November 15, 1996

American Power Conversion (APCC on NASDAQ), West Kingston, RI, tel:(401) 789-5735, Price Nov. 15/96: $24.25, 52 week range: $25.50-8. First mentioned at $12 on Oct 15/95, and more recently on Aug 15/96 at $12.25. Company produced record 3Q earnings of $0.30/sh vs $0.18. APCC is the world leader in the design, manufacture & marketing of power protection equipment including surge suppressors & uninterruptible power supplies. Earnings for the year are now on track to attain $1.10/sh. The shares, at least over the short term, are now approaching full value and should be viewed now as a long term hold.

Birim Goldfields Inc. (BIRM on CDN-OTC), Montreal, QC. tel:(514) 393-8611. Price Nov.15/96: $2.60, 52 week range: $4.10-0.73. First mentioned at $0.80 on Nov 15/95. The company has received conditional approval to have its shares listed on the Toronto Stock Exchange. Furthermore, Birim has completed a private placement of 3 million special warrants at $2.20/unit. The $6.6 million will be applied to the current drill program on the Akrokeri gold property and to the acquisition and exploration of other properties in Ghana.

Bonus Resource Services Corp (BOU on TSE & VSE), Calgary,AB, tel: (403) 263-6777, price Nov. 15/96: $2.60, 52 week range: $3.00-0.25. First mentioned at $0.76 on May 15/96. Bonus has acquired another company which owns 4 workover rigs. This brings the company's oil servicing fleet to to 57 workover and swabbing rigs. Meanwhile, Bonus reported September Q earnings of $0.03 vs 0.01 and cash flow of $0.07 vs 0.04/sh. The company appears to be still on a growth mode, although in the short term the share price appears to represent full value.

California Microwave, Inc. (CMIC on NASDAQ), Redwood City, CA, tel:(415) 596-9000, price Nov.15/96: $13.75, 52 week range:$23.50-12. First mentioned at $15 on Jan 15/96. The first quarter of fiscal 1997 produced a loss of $0.12/sh vs a profit of $0.31 a year ago. While new orders in wireless comunications increased they were too late to be shipped in the 1Q. Sales of satellite communications systems were lower than planned. Combined, these 2 factors created factory over capacity and associated expense levels put pressure on margins. Second quarter performance should be better. Co. is the number one US supplier of telecommunications satellite earth stations and microwave radios used in wireless communications.

Cambior Inc. (CBJ on TSE, ME and Amex) Montreal QC Tel: (514) 878-3166. Price November 15/96: $21.05 52 week range: $22.25-14.15. Mentioned at $13.75 on Oct 15/95. Company in the September 3Q produced 145,000 ounces of gold, 18,800 tons of zinc and 2,600 tons of copper. This produced cash flow of $21.9 million ($0.36/sh) on revenues of $91.7 million. Cambior has important base metal and gold projects nearing production decision in Suriname, Argentina, Peru, Mexico and French Guiana. With a $124 million cash position, the co. is well financed for growth.

Cinram Ltd. (CRW on TSE $ ME, CNRMF on NASDAQ) Scarborough ON. Tel:(416)298-8190. Price November 15/96: $33.25 52 week range:$34.00-21.50. Mentioned at $19 on Oct 15/95. The company is raising $78 million through a 2.5 million special warrant offering at $31.50/wt. This will bring s.o.s to 26.5 million. Cinram should have a good 2nd half for 1996, since the new US plant should double CD volume and most of the summer movies will be released on video prior to Xmas. Sales for 1996 of $370 million would then compare to $270 million 1n 1995. The shares could trade at $38 in relation to potential earnings of $1.65/sh this year & $1.95 in 1997.

Ensign Resource Services Group (ESI on TSE) Calgary AB Tel:(403) 262-1361. Price Nov 15/96: $22.50 52 week range:$23.00-4.55. First mentioned at $8.50 on Feb 15/96. Ensign Drilling acquired the Cndn oil & gas drilling assets of Simmons Group bringing its Canadian fleet to 86 rigs. Its US division, Caza Drilling, acquired the US oil & gas drilling assets of Lynx Energy which consists of 14 drilling rigs. This brings the total to 46, the number of rigs operating in the Rocky Mountain area of the US. In addition, Ensign operates a fleet of 81 well servicing rigs in Western Canada. The stock price has reached the level that this newletter had initially set, however with the additional acquisitions, hence the larger base, and with a healthy industry outlook, Ensign can be held for the longer term.

