₪ David Pescod's Late Edition April 2, 2007
CORRIDOR RESOURCES (T-CDH) $8.60 +0.40
CONNACHER OIL & GAS (T-CLL) $3.88 +0.02
RALLY ENERGY (T-RAL) $5.59 +0.10
After a rough start to his vacation, Andy Gustajtis tells us that his two weeks in Costa Rica became a much better trip than it started. Having his car vandalized twice in the first days, having your computer taken with all its important files and not being able to even talk to the people whose hotel you hope to get to, is not the way to start a good vacation, particularly in a country like Costa Rica which is known to be a pleasant place to go and one where being vandalized is not something that frequently occurs.
His trip got a lot better and now that he’s back at work one of his favorite stories is welcoming him back in a big way. Corridor Resources today is hitting new highs. Gustajtis points to the news out on Friday where Corridor issued its annual information form which included the news that its proven reserves and proven plus probable between August 31, 2006 and December 31, 2006 for the Hiram Brook formation and has had a nice change. Currently gross proven reserves have increased from 63 bcf to 67 bcf (not much), but gross proven plus probable reserves have increased from 124 bcf to 182 bcf. Or net to Corridor from 70 bcf to 143 bcf. That’s a big change in figures.
Meanwhile, Gustajtis tells us that the pipeline is almost finished and with his expectations of a cash flow of almost $2.00 per share, he suggests that should support a price target of $10.00 to $15.00.
Being one of the original boosters of Corridor and one of the first to snag onto the significance (the McCully play) he suggests we are two months away from the very important numbers on the Frederick Brook formation and just how productive it could be. He still maintains a rather incredibly aggressive target of almost $50 a share for this story should all three zones including the Dawson Settlement, all run.
As far as predicting what next, Gustajtis leaves us with this thought…“We are still a long way away from $50” which is a target he uses if all three zones do work out.
As far as his three top picks right now, Corridor remains number one, particularly if the three zones do work out and Connacher Oil & Gas is number two. And he surprises us with this comment, “Oil looks like it may be on the verge of actually going higher” and if that’s the case, the oil sands are once again, going to attract an awful lot of interest, particularly south of the border and of course Connacher is one of the oil sands stocks that if that sector catches interest, could go a long way.
We have quoted Andy frequently before as having a target of somewhere between $6.50 and $8.00 by Christmas and that would of course make us happy.
As a third pick he goes with a stock that has done just amazingly well for him over the last year and that’s Rally Energy.
BLACKSTONE VENTURES (V-BLV) $1.27 +0.14
We used to cover Blackstone Ventures quite a bit, but in many ways we had given up on the stock, but obviously that was a mistake! With nickel prices flying back right now, everyone is suddenly looking for “what next”…..
We’ve seen some huge runs in stocks like Rio Narcea (RNG), Canadian Royalties (CZZ) and Hard Creek Nickel (HNC) and today Blackstone Venture announces “significant nickel-sulphide mineralization in its first hole drilled in Sweden at the Lainjaur Project located in the northern part of the Skellefte district.” The hole intersected 5 meters of 2.06% nickel and 0.48% copper.
With nickel prices way up at this level, these days, its attracting some interest and one person wise in the ways of mining put it another way that brings it all home……“With nickel prices these days flirting with $20” he suggests, “this is equivalent to finding over 1 ounce of gold” and “yes” that does bring it into perspective.
NEW CENTURY FINL. (US:NEWC) $0.92 -0.14
It’s not quite the end of an era, but it’s definitely a ‘sign of the times’ as Bloomberg and other financial agencies report today that New Century Financial Corp, one of the biggest players in the sub prime mortgage business in the United States overwhelmed by rising defaults from borrowers and those who bought mortgages despite having poor credit records, filed for bankruptcy.
We had suggested earlier that this was a business that didn’t seem to make sense and how come we weren’t short? Well, on a day like this when a shorter’s dream would come true, it does make you wonder why one didn’t just think about it, but actually acted on it.
Incredibly, New Century had a market value of almost $3.5 billion and it did make a total of almost $6 billion in loans and one wonders how many of them made sense. Oh well, maybe we are back to the times that banks actually loan money to people with good credit.
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