f'ing AAAARRRRRRRUUUUUU,...in Ecuador,....Pity. If only in Canada :-)
e-mail: debbie_lewis@canaccord.com August 21, 2007 e-mail: david_pescod@canaccord.com
FIRST URANIUM CORP. (T-FIU) $7.50 -0.35
URANIUM ONE INC. (T-UUU) $10.90 -0.50
STRATECO RESOURCES (T-RSC) $1.80 +0.15
It almost looks like it’s getting out of hand. Today according
to Bloomberg, Landesbank Sachsen Girozentrale,
the German state-owned bank based in Leipzig, Germany
announces that they have about 3 billion euros worth of
investments linked to subprime mortgages. And the bank
is looking for a little help.
If little state-owned banks in the middle of nowhere in
Germany have these kind of exposures to the American
mortgage problem, I guess we can count on a few more
weeks before the world sorts this paper mess out.
Analyst Dennis Gartman has done some work, coming
up with some charts showing that over the next several
months, there are an awful lot of Americans whose mortgages
were originally signed with teaser—or very low
mortgage rates that when they come due, will be due at
much higher rates. One assumes that this mortgage mess
in the States isn’t going to be over for a while.
Having said all this, booming economies in Asia still
need stuff like nickel, lead, zinc, uranium or you-name-it.
One commodity that’s really had a rip-roaring last three
to four years has been uranium that in the last few weeks
has settled back as most international utilities have all the
uranium they need up until the end of the quarter, which is
October 1st. Then uranium prices might start getting interesting
again.
In the meantime however, they are having a two-for-one
sale in the senior uranium stocks and in the junior sector,
it’s a three if not four-for-one sale in the uranium's.
We mention Kevin MacLean of Sentry Select fame who
runs several mining funds and had been one of the top
stock pickers in the country until the recent malaise. A lot
of good reputations have had a tough time in the last couple
of weeks, but we hope Kevin’s crystal ball will continue
with its winning ways down the road.
When we ask him in the uranium sector, what would be
his top three picks—he picks First Uranium, Uranium One
and Strateco and he says he would pick them in that order
and for his funds, he already owns them.
As far as the gold's which he is bullish on, he is still
picking up some of his favorites, so we will hear his favorite
picks further down the road.
First Uranium Corp.
Uranium One Inc.
Strateco Resources
www.firsturanium.com
www.uranium1.com
www.stratecoinc.com
Page 2 David Pescod 780-408-1750 Debbie Lewis 780-408-1748
NORTHERN PERU COPPER (T-NOC $7.25 -0.30
CHARIOT RESOURCES (T-CHD) $0.86 -0.04
CORRIENTE RESOURCES (T-CTQ) $4.39 +0.22
AURELIAN RESOURCES (T-ARU) $6.67 +0.23
It’s probably time to take a look at some charts for those
of us who believe that after this American mortgage mess
gets sorted out, most of the world is still going to need commodities,
if not more than ever.
They are having a sale on world markets because of this
paper panic and I’m sure it’s going to take a few weeks if not
months to work itself out, but some charts to look at are
those of mining companies that analysts thought (not too
long ago) were take-over candidates. For some big miners,
it’s simply cheaper to go buy someone out than take the
years to explore and find something.
The charts on Northern Peru Copper, Chariot Resources and
Corriente Resources, show how most mining stocks have been
beaten up over the last couple of weeks. These were some
of the picks of Canaccord’s Wendell Zerb as potential takeover
targets down the road. That potential still exists.
Another company on many analysts lists is Aurelian Resources
which has also been clobbered over the last while
and it does have a little problem because of politics in Peru.
But more drilling results were announced today on Aurelian
and these are the kind of assays any mining company would
love to have as they announce 158 metres of 25 g/t gold.
Some time soon, Aurelian is expected to produce updates
on just how much gold they might have in reserves to this
point, but once again, another chart on another mining stock
that’s having trouble at a distressed sale.
Fax: 780-408-1501
Disclosure: Northern Peru Copper, Corriente Resources & Aurelian Resources: Canaccord Capital covers these stocks and has a
Speculative Buy rating on them. (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.) Canaccord has recently led a financing
for Corriente Resources. Canaccord has recently participated in financings for First Uranium Corp. and Aurelian Resources.
DEB’S DITTY:
I’ve kissed so many men, I can do it with my eyes closed.
If you would like to receive the Late Edition, email Debbie at debbie_lewis@canaccord.com
www.corriente.com
www.chariotresources.com
www.northernperu.com
Northern Peru Copper
Chariot Resources
Corriente Resources
Thanks Irene I.
Aurelian Resources
www.aurelian.ca |
