₪ David Pescod's Late Edition May 1, 2006
QUATERRA RESOURCES (V-QTA) $2.19 -0.16
STEALTH VENTURES (V-SLV) $2.20 +0.02
It was a week ago when we were down in Calgary that we
bumped into Bob Swenarchuk. He is one of the veterans, one of
the “grey hairs” that we refer to in the mining business as he has
been around for more than a few cycles. When we say grey hairs,
in Bob’s case, the hair that’s left on top is grey, but then he does
have a good sense of humor.
Currently he is senior vice president/corporate development
and director of Fortune River (FRX), Bravo Ventures (BVG) and
Southern Silver (SSV) and he is also senior vice president with
Quaterra Resources. He was talking about the Quaterra story at the
time and why suddenly, that stock was going to attract attention
and as the chart shows, it has.
What’s the big deal? Tom Patton, the president of the ultrasuccessful
Western Silver (WTC) and his team will be relieved of
their duties there very soon as Glamis Gold completes their take
over of Western Silver.
So Patton and his team will be moving and concentrating on
their efforts on Quaterra, Swenarchuk tells us. He also suggests
that if you are following this story, and their search for uranium in
northern Arizona, go into the Quaterra website and take a look at
their new power-point presentation so you can get right up to
snuff on their most recent adventures.
What intrigued us is another story—the one he had suggested
as his stock pick; the one he could suggest because he has no
conflict about being a director or the like. To show how small the
world is these days, he’s telling us that he became aware of the
Stealth Ventures story (a coal bed methane play in Nova Scotia) to
sources he uses out of Switzerland. It is a small world.
On Stealth Ventures, he suggests that the potential for this coal
bed methane play, given that pipelines exist in the area to take the
gas to the high priced neighborhood of northeastern United States
where there is excellent gas prices, and a pipeline that needs more
gas, he suggests the position is great. Currently he points out
that drilling is ongoing and will the drilling be able to deal with any
technical problems and how much will they be able to deliver?
Obviously extremely bullish on this story, he even gives us his
own targets of $5.00 to $7.00 within six months. Because we interviewed
the president of Stealth, Rob Bell and intend to follow this
story, we are kind of glad to hear someone else following it as
well. We should point out that there are still risks, but when drilling
starts in about 10 days, we suspect this will be one of the more
watched stories out there. Needless to say, we hope Bob’s targets
are correct or frankly, even a fraction of them!
CORRIDOR RESOURCES (T-CDH) $5.95 +0.45
We are currently working on our portfolio that we call “Lottery Tickets”, which
we hope to publish this Friday. When you talk about “Lottery Tickets” you
know how they work…..you buy a lot of them and you don’t expect to cash
many of them in, but if you do cash one in……it should be a nice reward.
Andy Gustajtis the Dominick & Dominick analyst, who got us into Corridor Resources
way back at around $2.00 a share or slightly less, is one of the few
analysts following this story and has high hopes for it and even to the extent
that we are wondering if this company shouldn’t be on our “Lottery Ticket”
list. While the stock has done well of late and with drilling to continue over the
summer, their current small cash flow could dramatically rise this fall when
their pipeline comes on stream to the Maine and New England Pipeline. What
gets people exciting and why you might call it “Lottery Ticket” although it
might not have the downside you usually think of a lottery ticket, is when they
drill the Dawson Settlement Sands, sometime close to Christmas. The suggestion
is that the target is so potentially enormous it could have a very dramatic
affect on Corridor’s stock, but Gustajtis gives it no better than a 1 in 4
change. It is interesting because Corridor’s President Norman Miller is interviewed
on ROB TV today and if you have a few minutes, you might want to
take it in. Go to www.robtv.com and click on watch past videos. Scroll down
to 10:40 AM ET Business Morning with Jim O’Connell. Corridor’s Growth Plan.
– Norman Miller, president and CEO, Corridor Resources for a look see.
NATURAL GAS: $6.68 +0.125
Lots of us are having great days in the resource sector
stocks mainly because of commodity prices going through
the roof. Happy times are here! Who would have thought
three or four months ago we would have seen silver at $14.00
when it seemed to be having trouble getting through $7.00?
Or gold which just awhile ago was struggling to get to $400
and here it is at new highs of 20-some years at over $655.
Speaking of unheard of prices, nickel is rambling, but there is
one commodity that has been a dog and there’s a chance it
could get even worse and that’s natural gas. There are almost
record amounts in inventory and much of that has to do with
no cold weather this past winter. One of its big uses is for
heating in winter and cooling in summer and already oil and
gas companies are starting to cut back their budget for gas
exploration with the most obvious being Encana, slashing
their budget by 1/2 billion dollars. But the price natural gas is
currently at is particularly ugly because in the oil and gas
patch where it’s so busy and tough to find qualified men and
equipment for much of the explorations, and rig rates and
costs in general are through the roof, this price of gas is not
good at all. So do you know if the petroleum junior you own
is gas or oil? Are those people expecting hurricanes or just
wishing and hoping…..
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