₪ David Pescod's Late Edition March 21, 2007
WAVEFRONT ENERGY (V-WEE) $1.22 +0.12
Wavefront Energy is in the oil and gas business and it has a chart like many oil and gas stocks, make that many gassy stocks, but it’s not in the natural gas business at all. It’s in technology of a brand-new breed being used to increase productivity in old fields.
Jim Letourneau of the “Big Picture Speculator” has been a big advocate of this story...all the way up...and all the way down. As of today, he is still a big booster of the story and he points out the news just released today on Wavefront whereby their technology has increased production by a factor of 3.3 times on their Rogers County field where they are employing their technology.
Letourneau tells us it may not catch Corridor Resources (CDH), but “it has a chance now” he adds.
As far as the news release today on Wavefront, they point out that over the past 30 days production results for the largest lease development consisting of 160-acres exceeded previously recorded monthly production totals dating back to as far as 1979 by a factor of 3.3.
Letourneau has mentioned in the past the oil patch is like many other businesses...slow to adapt to new technology, but he suggests there are so many old oil fields around North America, that once their technology does finally catch on, this story should be a good one.
SHANGHAI STOCK EXCHANGE:
Just a few days after the Shanghai Index in China fell 8.8% and threw markets around the world into a tizzy, here it is setting new record highs. We don’t want to come across as a worry-wart, but sometimes we think if there is something to worry about in the world right now as far as the markets, this might be it.
Most Chinese investors have knowledge of nothing but good times (notice the chart to the right) and they have simply no recollection of a crash of 1987 or a correction of 1991, let alone what happened in 1929. They’ve known nothing but good times and it’s very few people that can think of a market even that’s been more than ten years old.
Meanwhile, Chinese stocks are now trading at very lofty valuations by North American standards and just how much one can trust Chinese accounting, is still very much open to debate, particularly regarding some of the big State-owned or at least control companies that still dominate the Chinese exchanges.
The Chinese market though is starting to play a more important role in the world economy and also financial markets. Just how it could cope if suddenly something went wrong, could be very disconcerting.
CONNACHER OIL & GAS (T-CLL) $3.62 +0.12
CORRIDOR RESOURCES (T-CDH) $8.10 +0.05
RALLY ENERGY (T-RAL) $5.43 -0.01
While we must confess we are having a good time down in Nuevo Vallarta, Mexico (it’s just outside Puerto Vallarta) and the area is starting to fill up as we get close to the season when Canadians and Americans have their winter break and this place just gets flooded with tourists, students and the like.
We came out a little ahead of the crowd to take a look/see at the area and also do some reporting for anyone interested — you know, the typical safety concerns, where to go, where to dine—that kind of stuff. It’s a tough job, but someone has to do it!
As you go up and down the hotels in Nuevo Vallarta, this is what they are talking about...the appearance of this little dinghy two days ago has created more than a little bit of a buzz. It’s a 225-foot private yacht and yes, that is a helicopter with its own pad on the back. It also has enough speed boats, dinghy’s and the like to start its own Navy.
Who’s is it? The crew wasn’t really forthcoming, but the suggestion by a few was that it is owned by a billionaire from Montana. Well there’s not too many of those, and because we know that TV mogul Ted Turner is now raising buffalo in Montana, just maybe it’s his.
For sure when you look at this beauty, you know it’s not just everyone’s yacht and it might even be out of Joe Martin’s league!
Meanwhile, we have been trying to catch up with one of our favorite oil and gas analysts who has had the magical touch over much of the last year and that’s Andy Gustajtis who just recently left for vacation in Costa Rica. That’s the beautiful country south of Mexico, known for some beautiful beaches and even more importantly, their developing ecotourism business where if you want to see any one of hundreds of different animals, this is the place you go.
But today, we finally do catch up with Andy and he’s not having quite as good of a vacation as we are. Only two and a half days in Costa Rica, he’s already had two cars vandalized, his computer stolen, his blackberry out of commission and he can’t even find out if the accommodations he has, are still available for him.
He’s not having as much fun and with no ability to call home, I don’t think he’s any farther ahead than we are.
We had hoped for updates on two of his favorite stories — Corridor Resources (CDH) and Rally Energy (RAL), which continue flirt with new all-time highs and Connacher Oil and Gas, which he has big hopes for, for the rest of this year.
We hope Andy and the rest of his vacation is much better and maybe (as his wife has just mentioned) with no communication abilities, maybe you will finally be able to get away from it all.
MOLY MINES (T-MOL) $3.34 +0.71
BLUE PEARL MINING (T-BLE) $11.68 +0.72
The one sector that seems to be having a good time today is molybdenum or at least stocks that seems to have moly in its name. The element used in the creation of alloys for high temperature and high pressure steel is something that's very important for that business and once again, demand continues to grow from the Far East for the product.
Many had assumed that moly, frequently a biproduct from big copper mines and other mines— that it was just going to be a matter of time before some old mines were put back on stream and moly prices would take it in the teeth, but those mines have yet to be put back on production and moly recently has started its way back upwards after a fairly significant correction.
Two big moly stories, Moly Mines out of Australia and Blue Pearl out of BC, both have enjoyed a great day.
If you would like to receive the Late Edition, email Debbie at debbie_lewis@canaccord.com |
