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Strategies & Market Trends : Ride the Tiger with CD -- Ignore unavailable to you. Want to Upgrade?

To: okey who wrote (58616)	8/3/2006 6:53:07 PM
From: calgarylady	Respond to of 312691

Here is the post from SH from the Kaiser report for CUU and below the Michael Shaefer clue that this might be his pick. From John Kaiser: "One of the intriguing rumours making the rounds is that Novagold Resources Inc (NG-T) might eventually consider a friendly takeover bid for Copper Fox. Novagold is developing the Galore Creek copper-gold deposit whose location is inconveniently wetter than Shaft Creek. It is unlikely any major would make a bid for Novagold, whose asset base includes a 30% carried interest in the Donlin Creek gold project in Alaska which is now under the control of Barrick following its takeover of Placer Dome. Novagold has already proven itself more than able to fund prefeasibility work for a major project, and recently raised US $176 million through a public offering at US $11.75. Novagold, which has just over 100 million shares fully diluted, has a market capitalization of about $1.5 billion, which makes it one of the more expensive non-producing resource sector juniors and probably represents a barrier for a takeover bid by a major. A company such as Novagold which lacks an obvious exit strategy has no choice but to go it alone, something it can do best if it bulks up its asset base through acquisitions involving the issue of its stock. Shaft Creek is a strategic base metal asset (copper & molybdenum with minor silver, gold and rhenium credits) which is less advanced in the development cycle than Galore Creek, and requires another $8 million in prefeasibility work before Copper Fox vests for a 93% interest. At that point, which Copper Fox could reach by the end of 2007 if it can raise the money on lucrative terms, Teck-Cominco will have the option to claw back a 70% interest, which would reduce Copper Fox to a 23% net interest. Assuming the recent financings close, Copper Fox will have about 54.5 million shares fully diluted, which represents a $36 million market cap at the current $0.66 price. If Teck-Cominco declined to claw back 70%, the current valuation would be dirt cheap in the eyes of anybody who thinks that the Structural Bulls will rule the metals market during the next couple decades. A back-in by Teck-Cominco, however, would convert the implied project value to $156 million. If Novagold made a paper offer for Copper Fox at 2 or 3 times the current price, it would risk paying the equivalent of $300-$450 million for a stake in Shaft Creek, though the actual outlay would only be $72-$108 million worth of Novagold stock. That would represent dilution of less than 10%. If Novagold owned Shaft Creek, it could easily accelerate the prefeasibility study and put Teck-Cominco on the spot sooner than the major would like to be. One assumes, of course, that Copper Fox management would favor an early exit strategy that delivers a fairly "hard" value in the range of $1.40-$2.00 per Copper Fox share. The alternative would be a higher stock price at a later date with exposure to a downturn in metal prices, a downturn that might be temporary in big picture terms, but no less painful during the interim and another post: Michael Shaefer will reveal a stock next monday. A stock sitting on 4,7 billion C$ worth of copper + gold in British Columbia. Must be CUU

To: okey who wrote (58616)	8/3/2006 8:58:22 PM
From: Rocket Red	Read Replies (3) \| Respond to of 312691

From the Desk of: Michael Schaefer, Editor Subject: 2 Explosive Investments Coming Monday Date: August 2, 2006 Mike Schaefer here. The first stock is a coming copper colossus that trades for just $0.40 a share. And we'll be getting in at the right time. With a market cap of just $10 million Canadian, we have incredible leverage for some mind-blowing gains in the coming months. You see, the company - whose stock trades for just $0.40 a share - is sitting on $4.7 billion in copper in British Columbia. Let me put it another way. Each share of this stock gets you access to more than $20 worth of copper per share. And that's at today's copper prices. You know me. I think commodity prices will continue to rise substantially. And this company will be right there in the middle of the bull market. They have a billion-dollar partner in Teck Cominco that will help with the project. So this thing is about as close to a sure bet as I've seen. And I haven't even mention the fact they also have $97.8 million in gold. That's icing on the cake. Buy this stock and forget about it. I think in a year you'll be sitting on a 400% gain.