₪ David Pescod's Late Edition February 1, 2008
COASTAL ENERGY (V-CEN) $5.00 +0.41
POINTS INTERNATIONAL (T-PTS) $2.90 +0.30
Yesterday, one of the more entertaining and better of the commentators you see on BNN, Peter Hodson who runs the Sprott Growth Fund again made his appearance. He is becoming a bit of media star mainly because many of his recent suggestions did quite well, at least up until quite recently and his Fund last year, was one of the best performing clearing almost 35%.
He and it have both suffered a bit in the last month or so, but when we caught up with him yesterday, it was nice to see that he had a definite vision of what’s been going on and will be going on.
He says that “we probably started the recession at the end of the third quarter of last year, even though the economic numbers did show a slight increase and let’s assume the average recession lasts ten months, we’ll assume that this recession is like the past ones and will be ten months, so that means we should be out of it by July. Also assume that the market is always forward-looking and we’ll assume that the market always looks ahead four to five months.” He bets this whole thing is over come March/April. Well that would certainly make us feel a lot better.
On the BNN show on Thursday, he gave his top three stock picks as Coastal Energy (V-CEN) for their work offshore Thailand which should see production increase dramatically and Points International (T-PTS), the outfit that let you trade your points with your different associations and his third pick was 5N Plus (T-VNP).
We ask him to concentrate and if he could only buy one stock right now, what would it be? Bankers Petroleum (TBNK) was his answer and he reminds us that he was part of the financing for Bankers yesterday. What was interesting about that is that we are in an ugly market and yet the good folks at Bankers (Abby Badwi and team) got a large financing done in a difficult market at a premium!
The one thing about Bankers Hodson says, is that he trusts management implicitly and for some reason you just can’t see it disappearing at a time that there is lots to worry about for so many other stories.
For a report on Coastal Energy by Canaccord’s Fred Kozak, just e-mail Debbie at debbie_lewis@canaccord.com.
TIREX RESOURCES (V-TXX) $3.15 -0.10
BANKERS PETROLEUM (T-BNK) $0.92 +0.02
The “Albanian Index” is on a tear, jokes Bryan Slusarchuk, CEO of Tirex Resources and he is referring both to the performance of Tirex and Bankers Petroleum over the last few days. Yesterday, Abby Badwi’s Bankers Petroleum announced a financing of $60 million that was grabbed in the main by two big institutions. The last thing Bankers needs is more shares outstanding as they still have over half a billion. But they have some pretty aggressive plans for Albania down the road, so they will need some cash.
But the big thing was, Bankers Petroleum’s financing was done at a premium to the market of 17%. When was the last time you saw a financing done at a premium instead of a discount?
As far as Bankers stock, I wouldn’t be surprised in a few months to see a stock roll back...something that usually is not good for a stock, but considering many of the players or those watching Bankers are institutions or funds that might not be able to buy a stock under $3.00 or $5.00, in this case, a roll back might actually be helpful.
As far as Slusarchuk and Tirex, they’ve also been bouncing back lately as they finally start work in Albania and because they were able to scoop up many promising projects in mineral-rich Albania, western technology might be about to discover something significant and drills are now turning. Who would have thought of an Albanian Index?
Take one look at this picture and you know that things are happening in this City. It’s the City of Dubai, and obviously there is an awful lot of Arab oil money being put to work in the neighborhood.
It’s estimated that 15-25% of all of the cranes in the world are currently being used in construction for that one city.
With that much supply coming on stream, one would assume they wouldn’t need rent controls anytime soon, but there is a slide show attached with this that shows the incredible development of this City over the last couple of years and what oil money can create.
If you would like to take a quick view and we suggest it’s worthwhile, just e-mail Debbie at debbie_lewis@canaccord.com.
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