Topic: How To Invest

Hi Pat: What do you think of Peregrine Diamond Ltd.? Is it worth thinking about or just hot air? Thank you.

Article Excerpt

Peregrine Diamonds, $2.29, symbol PGD on Toronto (Shares outstanding: 85.6 million; Market cap: $196.1 million), develops and explores for diamonds in Canada. Right now, it is focusing on its discovery of diamond-bearing kimberlites at its Chidliak property on Baffin Island. (Kimberlites are a type of rock formation that sometimes contains diamonds.) Peregrine shot up from about $0.60 a share in September 2009 to as high as $4.65 that same month. That’s because it announced that it had discovered seven new kimberlites at Chidliak. It also announced results from tests on samples from kimberlites it had previously discovered at Chidliak. The tests showed high grades of diamonds. The largest was a 0.62-carat white diamond. The shares have since moved down to today’s price. Peregrine also operates the 2010 exploration program at Chidliak. Mining giant BHP Billiton (symbol BHP on New York) is funding $11.5 million of the $13.9-million program. BHP is spending a total of $22.3 million on exploration in order to earn…