Here’s a Diamond-Stock Buy

Article Excerpt

DIAMONDS NORTH RESOURCES $1.47 (Toronto symbol DDN; SI Rating: Start-up) (1-866-802-2010; www.diamondsnorthresources.com; Shares outstanding: 59.0 million; Market cap: $86.7 million) jumped as high as $2.05 recently, after it reported high diamond counts from the Tuktu 1 kimberlite on its 100%-owned Amaruk property in the Pelly Bay Diamond District of Nunavut. A total of 550 diamonds were recovered from an 81.75-kilogram drill-hole sample. Tuktu-1 yielded nearly seven diamonds per kilogram of kimberlite. That’s comparable to the initial results from the top diamondproducing mines in Canada. Here’s a case where we would recommend applying our sell-half rule. That’s when you sell half of a speculative stock such as Diamonds North that doubles in price for you, so you can get back your initial outlay. Despite the share price jump, we still feel that Diamonds North has room to rise. In addition to the potential of the Amaruk property, the company also has a good mix of other diamond projects in various stages of development with…