sell recommendation, page-3

Hi extralite,

I like SMY. Fundamental analysis (my first consideration in picking stocks) shows it to be a great stock. I will definitely be in and out of it over the next 12 months.

Technical anaysis is then what I use to buy and sell on the dips and peaks. This is the way I work.

Contrary to your view, I think SMY is a great stock because it is behaving closely to my technical analysis over recent weeks...that said, I wouldn't ever claim to be infallible.

I recall Peter Harold recently saying to me that " the NPV of the project is around $0.70-$1.00 depending on Ni price & currency assumptions and since we are still 7 mths from production there are risks of delays and hence we should be trading at a discount to NPV"

Conservative speaking, I think the project is valued around 86c. Three things that will drive the price closer to $1 are: -

* getting closer to production which is expected in August...so expect a revaluation in say end June / beginning of July 2004

* futher positive results from drilling programme at Copernicus

* successful bidding of the WMC assets

In the meantime, I think SMY will trade within a range which will reward shot-termy traders who use technical analysis to pick the buy/sell points.

All the best