Topic: How To Invest

Hi Pat, I am thinking of buying Indigo Exploration and RIFCO Inc. What are your thoughts about these stocks? Thanks.

Article Excerpt

Indigo Exploration, $0.46, symbol IXI on Toronto (Shares outstanding: 19.2 million; Market cap: $8.8 million; www.indigoexploration.com), is focused on exploring its Moule property in the west African nation of Burkina Faso. Basic surface and trench sampling has revealed gold mineralization. The company is now undertaking a 5,000-metre drilling program to follow up on these results. Indigo has cash of $800,000 to fund the program. West Africa has favourable geology for gold mining, and there are several major producing mines in the area, including mines operated by IAMGold, AngloGold Ashanti, Randgold Resources, Gold Fields Limited and Newmont Mining. However, while properties in the same region as existing mines can contain significant gold deposits, the odds of finding a mineable deposit are still very remote. At this early stage of its development, we don’t recommend Indigo Exploration. A: RIFCO Inc., $0.87, symbol RFC on Toronto (Shares outstanding: 19.3 million; Market cap: $16.7 million, www.rifco.net), is a Canadian automotive finance company. The company makes loans to…