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Strategies & Market Trends : Strictly: Drilling II -- Ignore unavailable to you. Want to Upgrade?

To: Frank Pembleton who wrote (17462)	8/17/2002 8:22:39 AM
From: Frank Pembleton	Respond to of 36161

Resourceful Thinking Interview by Donna Guzik There may be a lot of pessimism in the market right now, but every cloud has a silver lining and in this case it's the resource sector that is showing the most promise says Mavrix Funds Ltd. President & CEO Malvin Spooner ALCAN INC (T.AL) INCO LTD (T.N) KEYWEST ENERGY CP (T.KWE) RUBICON MINERALS CP (V.RMX) Summary * The Mavrix Explorer Fund was created in June and focuses on growing Canadian resource companies. * The emphasis at the moment is on junior mining and junior oil and gas exploration companies. * The outlook for commodities is positive despite the current economic slowdown. * Resources have been the winners to a large extent recently, but people have focused so much on the losses in the technology sector that they have ignored increases in the commodity sector. * Companies with stock prices that have the potential to appreciate substantially from current levels are the ones Spooner targets. * There are many buying opportunities at the moment because stocks in these sectors are trading at between 10-15 times earnings across the board. * These resource stocks are better value than many technology stocks which are still trading at 40 times their earnings. * Spooner concentrates on smaller stocks that aren't well known and are priced at a discount in relation to their growth rates. * Some of these stocks include Key West, which has discovered a large gas find in Alberta, and Rubicon Minerals which has been doing extensive drilling in the Red Lake region and exploring for gold in Newfoundland. * Many junior companies in the resource sector have been taken over by larger corporations in the past three years, and now the talented geologists and engineers that were once employed by these smaller companies have started brand new companies in Alberta. It’s a constant cycle. * Consolidation in the mutual fund industry has result in bigger companies that all offer the same kinds of products. * As a result the mutual fund industry is becoming more homogenous, and Spooner’s goal is to provide an alternative to this by offering an array of products that meet the needs of various types of investors. investorcanada.com