COATS Trading Features (October 10, 1988)

Hectic over-the-counter trading in a non-mining issue startled the COATS market this week, with Air Canada’s costly $12 million public debut shaking the lethargy.

Floated at $8 a share with a nudge from an election-conscious federal government, it saw no less than 3.6 million shares change hands on the first pre-exchange trading day between $8.50 and $8.75 and continued to show strength and high activity in subsequent sessions. “There were 15 market makers on this issue, unique for COATS,” said veteran unlisted trader Michael Shunock of W. D. Latimer Co. Ltd. “We’ve never seen anything like it.”

But mining issues remained sluggish, although there was some interest in Langis Silver at the 65 level. Sinking of a new shaft there has been completed, with lateral work getting under way to develop a brand new silver discovery under the aegis of Agnico-Eagle Mines.

There was some buying in Chance Mining in the 37 -40 range, with interest focusing on drilling plans by Falconbridge on some key Chance claims closeby the big Kidd Creek mine. Controlled by Conwest, Chance has close to $1 million cash in its treasury. Another Conwest-controlled unlisted company that bears watching is Hucamp Mines, where a deep underground drill program is under way by Noranda on Hucamp’s ground tying on to the Geco mine at Manitouwadge (see story). It is quoted 40 bid–60 asked, its lowest level in years. .N14