Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : Crazy Fools LightHouse -- Ignore unavailable to you. Want to Upgrade?

To: ms.smartest.person who wrote (1176)	6/17/2006 11:59:36 AM
From: ms.smartest.person	Read Replies (1) \| Respond to of 3198

&#8362 David Pescod's Late Edition June 16, 2006 SHERWOOD COPPER (V-SWC) $2.85 n/c Yesterday, we did a long interview with Catherine McLeod- Seltzer, the super-successful mining gal previously heading Arequipa Resources and now with both Bear Creek Mining and Peru Copper. When we ask her if she could only buy one stock of those that are not her own, she picks Sherwood Copper. In the small world that is mining, Sherwood Copper just happens to have an Executive Chairman and Director named McLeod. That’s right—her brother Bruce McLeod. Bruce McLeod is also on almost a dozen boards as well. It was interesting in today’s market to notice some fairly significant drilling results announced by Sherwood Copper including 2% copper plus some gold credits over 34 meters. Yes, that’s almost 100 feet! It worked out even better over a much slimmer section. For some additional outside thoughts on Sherwood Copper, we went to Eric Coffin of the Hard Rock Analyst who is usually a pretty good source of what’s going on in the markets right now. When we had last touched base with Eric, it was a few days ago in the middle of a 200 point drop in Toronto and the Venture Exchange and at the time, he wasn’t quite sure what to expect for the general markets. After a few days to think about it, Eric is now suggesting that we may be in a basing process, but also suggests there may be a bit more generous market out there over the summer for those companies that come out with some good results than some people might think. Then we ask this interesting question, if he could buy only one stock today, what would it be? Sherwood Copper is his answer. He points out they are getting exactly the kind of drilling results that they were hoping for and in a market like today, they don’t seem to be getting credit for it. “Feasibility reports should be out in just a few weeks and that might give a couple of people that are worried about the current market conditions, just a little more courage to act upon them” he says. The chart shows you how Sherwood Copper (like every other resource company) has been affected in this market sell-off and one wonders if we’ll see some time needed to build some base building here before people get a little more excited. Meanwhile, besides the drilling results today, you’ll notice that there were some interesting developments the company announced, regarding their use of port facilities in Skagway, which will be integral to their development of their assets at Minto in the Yukon. NATURAL GAS $7.14 -0.067 ANDERSON ENERGY (T-AXL) $5.10 -0.15 We’ve mentioned a few times over the last couple of weeks and months the concerns about natural gas right now—its got a low price already and there are big concerns its going to stay there for a while or go even lower! The chart at the top is the best explanation as to why…….in a world where there seems to be a big shortage or a concern of a shortage of oil, there is NO shortage at least in North America of natural gas at this time, as reserves and supply are way above the five year average. Having said that, natural gas just popped a bit the other day and why? Well, once again one must review one of the biggest uses for natural gas these days in North America and that's for the creation of electricity. While the utilities have enormous multi-billion dollar hydrocoal and uranium facilities, most natural gas fired electrical plants tend to be smaller and so during slow times its the big plants where the utilities have big money invested that are kept going. Usually in the winter with its additional demand for heating and in summer with its additional electrical demand for air conditioning, that you see spikes in demand for electricity and that's when the natural gas - powered electrical plants get turned on. What happened this past winter was ... well there was no winter. It was warm throughout north America and demand for natural gas to fire these electrical plants simply didn't appear. Here we are in mid to late June and there is still no sign of summer. If we have another period of low demand the concern is that the over supply could get even worse and bring gas prices down even lower... Considering that these days, gas at $6.00 plus is historically a high price, but with the huge increase to oil & gas companies for land costs, labor, piping cost to you name it—$6.00 gas is suddenly in many areas no longer profitable. As a result, many oil & gas companies have cut back their exploration and two of the biggest being EnCana (ECA) (a $800 million cut in their natural gas exploration budget) and Canadian Natural Resources (CNQ) (slashing 150 wells off of their exploration program as well), but other oil & gas companies are cutting back gas exploration as well and trying to emphasize oil exploration. What happened the other day to give it the $0.50 pop? Weather reports through some areas of the United States, showing that there might actually be a sighting of summer! Some heat right now could make a big difference to the natural gas markets…...but if it isn’t, suddenly people will have to be looking way down the road for winter and hoping for cold!!! ANGLO MINERALS (V-ALM) $1.05 n/c After this enormous sell off we’ve had right across the resource sector, the question remains...WHAT NEXT? Some believe we are in a bear market for commodities, other suggests it’s simply a correction that was long overdue. Either way, many expect a period where a base is going to have to be put in somewhere for the various indexes. Our own belief is that this commodity joyride, isn’t over as long as the economies behind China and India remain strong—after all, they’re the ones sucking up just about every pound of copper or barrel of oil that produced in incremental amounts. So maybe one should be looking for those stories that have been clobbered. One that hasn’t been necessarily clobbered, but is certainly down from a few weeks ago is Anglo Minerals. It’s on our list as one to watch because their deal with BHP, one of the world’s biggest mining companies means that suddenly Anglo has a significant partner to potentially develop their Saskatchewan potash project. The deal means that Anglo is paying a sum of $3.8 million when satisfied with all conditions and then spending up to $40 million U.S. over the next 66 months to keep the project in good standing and complete a feasibility study. Note how the stock ran, even in a bad market when this arrangement was announced 10 days ago, but how like everything else, it suffered recently. Disclosure: Anderson Energy : 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.) If you would like to receive the Late Edition, just e-mail Debbie at debbie_lewis@canaccord.com