Stockprowler.com

"Lehman upgraded several chip makers, Bears Stearns issued positive statements on semi- equipment and Goldman Sachs said..." Unbelievable! With accounting irregularities and outright fraud rampant in corporate America, these Wall Street jokers are still pushing optimism. Why? Could it be they are desperately trying to keep the market afloat so that they can buy time and get out before they/their trading arms short the market into oblivion? These experts have trashed the confidence of the investing public... people have lost substantial chunks of their life savings listening to analyst pronouncements. It is the considered opinion of Stockprowler.com that there is presently a high probability of a stock market collapse the likes of which we have not seen since 1929. We have been urging caution and advising investors to move into gold stocks since February. The danger is very real... we are at the flash point that we alluded to weeks ago. The U.S. Dollar Index (http://tfc-charts.w2d.com/chart/US/92) has fallen through what we believe is a long time critical support level... 108.00. As I write this on Friday morning, I am seeing the index at 106.90 and I truly believe it is only a matter of time before all hell breaks loose...

Keep watching those ECO warrants that we reported on previosly, the leverage here could be tremendous. Also, we continue to have on our radar two non-gold related stocks, QLNX and ALTI... we believe that they are both very speculative, but are cutting edge technology companies that have the potential to eventually return huge rewards to the risk averse investor. As for our last pick CGYC, news is expected soon from the court appointed master regarding a motion filed by Carnegie, the company alleges that J.W. Mike Starr, a senior partner and former director of risk management at Grant Thornton, “willfully, knowingly and intentionally destroyed Carnegie documents with the full understanding that litigation was imminent.” The motion says Starr admitted destroying the documents in a deposition given earlier in July 2001 in Chicago, and that “Starr admitted that he deliberately destroyed the entire Carnegie file, including, among other things, e-mails, communications with Carnegie, and his contemporaneous notes of telephone calls, meetings with Carnegie management and the members of its Audit Committee.”

The trial, which began last November, was suspended four days later pending the outcome of a court-ordered investigation of a discovery violation by Grant Thornton. Grant Thornton's counsel had admitted in open court that a second set of “original work papers had been discovered” and further admitted not producing these files during the discovery process, prompting Judge Kaye A. Allison to suspend the trial and appoint a Special Master Juliet A. Eurich, Esq., a former federal prosecutor to investigate and report back. Upon receipt of that report, the Court will determine the course of further proceedings... CGYC is highly speculative but the reward could be huge... a roll of the dice at 3 cents.

Stockprowler’s pick this week...

Afrikander Lease Limited (Nasdaq OTC Other: AFKDY)

Corporate Web Site: http://www.aflease.com/frameset.htm

Shares Outstanding: 138 million

Market Capitalization: $78.7 million

Closing Price Thursday: $0.57

Afrikander Lease Limited operates an open pit mine in Klerksdorp in the Northwest Province of South Africa. The company produces 40,000 ounces of gold a year by the heap leach process at a cash cost of $165/oz. With recent mining and plant upgrades the company expects to achieve a 50% expansion of production to 70,000 ounces per year. The mine has a production life expectancy of 18 years. In addition, the company owns an old underground gold mine, which has 5 shafts already in existence and containing an estimated 4 million ounces of gold. The company is not at present mining this underground property.

Unbelievably AFKDY is trading at a P/E ratio for 4 based on its prospective earnings for the coming 12 months, assuming a gold price of at least $300/oz. and current rates of exchange.The mine is totally unhedged and has stated that it has no intention of getting involved in any hedging transactions. As a result, 100% of the mine’s production is exposed to future gold price increases. In addition, the company has no debt and has adequate operational cash resources.

It is our opinion that AFKDY is a little known and overlooked stock with the potential to move sharply in price as the price of gold continues to climb against the falling U.S. Dollar. At 57 cents (U.S.) a share this could be the sleeper stock of the year. Stockprowler.com did not receive compensation of any kind from the company or third parties for writing this report. Readers are urged to read the company financial reports and do their own due diligence before investing in this or any other stock.

Good Trading... Stockprowler