Freewest Resources Canada Inc. (FWR on TSE & ME), Montreal, QC, tel: (514) 878-3551, price Nov 15/96: $1.25, 52 week range: $1.65-0.55. The company has come up with some promising assay results from its drilling program on a gold property in Matachewan, Ontario with partner Detector Resources. Elsewhere, as a member of an exploration syndicate, Freewest participated in drilling one near surface discovery of good grade gold in Northwestern Quebec. This active exploration company will be involved in further exploration drilling before year end in such places as Botswana, Mexico, Ontario and Quebec. Stock price appears undervalued with respect to these good exploration bets.

iStar Internet Inc. (WWW on TSE) Ottawa On Tel:(613) 780-2200 Price Nov 15/96: $4.95 52 week range:$22-3.40. Mentioned on Jan 15/96 at $11.50 as being fully priced, but suggested as a possible buy at $4.80 on July 15/96. The company, first of all began retrenching their cost structure following acquisitions of several internet service providers. These made WWW Canada's largest ISP with 60,000 customers. The company has since concentrated on intranet services and has made strategic alliances with important Canadian companies. Some of these are with AT&T Canada Long Distance Services, three leading Canadian banks (Scotia, Toronto Dominion & National Bank), Microsoft, Canada Post and CyberSensations Cafe. Furthermore, Bank of Nova Scotia invested $10 million in equity to earn almost a 10% interest. Finally, the company raised $15.5 million in equity at $5.35/sh along with warrants at $6.75. Bank of Nova Scotia subscribed to an additional $1.3 million on the same terms in order to maintain its 9.9% interest. Although profits are at least a year away, iStar will be a prominent factor on the interNet scene in Canada.

Mark IV Industries, Inc. (IV on NYSE) Amherst, NY, tel: (716)689-4972. Price Nov. 15/96: $21.75, 52 week price range:$24.12-16.75. First mentioned July 25/96 at $22.75. The company has decided to take writedowns of $66 million in both of its operating areas, industrial and automotive. This will involve 12 locations and eliminating 1000 jobs, or 6% of its work force. The company believes that this will realize pre-tax savings of $40 to 45 million a year, or $0.38 to 0.43/sh after taxes. IV feels that earnings for fiscal 1997 will meet analysts expectations of $1.65 to $1.70/sh. This newsletter will drop following the company until the dust settles.

Murgor Resources Inc. (MUG on ME), Montreal,QC, tel (514) 878-4216, price Nov 15/96: $0.71, 52 week range: $1.48-0.52). First mentioned at $0.79 on Aug 15/96. The company has entered into a transaction whereby Teck Corporation can earn a 51% interest in MUG's Barry gold prospect in NW Quebec by spending $4.5 million in exploration over the next 4 years and by subscribing to Murgor shares for $500,000 in each of 5 annual installments. Furthermore, MUG will retain for its own account the right to remove as a bulk sample the surface exposure which may contain 150,000 tons. This latter exposure could contain 30,000 Oz of gold. This transaction would pave the way for Murgor to accelerate developments on 3 other projects. One of these, the Benoit Project, also in NW Quebec, a partially defined gold prospect which Murgor is earning a 50% interest from Freewest Resources Canada Inc. is slated for drilling over the next month. The shares of MUG appear undervalued in light of its active exploration program.

NQL Drilling Tools Inc. (NQL.A on TSE), Nisku, AB, tel: (403) 955-8828. price Nov 15/96: $4.25, 52 week range: $4.50-2.50. First mentioned at $3.20 on May 15/96. The company recently released results for its 4th Q and for the year ended Aug 31/96. For the quarter, revenues of $8.8 million were up 39% and cash flow of $2 million was up 55%. Cash flow of 19 cents/sh compared with 12 cents. For the year, revenues of $29.8 million were up 22% and cashflow of $6.9 million was up 13%. Cash flow of $0.64/sh for the year was based on 10.8 million shs. outstanding. The company expects to penetrate further markets for their oil & gas downhole tools as a result of new centers in Venezuela, The Netherlands and Odessa, Texas. The stock continues to look like one for growth.

