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To: ms.smartest.person who wrote (1932)	12/29/2006 7:52:37 PM
From: ms.smartest.person	Read Replies (1) \| Respond to of 3198

&#8362 David Pescod's Late Edition December 28, 2006 SHEAR MINERALS (V-SRM) $1.04 +0.19 SILVERCREST MINES (V-SVL) $1.28 +0.11 Going into January and the New Year, we ask many of our top stock pickers from the past year to answer the question, “If you could buy only one resource stock for the coming year, what would it be?” It sounds like a simple enough assignment, but you know how it goes…there are so many pretty girls out there, that it is hard to love just one! We had asked Eric Coffin for his number one pick (he had an unbelievable year in 2005 and not a bad year in 2006) and it looks like the co-editor of the Hard Rock Analyst (along with brother David) answers the given question with Shear Minerals and Silvercrest Mines. Well actually, he is still working on his list but although we’ve been mathematically challenged most of our life – that still sounds like more than one stock pick... As we have mentioned, most of our favorite stock pickers are still working on their lists, so we’ll wait until we start publishing their final picks, which should be within 10 days and we look forward to their final selections. Eric’s most recent double has been Strateco—the uranium play in the province of Quebec that has attracted so much attention and volume. “No” he doesn’t walk on water, remember Nova Uranium, but his water walking act is a lot better than most. Two of the best performing stocks this year, from the summer Cambridge Conference show, were different stocks pick by brothers Eric and David Coffin, both up almost up 300%. So we’ll have to see who is the better stock picker this time around. BLUE NOTE MINING (V-BN) $0.485 +0.015 We call it the “Australian Disease” after the Australian’s who on their resource market seem to think nothing of printing hundreds of millions of shares for many of their resource stocks…which takes away an awful lot of leverage…and the potential for large rewards. That’s why when a company has over 50 million shares outstanding, they better have something very interesting or we take a pass. If they have a 100 million shares outstanding we tend to simply ignore it…but then look how Paladin has done despite having about 500 million shares out and two small uranium projects. Imagine how that Austrian based, Canadian listed company could have done if they had done a better job at managing stock issuing. So when we get to one of our favorite stock pickers of the past year suggesting that he may pick Blue Note Mining for his selection for the year ahead, we gag a bit. Blue Note has 300 million shares outstanding…plus a bit. So that $0.485 price it’s trading at, isn’t as cheap as it first appears. That’s a bigger market cap then you might have thought, but then zinc prices are flying and how many companies do you know that have a zinc mine opening in the next six months in the relatively politically and economically safe area of New Brunswick? We take the antidote to the “Aussie Disease” (a few shots of scotch) and buy a bunch. For a look see at the company email Sandra at sandra_wicks@canaccord.com and she will email you their presentation. OILEXCO INC. (T-OIL) $7.25 +0.05 On Boxing day (December 26th), while Canadian markets were closed it was anything but quiet south of the border….gold was winging it while oil tumbled and gas was clobbered. Natural gas is now trading at frightfully close to $6.00 an mcf and if it continues to trade there in mid-winter when the demand is usually high the…gulp…big concern is how low could it trade in the spring when the demand for gas is at its low? The accompanying concern is also how low could some natural gassy stocks fall-even from their current very weak status—for both stocks, trusts and also related service companies. I guess the good news is that for those with the long term horizon, we may be setting ourselves up for one heck of a buying opportunity! There is also a concern with some companies having high debt levels—some may not make it at least not in their current form if winter doesn’t make an appearance soon! For those looking for a little hand holding, Josef Schachter and Maison Placement is out with his monthly look at the oil and gas sector and if you are long on gassy stocks…he helps with a little hand holding. Schachter remains relatively bullish on natural gas and needless to say we hope he is right! Meanwhile, we are glad to see his top international oil pick is Oilexco. For those who might like to see Schachter’s work and his thoughts on Oilexco and natural gas, email sandra@sandra_wicks@canaccord.com Wishing all our readers and their families the best of the New Year! We will be back on January 2, 2007 If you would like to receive the Late Edition, email Debbie at debbie_lewis@canaccord.com