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This is more thinking out loud than anything. Being Canadian my DH wants more Canadian in his portfolio... so I am trying to evaluate canadian companies.

So what I like about the stock:
They appear to have two moats. On the mine end of the scale - they have one. Diamond mines aren't all that common. :) And they have one... well 40% of one so that is good. On the retail end they seem to have the high end luxury jewelery market... apparently they have been rated the best such thing two years running.

Also I would think that really high end jewelery is relatively recession proof. I mean if you have that much money and are inclined to flaunt it - you'd do that anyways.

The above mine is a relatively good mine and it appears that the quality of the ore is better than what was orignally estimated. (reading between the lines on the annual reports). I like that.

According to CAPS they have good management - but I don't know... I know nothing about the management.
The road into the mine only exists in the winter... what about global warming! Okay - it is a concern - it isn't exactly a deal breaker (not this year anyways) Still it has the potential to have a large effect on operations

Canadian dollars: expenses are CDN and income is US. And have you seen what happened to the CDN dollar (mind you this is a good reason to invest Canadian - my good investments don't lose it with the conversion). And it does not appear that they have much of a plan to mitigate this. There isn't much in the quarterly or annual reports.

They are expanding their debt to expand the number of jewelery boutiques. Okay. I'm not a retail kind of girl. Not as in "never pay retail" more as in "avoid the mall and retail outlets as much as possible." I'm not sure if they are growing too fast. It is definitely on the better side of debt... but I have concerns. More due to my lack of experience than anything.

So on the plus side... shiny diamonds :)
fancy stores to sell shiny diamonds.
shiny diamond mines. (blue rodeo is going through my head)

On the down side:
global warming will have a significant effect on operations - on the other hand it may allow the establishment of a year round road.
debt going upish
return going downish
are they expanding too fast.

Well I don't know... and since you don't have to swing at every pitch... I'm going to let it slide until I learn more about the sorts of things that are concerning me here.

Hey - I think I just analyzed a company! Cool.
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