Newcourt Credit Group Inc (NCT on TSE) Toronto ON Tel:(416) 594-2400. Price Nov 15/96: $42.75 52 week price range: $42.90-18.75 Mentioned first at $19.25 on Nov 17/96. The company raised $120 million on the market by issuing 3.3 million shs at $36.50. This brings the number of shs. outstanding to 30 million. Newcourt originated new asset-based financings of $4.4 billion during the first 9 months of 1996. It has increased its portfolio of owned and managed finance assets from $4.3 billion at Dec 31/95 to $6.3 billion at Sept 30/96. The company has now become North America's 4th largest independant non-bank lender. With its increased asset base & low interest rate scenario, the company should continue to show increasing profit.

Nobility Homes Inc (NOBH on NASDAQ) Ocala FL Tel 1-800-476-6624. Price Nov 15/96: $12.75 52 week range: $16-7.35. Mentioned at $6.50 (adjusted for two 3 for 2 splits) on Oct 15/95. Sales for the year ended Oct 31/96 should be about $37 million and net profit about 82 cents/sh on 2.9 million shs. outstanding, following another 3 for 2 stock split on Aug 16/96. Company now operates 15 modular home retail sales centers in Florida vs 10 last year. NOBH should continue to grow, particularily in this low interest rate atmosphere.

Normabec Mining Resources Ltd. (NMB on ME) Montreal Qc Tel (514) 861-6679 Price: Nov 15/96: $1.34 52 week range:$2.01-0.40. Mentioned at $1.50 on May 15/96, the company has acquired exploration rights to a large mining area of NW Argentina, near the border to Chile. This covers 613 sq km and is between 3 gold mines (Refugio, Marte & La Coipa) and in proximity to two major base metal projects under development. Meanwhile, Normabec will commence drilling over the next month its gold properties in Chile, wher it feels a heap-leaching operation is feasible. NMB is an emerging junior well worth keeping an eye on.

Planvest Capital Corp (PLV on TSE) Vancouver BC Tel (604) 685-6288. Price:Nov 15/96: $1.90 52 week range:$1.90-1.00. Mentioned first at $1.07 on Jan 15/96. The company has recently acquired Victoria Asset Management Group, a mutual fund dealer in Victoria, BC. Its unit, brokerage C M Oliver, opened an office in the Kitchener-Waterloo, Ontario area. Planvest is raising equity capital of $2.55 million by selling 1.7 million shs to its employees. This addition to the capital base should help continue the growth curve. The stock still appears undervalued.


Rainbow Technologies Inc (RNBO on NASDAQ). Irvine, CA tel: (714) 450-7350, Price : Nov 15/96: $19, 52 week range:$ 25.50-14.62. First mentioned at $17 on July 15/96. Rainbow, the world leader in softwear protection, reported Sept 3Q revenues increased 11% to $17.6 million and eps of $0.33 vs 0.32. For the 9 mos, revenues of $55.7 million were up 16% and earnings were $1.03 vs 0.89. Lower government orders contributed to the flat quarter. RNBO acquired in October its largest US competitor in the software protection business, Software Security Inc. The co has established Internet Security Group designed to improve performance of electronic commerce servers on the Internet. The shares of RNBO can be held for long term growth.

Zoom Telephonics Inc (ZOOM on NASDAQ) Boston MA Tel: (617) 423-1072. Price Nov 15/96:$9.87 52 week range:$ 27-7.50 Mentioned at $17 on Nov 17/95 and at $10 on July 15/96. Strong competition in fax modems has led to lower prices and reduced operating margins. Sales in the Sept 3Q were down down 15% to $20 million and net income was $0.03/sh vs 0.25. For the 9 months, sales were up 22% to $74.4 million and earnings were $0.38/sh vs $0.62. Although the company continues to come out with new products, it may take some time to re-establish gross margins back to the 25% level. The stock must now be viewed as long term.