₪ David Pescod's Late Edition April 12, 2006
NOVA URANIUM (V-NUC) $3.25 -0.24
WOLFDEN RESOURCES (T-WLF) $3.79 +0.15
We caught up with Don Moore today and I guess the
news on Nova Uranium is one of those good news/bad news
stories. Looks like the drilling so far on the Nova B zone
has gone very well as Moore suggests they are currently
drilling on holes 12 and 13 meaning very shortly they will be
finished work on the Nova B zone and heading over to the
Nova A. That’s the good news.
The bad news is that they’ve had problems. Weeks ago,
it was a huge blanket of snow that slowed everything down
to a crawl and delayed them by weeks. Now, while they are
up and drilling it looks like they are having trouble with
saws and people qualified to work on the core. It looks like
the first person they had, injured himself off the job and it
took a while to hire a second qualified skilled person and
when he came on staff, they found out the saws weren’t of
the needed variety.
Now that they are up and running and a second set of
saws should be operational shortly to help catch up, this all
means that they are still two and a half weeks behind schedule.
For those of us who have hopes fostered by the Coffin
Brothers talk of a potential $10.00 stock here, delays cause
nervousness. Moore fully expects to have the results of the
first three holes, out in about two and a half weeks
time...something we’ve heard before.
We ask veteran market observer, Moore, what he thinks
of the last couple of days in the market...is this the start of a
correction or heaven forbid something worse? “I don’t think
so” Moore says, “I think it’s more of a little bit of a year end
blues. Some are selling for tax reasons, some are facing
year end at their brokers”. He doesn’t think it’s anything
significant. If anything, he suggests there is another run in
the gold stocks coming.
As far as his favorite stories right now (other than his
own) Wolfden Resources is one of the few that he thinks has
the potential for a double and looks forward to the company
spinning off some of its assets suggesting that the company
is probably worth more split up as two than its current one.
Either way Moore suggests, “it’s simply not getting the
respect in the market place that it deserves”.
HABANERO RESOURCES (V-HAO) $1.25 -0.09
If you play the market it’s been difficult for you not to have been
spammed by Habanero Resources, a junior oil and gas company that’s long
on promotion, long on insider stock selling and very short on actual oil
and gas production. We thought that we would re-print a comment by
Gord Chan, who writes Canaccord’s Morning Coffee, comment from yesterday:
"In tropical and sub-tropical regions, the Habanero, like other chilies, will
produce year round. As long as conditions are favourable, the plant will
set fruit continuously." – from Wikipedia. We recently pointed out that
more established and senior oil and gas operators never start their news
release stating "XYZ is pleased to announce..." but simply say "XYZ announces..."
Habanero has outdone itself as its latest releases started off,
"Habanero is extremely pleased to announce..." The company announced
that it acquired three new Athabasca oil sands leases. Apparently, this
"extremely pleasing" news release is not good enough to convince the
CEO to stop selling his stock, though. According to insider filings on
INK, he sold 10,000 shares on March 30, 23,000 shares on March 29,
30,000 shares on March 28, and 20,000 shares on March 27. He has a lot
of 10-cent paper that he was selling as low as 17 cents a year ago. We
counted 107 separate insider sales over the past year (many of these were
on the same day but you get the idea). But, as the saying goes, if you are
pleased to sell it at 17 cents you should be extremely pleased to be selling
at $1.25.”
CHARIOT RESOURCES (T-CHD) $0.58 +0.14
Little doubt what the story of the day was in the junior mining sector
today—Chariot Resources, announces an unbelievable hole on their
Marcona copper play that came in at 100 meters grading just over 5%
copper. Unbelievable! That’s the good news. The bad news….well, if
you are worried about politics, it’s in Peru and the other matter is the
disease “printing press-itis”. Chariot has just shy of 300 million
shares outstanding, so it’s not as cheap as it looks. Huge volume
today of almost 42 million shares. People are definitely following junior
mining.
Disclosure: Wolfden Resources : Canaccord Capital covers this stock and has a Speculative Buy rating on it. (Speculative buy: Stocks bear
significantly higher risk that typically cannot be valued by normal fundamental criteria. Investments in the stock may result in material loss.)
Chariot Resources : Canaccord Capital covers this stock and has a Hold rating on it. (Hold: The stock is expected to generate risk-adjusted
returns of 0-10% during the next 12 months.)
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