₪ David Pescod's Late Edition November 30, 2007
CANDAX ENERGY (T-CAX) $0.86 +0.02
ARISE TECHNOLOGIES (V-APV) $2.40 +0.11
He’s our favorite economist and usually when you think of economists, you think of rather dull chaps that can get into heated debates about whether the GDP is up by 1.2% or 1.1%. Not Jeffrey Rubin, the Chief Economist with CIBC World Markets and also Top Market Strategist with the same.
He’s right out front making prognostications over the last few decades that we followed him that attract a lot of attention and are usually right. We started following him a few decades ago when he boldly and bravely and possibly foolishly predicted that real estate in the Toronto area was going to drop by 25%. You can imagine the hostility that attracted. And of course he was right. He also was one of the earliest economists to predict $100.00 oil. He was on BNN on Wednesday (go to www.bnn.ca and watch past videos, November 28. SqueezePlay at 5:00 ET to listen in) and he talked about efficiencies related to the energy business. At a time like this when you need a little hand-holding about the oil and gas business, which has had (as far as we’re concerned) an undeserved slump, just a few statements from him suffices excellent handholding. When asked about whether we will see an interest rate cut next week out of the United States, he suggests, “Well, it might happen, but I’ll predict six months from now, we won’t be talking about sub-prime mortgages, but we will be talking about energy.” (Now how many economists do you know who can wear a pink tie as a fashion statement and pull it off?)
Meanwhile, if you have some time, there are two brief shows worth seeing on BNN over the past week. One was an interview with Michael Wood, who is CEO of Candax Energy and gave an interesting account of the company, which we feel in the next four to six months, will finally be having an awful lot to talk about. (Go to www.bnn.ca, watch past videos. Tuesday, November 27 at 8:30 AM)
Also of significance, Ian MacLellan, President and CEO with Arise Technologies makes an appearance and Arise Technologies is one of the top stock picks of Andy Gustajtis. (Go to www.bnn.ca, watch past videos from Wednesday, November 28 at 11:30 AM) Also worth viewing.
BANKERS PETROLEUM (T-BNK) $0.85 n/c
He runs one of the top performing funds in the country, the Sprott Growth Fund, currently up roughly 49% on the year. No wonder Peter Hodson who runs the fund, is such a popular guy.
But we go to him today because of comments we noticed from several sources regarding the interview we did with Abby Badwi, recently on board with Bankers Petroleum and concerns about stock roll backs. Usually, stock roll backs have in the past, been negative for a stock performance, but this could be quite different.
We go to Hodson who likes the Bankers story, because we hear that there are simply lots of institutions out there that cannot buy a cheap stock and that a roll back would actually be good for them. Hodson suggests, some large investment funds cannot buy cheap stocks, some insurance funds and pension funds that simply are not allowed to buy stocks of a cheaper price. Even in some assumable sophisticated institutions he suggests, might not be able to buy an $0.85 stock as cheaper stocks somehow are considered to be higher risk. After a roll back, these institutions could/would be buyers!
As far as his thoughts on Bankers Petroleum after doing so well on Rally Energy, he knows the management team quite well and he wants to bet on them again. “We might lose a bit on consolidation” he says, “but we are looking for doubles, triples and quadruples down the road so we don’t mind paying what it’s currently trading at.”
The Hodson interview should be going out late next week and yes, I think you will find it of interest.
GLOBESTAR MINING (T-GMI) $1.73 +0.13
Globestar Mining had been one of our more favorite mining stories, but over the last few weeks and months (with the correction in resources) it’s fared like many others...not that well.
But today the company announces their resource expectations from their Cumpie Hill nickel saprolite project in the Dominican Republic and the results suggest that based on a 1% nickel cutoff, the area has an indicated resource of 3.0 million tonnes grading 1.49% nickel and an inferred resource of 2.5 million tonnes.
“This is better than our expectations” writes Wendell Zerb of Canaccord Adams, who currently has a target of $2.70. With additional operations and drilling in the area, we are hoping that his expectations are on the low side. For a copy of his report, e-mail Debbie at Debbie_lewis@canaccord.com.
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