THE CONTRARIAN
BUY ALERT: European American Resources, Inc.
Symbol (EPAR-OTCBB)
Recent Price - $.66
52 Week Range - $.53 - $1.68
Estimated Float - 5.9 Million Shares
Outstanding - 16.2 Million Shares
With oil prices having tripled since December 1998, we should now look for
investments that benefit from higher inflation. Traditionally, gold-mining
stocks
are outstanding performers during these time periods, as people look to hedge
their portfolios to profit from rising commodity prices. We now present a
company
that will not only make money from higher gold prices, but is a legitimate
takeover
candidate as well.
European American Resources (EPAR) has been developing gold properties
in Nevada for many years. Their largest holding is located in the prolific
Battle
Mountain Trend, right between two properties operated by Homestake Mining
(HM-NYSE-7 3/8), the oldest trading company on the NYSE (130 years).
Homestake's cheapest gold mine in the world is Ruby Hill - right next to EPAR'S
Prospect Mountain - with production costs of only $94/ounce in 1999. Since
1864,
Prospect Mountain has already produced 3 million ounces of gold, with only 30f
the volume of the mountain mined so far. No wonder that they recently signed a
joint venture agreement with EPAR, which calls for HM to pay for exploration
costs
that have already started.
Why do we think that EPAR is a takeover candidate? Simply because HM has
bought out 3 of their last 5 joint venture partners in the last three years, at
high prices.
More importantly, Nevada is commonly known as the lowest cost place in the
world to
mine gold, so even if bullion remains stuck at the $300 level, the EPAR
property will
still be very profitable, since estimated costs to mine are under $100/ounce.
However,
if gold drops to $150, most competing mines will close, and we'll also benefit.
Our recommendation is to buy EPAR at prices up to $2, with a longer-term target
price of $5-6. Since drilling is expected to start in a few weeks, expect
results in the
very near future.
To SUBSCRIBE to future announcements or request ADDTIONAL INFORMATION
regarding the European American Resources, Inc, please click on the appropriate
link below
and hit send.
mailto:additional-info@xxxxxxxx?subject=ADDTIONAL-INFORMATION
mailto:more-details@xxxxxxxx?subject=SUBSCRIBE
=================================================================
DISCLAIMER:
The Contrarian has received a fee of shares of European American Resources, Inc.
common stock for the writing and distribution of this report. The Contrarian
and/or
its affiliates currently own shares of EPAR, and may buy or sell shares at any
time after the dissemination of this report. Because the publisher owns this
stock,
there may be a conflict of interest in The Contrarian's statements and
opinions. The
Contrarian is not a registered investment advisor, broker or dealer. Purchase
of this
stock may be considered speculative, and may result in the loss of some or all
of
any investment made.
=================================================================
Please double click on the below link to be excluded from further communication.
mailto:delete65@xxxxxxxxxx?subject=delete
=================================================================
THE CONTRARIAN
< This message was delivered via the Olympus Mailing List >
< For questions, mailto:owner-olympus@xxxxxxxxxxxxxxx >
< Web Page: http://Zuiko.sls.bc.ca/swright/olympuslist.html >
|