# Stornoway Diamond Corporation (TSE:SWY)



## SpIcEz (Jan 8, 2013)

Hi guys,

I need some info about mining stocks.

I bought in to SWY at 0.76$ because:

- I have many mining companies as clients and had knowledge that this project was going forward;
- Quebec governement is building half the road to get there (150km) and that has already started;
- Deals are made with the Cree;
- They have their certificate of authorisation;
- Other diamond mines in Canada are nearing EOL;
- Construction is slated to begin summer 2013;
- Diamonds are currently low, and I have a feeling they will be higher by the time production being (2016).

Stock now is at 0.85$, its been going down from 0.94 for the last week.

1. What do you guys think of SWY?
2. To start construction of the mine, they will need capital. The current market cap is about 140m. They need 700m or about to build the mine.
Do they get loans for that, or will they issue lots of new stocks to which will dilute my shares?

Should I sell and wait for stock value to drop and then re-buy?
Should I just hold on to my stocks?

http://stornowaydiamonds.com/investor_relations/fact_sheet/

My plan is to go long. However, if the stock takes a 30 or 40 cent nose dive due to emmissions of new stocks, Id rather take my 800$ or so gains and buy back later.

Oh, one more thing. I'm holding this in my TFSA, so I cant sell and rebuy a few days later (I think.)

Thanks for any insight.


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## cdnceo (Apr 3, 2012)

curious as to why you can't sell and rebuy?


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## SpIcEz (Jan 8, 2013)

From what I read, we cant short stocks in registered accounts. .


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## SpIcEz (Jan 8, 2013)

Anyone have any insight to help me make a decision?
Especially concerning financing for construction of the mine facilities...

Thanks.


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## cdnceo (Apr 3, 2012)

SpIcEz said:


> From what I read, we cant short stocks in registered accounts. .


right, but you own the stock.. you sell.. you rebuy... that's not short selling.


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## SpIcEz (Jan 8, 2013)

Im probably misunderstood.

I thought you couldnt sell a stock in a TFSA and rebuy it within a set time, like 30 days for examples.

If I'm wrong, that is wonderfull.


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## daddybigbucks (Jan 30, 2011)

SpIcEz said:


> Anyone have any insight to help me make a decision?
> Especially concerning financing for construction of the mine facilities...
> 
> Thanks.


I dabbled with diamonds before but its a garbage market. I think there are so many diamonds in Africa that they ekk it out slowly to not depress the market.
its a penny stock gamble that would not be worth the risk. just my opinion.


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## cdnceo (Apr 3, 2012)

SpIcEz said:


> Im probably misunderstood.
> 
> I thought you couldnt sell a stock in a TFSA and rebuy it within a set time, like 30 days for examples.
> 
> If I'm wrong, that is wonderfull.


you can! i day trade in both tfsa and rrsp.

but you're right in that you cant short sell in tfsa since there is no margin.


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