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 (1223)	7/11/2006 10:26:04 AM
From: ms.smartest.person	Read Replies (2) \| Respond to of 3198

&#8362 David Pescod's Late Edition June 30, 2006 ENDEAVOUR SILVER (V-EDR) $3.48 +0.14 IMA EXPLORATON (V-IMR) $3.25 n/c If you own shares in a mining or mining exploration company with a name like Glamis Gold, Endeavour Silver, Alamos Gold, Esperanza, Impact Silver, Great Panther, or Genco – the list goes on, the question is, should you be worried? We just have gone through a phase in Peru where all sorts of excitement was created by an election that pitted an ultra-nationalist Hugo Chavez against a President who had previously bankrupted the country. In this case it was suggested, that the President (Alan Garcia) who almost bankrupted the country of Peru was the good guy and he did win the election. Mining stocks based in Peru, that had taken quite a beating (and in some cases an absolutely battering) have bounced back nicely. Now we have an election in Mexico, which features a pro-business guy like Felipe Calderon who is talking about tax cuts versus Andres Manuel Lopez Obrador, who is the former mayor of Mexico city with a definite leftist ilk. What to expect from this? We go to Brad Cooke of Endeavour Silver whose major assets are also in Mexico for an update. He points first of all to a rather low corporate tax rate in Mexico of 28% and suggests that even if it is moved up, it might not do damage. He also suggests that if the election is close, results may not be over until August, because of new legislation in Mexico that allows folks to challenge a close election. In that case, we’ll have to wait until the end of August for any definitive results. How worried should a person be? Well, Cooke isn’t all that worried... not yet anyway! As far as the junior mining sector, he suggests that we probably have seen the bottom and he mentions that with the Endeavour Silver treasury he has even picked up some silver ETF’s that are up nicely since the bottom near the second week of June. He figures it could take much of the rest of the summer for the resource sector market to put in a bottom, but afterwards he is a big bull on precious metals. He figures the precious metal stocks separate from the base metal stocks as gold goes up and breaks old highs and heads towards $800 to $900 by year end. He also suggests that silver should do quite well again, although it might have trouble breaking out. When we ask him for some stock picks, Cooke shows his adventurous self with two selections. One of them is Canasil Resources (CLZ) which he describes as a “cheapie with a chance” (you can do your own homework on this one folks, but he likes management) and his second pick is IMA Exploration which he admits, is taking a side on the ongoing legal struggle as sooner or later, we are going to find out who owns the massive Navidad project in Argentina—either IMA or Aquiline. MINERA ANDES (V-MAI) $1.22 +0.07 ATNA RESOURCES (T-ATN) $1.27 +0.14 GOLD $613.40 +27.30 “I wouldn’t worry about getting into cash now”, David Coffin of the Hard Rock Analyst says, “Now I worry about how to spend it!” We’ve been through quite a correction in the resource sector with many junior miners seeing 50% cuts and those can be brutal – some are even worse! But, with the surprise news yesterday out of the U.S. that interest rates might take a pause in their upward accent, the American dollar is taking it on the chin and gold has soared! “I’m pretty sure that we have put bottom in both the gold price and the junior mining index”, Dave Coffin tells us, but he still figures that this summer could still be bumpy before good times resume in the fall! He also suggests that it is going to take a while for the Americans and those who follow the U.S. economy to realize that the U.S. economy no longer runs the world, as Asia takes an every increasingly more important role particularly in commodities. As far as stocks to watch Atna Resources remains one of his favorite picks with three projects on the go, but he also suggests people start looking at Minera Andes. It has a fair amount of stock outstanding he suggests but they are funded to go into production, have all the permits necessary and all the cash they need as well. You should look at it several ways, he says, as a hedge with gold and silver and speculating on copper or just a real significant bet on copper! It is hard to show here that Minera Andes suffered like everyone else despite the good news they put out recently but now it too seems to be starting to go the right way…….His target is $2.00