March 15, 1996

Of interest is that since these pages began on Internet format on August 28, 1995, three of the 30 small-cap (mid-cap) companies mentioned have moved on to more senior or visible exchanges : Cinram Ltd. CRW on ME and TSE to CNRMF on NASDAQ, Geographics Inc. from GGI on TSE & GGIT on OTC-BB to GGIT on NASDAQ and Royal Plastics Group from RYG on TSE & ME to RYG on the NYSE. It seems to be a question of time before Newcourt Credit Group will also graduate to, possibly, the Big Board. This investment newsletter has as one of its goals to highlight such companies that may not yet be household names.


Ballistic Energy Corporation (BAL on the TSE) Calgary, Alberta (403) 290-0777 mentioned on Feb 15 at $4.60 and now trading at $4.10 announce good results for the fiscal year ended Dec.31/95. Cash flow at $24.5 million on revenues of $45 million was up 83% from $13.5 million. On a per share basis the increas is less dramatic due to the larger am't. of shs. outstanding, $1.29 vs. $1.12. Year end exit production was 6825 boe/d compared to 3583 in the 1994 quarter. O&G reserves incresed from 13.5 million boe to 17.9. BAL expects to concentrate in 1996 developing its large land base of 389 thousand net acres. A fair stock trading level could be in the $6 range, near term and $7-8, long term.

Birim Goldfields Inc.(BIRM on CDN-OTC) Montreal (514)393-8611 announced both the discovery of new gold geocheminal anomalies as well as additional drill results from the Dunkwa gold property in Ghana. Assay results from ddh.'s 11 to 14 should be available by the end of March and could make for some interesting reading. BIRM stock first mentioned on these pages on Nov 15/95 at $0.80 currently trade at $2.75. Listing on a more senior exchange would certainly add more visibility.

Cambior Inc.( CBJ on ME, TSE and Amex) Montreal (514)878-3166 first mentiones in Picks on Oct.15/95 at $13.75 now trade at $18.25, down from a recent high of 22 is involved on various fronts in both gold and base metal mining and exploration. A recent study indicates that their La Granga copper project in Peru has reserves of 1.3 billion tons grading 0.61% copper. Construction of the open pit mine could begin in 1998 at a milling rate of 90,000 tonnes/day. This major added dimension to CBJ appears to leave the stock at an undervalued level.

Cinram Ltd (CRW on the ME & TSE, CNRMF on NASDAQ) Scarborough ON tel:(416)298-8190 first mentioned in DDIN on Oct.15/95 at $19 is currently trading at $23.50. The co. recently announced results for 1995 at revenues of $270.1 million vs. $144.8 million, and net earnings of $ 23 million, or $1.02/sh, against $18million, or $0.85/sh . CRW has grown to become one of the world's largest independant manufacturers of multimedia products, with facilities in Canada, the US, Europe and Latin America. The stock down from a recent high of $27 could be held for a near term target of $30.

Franc-Or Resources Corporation (FOR on TSE) Montreal (514)861-5323, first mentioned at $0.55 on Aug.28/95 currently trades at $1.04 after having recently traded as high as $1.70. The company has recently entered into a joint venture agrement on the St.Pierre project in French Guiana with Homestake Mining. On their principal property, the Haute Mana, always in French Guiana, FOR has announced the discovery of a third and fourth gold discovery. The recent diamond discovery by Golden Star, 37 km. away, has added a new dimension to the stock. One of the few publicly-traded companies in the area, Francor could attract further attention as a result of this play. However, the focus on gold exploration alone allows FOR stock the potential of being a big stock market winner.

Golden Star Resources Ltd. ( GSC on TSE and GSR on Amex ) Denver (303)830-9000 first mentioned in this newsletter at $7 on Aug.28/95 now trades at $20. The recent diamond discovery in French Guiana is only one of many serious, mainly gold, exploration involvements occupying GSC, this in addition to its 30% interest in the 300,000Oz/yr Omai gold mine. A recent equity financing allows the company to persue these efforts in South America And Western Africa. The stock could be held for further gain.

Newcourt Credit Group Inc. (NCT on TSE, ME) Toronto, ON (416)981-9500 first mentioned on Feb 15 when trading at 24, currently trades at $26.50 The company recently opened a New York operation with staff formerly from Chemocal Bank's Global Investment Banking Group. This will accererate the co's penetration of the international and North American markets for secured structured financing. This is on top of a recent opening of a London office to tackle the European market. NCT looks like a long term growth stock gaining popularity amongst institutional funds.

Procoloro Resources Inc (PCH on the ME) Val d'Or, Que. (819)874-6200 first mentioned at $1.05 on August 28/95 is currently trading at $2.95, in spite of the fact there has been no news in the last month concerning their gold exploration activities in Colombia, South America. It may be that the co. is planning to bring in another partner on the promising Arenosa property. With no further information, the stock at this stage must be considered speculative.

Transat A.T.Inc (TRZ on TSE and ME), Montreal (514)476-1011 ext 3028, first mentioned in this newsletter at $10.50 on Feb.15 currently trades at $13.50. The co. is acquiring a significant ownership, which could lead to control, of Look Voyages SA, France's second largest tour operator. Look's annual sales are about $500 million and should benefit TRZ's existing subsidiary Air Transat (France). With an earnings outlook of $2.25/sh for 1996 and $2.75 for 1997, Transat stock could be held for a price target in the mid twenties, over the longer term and $17 for the shorter term.