₪ David Pescod's Late Edition December 21, 2007
CULANE ENERGY (V-CLN) $6.65 +0.08
I guess we shouldn’t give up on everything that’s in Alberta just because of the tax-grab by the Stelmach government ... there are going to be some plays that people are still going to have to be aware of and Culane Energy is one of them and we should mention that we are a shareholder. Shortly they will be starting a waterflood project at Killam that could have a significant impact on the company and we notice that the big brokerages are starting to pay attention.
RBC Capital Markets just published a report on December 5th and PI Financial just published a report on December 18th and with waterflood results coming out over the next couple of months, suddenly this company and their project at Killam will be attracting attention. In the past it’s had almost no attention and insignificant volume and once again, there’s not a lot of stock out.
RBC has a target of $8.50 while PI Financial has a target of $9.50. There’s always a chance they could be right, but frankly folks, we are a little more greedy than they are.
GULF SHORES RES. (V-GUL) $0.295 +0.035
INTL. FRONTIER RES. (V-IFR) $0.85 +0.01
The “Santa Claus Rally” is here. It seems to happen this time every year, with the tax-loss selling out the way, it’s always a bit of a relief. Today we have Toronto up 179 points and the Dow is up 204 points.
Meanwhile, little Gulf Shores and International Frontier Resources announced that finally, they along with Lundin have commenced drilling on the Ridgewood prospect in the Moray Firth area of the United Kingdom offshore. They are targeting the Jurassic Volgian sandstones and if commercial reserves are discovered on the Volgian, the well will be deepened to evaluate the lower Beatrice sandstone.
Lundin is the operator and drilling is expected to take 28 days. Here’s to hoping ...
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Two of the most enjoyable books you might have ever read over the last two decades have been written by Jim Rogers, who has been one of the most successful investors out there. The two books, Investment Biker Around the World with Jim Rogers, where he hops on his bike and spends more than two years looking at different areas of the world, for a fun, must-read book as he toured the world and the book Adventure Capitalists, the ultimate road trip was also a hoot.
Now he specifically looks at China where he has spent a lot time living over the last while. It’s a brief, but pretty thorough look at the country that will probably be the most important one in the world over much of the next decade.
It’s the perfect gift for those stuck a little late in the Christmas shopping. If you are looking for ideas for someone who watches the market this might be the answer. Its not a big hefty thing, but a light read and you can finish on the next airline flight.
Samples: “For nearly three decades, China has been the fastest-growing country in the world. With a rate of savings and investment exceeding 35% among its 1.3 billion people, and foreign reserves that already top the planet, it is set to become the most important country in mankind’s future.”
“I’ll got a step further: just as the 19th century belonged to England and the 20th century to America, so the 21st century will be China’s turn to set the agenda and rule the roost. Before I get into a single stock listing, the very best advice of any kind that I can give you is to teach your children or your grandchildren Chinese. It is going to be the most important language of their lifetimes.”
“Even as China’s economy expanded at 11% in 2006, Barron’s magazine ran a cover story called “What Could Go Wrong With China?” The article’s author pointed to three serious problems for China: an aging populace, widespread corruption, and environmental degradation. But he missed more obvious trends: hundreds of millions of rural dwellers able to replenish China’s aging labor force for decades, similar levels of corruption in all of the so-called Asian Tigers not so long ago, and China’s environmental problems presenting a huge opportunity for foreign and domestic companies.”
Another tidbit is on the comparison between India and China. He writes, “Aside from its rigid caste system and an unchecked birthrate among those who can least afford it, India has been ambivalent at best toward entrepreneurship, capital, and deregulation. Even companies like Kentucky Fried Chicken and McDonald’s have run into trouble by moving too fast. The country’s mountains of red tape and convoluted legal procedures are enough to put off even the most motivated investors. According to the World Bank, it takes more than twice as long to start a business in India than in China, and almost twice as long to register property or to enforce a contract (425 days in India to 241 in China).”
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