₪ David Pescod's Late Edition May 2, 2006
SELKIRK METALS (V-SLK) $1.00 +0.05
We are working on our “Lottery Ticket” feature that hopefully
goes this Friday, as we talk to some of our favorite analysts, market
gurus and observers and ask those that have been so successful in
the past, are there any junior exploration plays out there that you
see that could be five or ten baggers over the next while? It is called
a “Lottery Ticket” issue for an obvious reason, as usually these
plays, if there is a high reward it entails EXTREMELY HIGH RISK!
One source that you would expect to be contributing to an idea
like this, would be the super successful Coffin Brothers, of the Hard
Rock Analyst, that have come up with such enormous winners such
as Virginia Gold Mines (VIA), up by a factor of 10 and Bear Creek
(BCM), a ten-bagger.
When we corner David Coffin today to see if there is any potential
“lottery tickets” in the mining sector, he suggests there has already
been huge moves in many of the winners and many of the others
have already moved with the market in general. So to find five and
10 baggers, he suggests it is going to be really tough. Now he suggests,
given the general market rise, you are trying to find double
and triples. Of all the stories out there right now, though, Selkirk Metals
is the one story he’s thinking might be able to do the best in the
sector and always in the mining exploration sector it is depended
upon success………..
CROSSHAIR EXPL. (V-CXX) $1.38 +0.11
For those following the junior uranium explorers, Crosshair
Exploration might be one to be watching over the next couple of
days as assays are expected on their Moran Lake Project in
Labrador. Needless to say, with the small amount of reserves
they currently have worked up, if they are able to add to it then
suddenly it gets interesting. The company is well funded with
about $13 million in the till and they will have two rigs drilling
much of the summer as they hope to do 20,000 meters and that
could be expanded as they search to add a third rig. Crosshair
and Altius are two of the big land holders in the Labrador exploration
play and Crosshair’s property looks like its poly-metallic
as well, coming up with some interesting samples of copper,
vanadium and silver. But the rigs will show whether there is
enough of the good stuff there that Shell had drilled decades
ago when uranium last created interest. One little concern to us
though is the ten million warrants currently overhanging the
Crosshair market. Much of that came from financing done
some time ago, but still, that’s more than a little bit of an overhang.
But this is a story more than a few analysts are watching
with some hope.
S&P/TSX COMPOSITE INDEX: 12,285.99 +51.43
There are some analysts that you just have to follow, because
they are usually right and then you learn that there are
others that are always interesting, but it seems like they are
never right!
One guy that we have followed for sometime now has
been CIBC’s Jeffrey Rubin, who is currently called the chief
strategist and chief economist at CIBC World Markets. The
reason we started following him a while ago, was 15 years
ago when Toronto was going through its real estate boom,
where things got absolutely stupid, Rubin was the guy who
stood up and said, “that the real estate market was out of
control and prices would retract 25%!” Needless to say, to
stand up and say that, made him an instant ogre to anyone
who owned real estate in the area. But, needless to say…..he
was also right!
So what is he suggesting now? He is suggesting that the
TSX Index could see up to 13,600 this year as he raises his
target by 400 points and also he is looking for the Index to hit
15,000 in 2007.
For those of us who suggest that nothing ever goes
straight up and that we are due for a correction, this might
give us some comfort that down the road (if there is corrections)
that we’ll still see higher highs.
In the Financial Post today, Rubin’s argument goes something
like this: “A 25% rise in oil imports from last year and
booming vehicle sales confirm that China’s energy demand
growth is back in overdrive….” He also points out that “the
world’s conventional crude oil production has not grown
since 2003….” Also in the article he suggests that “it could
force the price of crude up to an average of US$77 a barrel in
the second half of this year and US$90 a barrel in 2007.”
Rubin is also extremely bullish on the mining sector and is
suggesting that “even if base metal prices don’t climb even
higher, but simply stay where they are, these are still much
higher prices then today’s stock valuations are given credit
for.”
It’s a must read column for those who wonder when this
cycle ends. If you would like to receive this must read article
email Sandra at sandra_wicks@canaccord.com. |
