₪ David Pescod's Late Edition June 8, 2006
PERU COPPER (T-PCR) $6.12 -1.37
Quite a run in the shares of Peru Copper here lately that
many described as a “relief rally” as Garcia won the
presidential election and incredibly, he’s the one that
is considered “pro-business”. Considering the disaster
he was when he was last president, that’s saying a
lot. Meanwhile, there is scuttlebutt that Southern Copper
Corporation was going to make a bid for the company
and people associated with the company suggested
that maybe they have already submitted what
was a “frivolous” offer. Peru Copper believes that
Southern Copper had no intention of making a legitimate
bid. Either way, this story is getting volatile and
interesting!
INTL FRONTIER RES. (V-IFR) $1.55 -0.06
Analysts blow hot and cold, we know. The guy who
is hot for a year or two, suddenly misses a call or
two and it’s amazing how quickly the public may
desert him. According to Josef Schachter, oil
should be going straight up these days and taking
the index with it. It hasn’t. There are a lot of analysts
looking a little bit sicker with the recent correction
we’ve had, but one report Josef Schachter
has written up, you should definitely be taking a
look at. International Frontier Resources is a company
that we’ve mentioned several times and if and when
they ever get drilling on their properties in the
North Sea and northern Canada, and when this
market correction is finally over with, I suspect you
will be glad to have read this piece. For a copy of
it, e-mail Sandra Wicks at sandra_
wicks@canaccord.com.
TG WORLD ENERGY (V-TGE) $1.20 n/c
GULF SHORES (V-GUL) $0.42 -0.05
Find an exciting play, something that’s going to be
enormous you think or you hope, make sure you get in
early and cheap and then be patient...because there is
going to be a time eventually when they start drilling and
when the vast speculative audience out there finds out
about it, they will probably pay more for it than you did to
get a piece of the action, particularly if the play could be
that big. Emphasis, could be that big!
We feel we have been more than a little patient on two
of our favorite speculative plays. While we have to admit
that the current correction in all the resource sectors has
hurt both TG World Energy and Gulf Shores Resources, we feel
we’ve been more than a little patient with management.
Meanwhile, TG World Energy’s project in Niger which
we had thought originally would be drilled last fall and
then this winter, now we simply don’t know when it’s going
to be drilled. It’s nice to see that they have a back up
play in Alaska, but just when are they going to be drilling
in Niger with the Chinese National Oil Company on a rift
basin play that is truly enormous. Like we say, we will
no longer do the disservice of printing when we think it
will finally be drilled because, would we even believe it?
Same thing with Gulf Shores. They have an interest in
an enormous play in the North Sea (also IFR has a chunk
of it) and for a cheap stock with a potential pay off like
this, well, you simply had to be there. Or did we? We still
don’t know yet again when they are going to be drilling
and once again a sell off in this market has affected them
as well.
Meanwhile, management seems to be off drilling other
plays in Texas and Manitoba, diluting some of their interests.
Are we happy with this? Not at all! There will come
a day we still believe that both of these companies will be
attracting attention.
If you would like to receive the Late Edition, just e-mail Debbie at debbie_lewis@canaccord.com |
