces and explores for oil and gas in Central Asia. Operating in that region adds significant political and legal risk to the …read more »

INTERNATIONAL ROAD DYNAMICS $0.62 (Toronto symbol IRD; SI Rating: Speculative) (306-653-6600; www.ird.ca; Shares outstanding: 14 million; Market cap: $8.7 million; No dividends paid) reports that its sales fell 16.4% in the three months ended November 30, 2010, to $10.7 million from $12.8 million a year earlier. The drop was due mainly a stronger Canadian dollar, which pushed down the company’s …read more »

WESTJET AIRLINES $15.45 (Toronto symbol WJA; TSINetwork Rating: Extra Risk) (1-877-493-7853; www.westjet.com; Shares outstanding: 139.8 million; Market cap: $2.2 billion; Dividend yield: 1.3%) has just signed an “interline” agreement with Delta Air Lines. Under these agreements, two airlines cooperate on flights and baggage handling. WestJet has similar arrangements with Air France-KLM, China Airways of Taiwan, Hong Kong-based Dragonair and American …read more »

We’ve had lots of success with the junior mining stocks we recommend in Stock Pickers Digest, our newsletter for aggressive investing.

For example, in a recent issue of Stock Pickers Digest, we updated our buy/sell/hold advice on a junior mine that’s risen more than 300% for us in the past year. See below for further details on this up-and-coming diamond …read more »

COMPTON PETROLEUM $1.25 (Toronto symbol CMT; SI Rating: Speculative) (403-237-9400; www.comptonpetroleum.com; Shares outstanding: 130 million; Market cap: $162.5 million) has dropped its plan to sell the company. In February, 2008, Compton initiated a strategic review in response to repeated requests from its largest shareholder, New York-based private equity firm Centennial Energy Partners. Centennial holds a 19.8% interest in Compton. In …read more »

STORNOWAY DIAMOND CORP. $0.22 (Toronto symbol SWY; SI Rating: Start-up) (1-888-338-2200; www.sornowaydiamonds.com; Shares outstanding: 227.2 million; Market cap: $50.0 million) holds interests in over 14 diamond exploration properties in Canada and one in Botswana. TSE-listed Agnico-Eagle holds a 17.7% interest in the combined company. Global mining giant Rio Tinto Limited holds an 11.2% interest.

Stornoway’s projects include a 50% interest in …read more »

Here are two of the most promising early stage diamond stocks. Both have speculative appeal, but they are buys only for highly aggressive investors.

STORNOWAY DIAMOND CORP. $0.22 (Toronto symbol SWY; SI Rating: Start-up) (1-888-338-2200; www.sornowaydiamonds.com; Shares outstanding: 227.2 million; Market cap: $50.0 million) holds interests in over 14 diamond exploration properties in Canada and one in Botswana. TSE-listed Agnico-Eagle holds …read more »

STORNOWAY DIAMOND CORP. $0.45 (Toronto symbol SWY; SI Rating: Start-up) (1-888-338-2200; www.sornowaydiamonds.com; Shares outstanding: 198.9 million; Market cap: $89.5 million) holds interests in over 15 diamond exploration properties in Canada and one in Botswana. TSE-listed Agnico Eagle holds a 13.1% interest in the combined company. Global mining giant Rio Tinto Limited holds a 12.9% interest.

Stornoway’s projects include a 50% interest …read more »

Here are two promising diamond exploration stocks. Both have speculative appeal, but they are buys only for highly aggressive investors.

SHORE GOLD $3.80 (Toronto symbol SGF; SI Rating: Start-up) (306-664-2202; www.shoregold.com; Shares outstanding: 182.7 million; Market cap: $694.3 million) owns 100% of the Star diamond project in the Fort a la Corne area of Saskatchewan, which hosts one of the most …read more »

STORNOWAY DIAMOND CORP. $1.03 (Toronto symbol SWY; SI Rating: Start-up) (1-888-338-2200; www.sornowaydiamonds.com; Shares outstanding: 200.2 million; Market cap: $206.2 million) recently completed the acquisition of TSE-listed Ashton Mining for $117 million. In a separate transaction, it also acquired all of the outstanding shares of TSE-listed Contact Diamond for $19 million.

The new combined diamond-exploration company holds cash of $37 million. It …read more »