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 (2576)	6/6/2007 12:59:23 AM
From: ms.smartest.person	Respond to of 3198

The new liquid investment: water Last Updated: Monday, June 4, 2007 \| 6:33 PM ET CBC News cbc.ca A new exchange-traded fund (ETF) began trading on the TSX Monday that targets the most valuable but often overlooked liquid investment of them all — water. The Claymore S&P Global Water ETF tracks the S&P Global Water index, an index that invests in 50 water-related businesses — 25 from the water utilities and infrastructure field and another 25 from the water equipment and materials sector. An American dollar version of the Claymore ETF launched last month on the American Stock Exchange. It joins two other water-related funds — the two-year-old PowerShares Water Resources portfolio Fund, and the First Trust ISE Water Index Fund, which began trading in May. These funds are all driven by the belief that the global demand for water will continue to grow, while supplies will fall. The funds do not invest in water itself. For one thing, it's difficult to ship economically and many jurisdictions do not allow water diversions or exports. Instead, they invest in American, European and Asian companies that supply water, or those that build pipelines, pumps, and drills, or firms that test and treat water. "We believe the increasingly tighter supply of clean, fresh water is driving greater infrastructure spending in the sector and may create good opportunities for long-term investors," said Som Seif, CEO of Claymore Investments, Inc., Canada. Seif isn't alone. CIBC World Markets economist Benjamin Tal says the demand for water is doubling every 20 years — especially in such emerging markets as China and India. Tal, who wrote a bullish report on the water industry last December, also points out that much of the water infrastructure in the developed world was built more than a century ago and needs billions of dollars in capital investment. Governments are showing little appetite for the expense, but private industry is — as long as it gets a return on its investment. Tal knows that the privatization of water is a sensitive topic and it hasn't always worked in other jurisdictions. Water is not a typical commodity, where prices are set in the marketplace. "Maybe there is some room for … a public-private partnership," Tal told CBC News. "We need the private sector in order to solve these problems in our infrastructure." Tal said the investing world is starting to notice that investments in water-related companies have easily outperformed the broader market. "It has been an excellent investment," he says, noting that the investments have been less volatile than many other sectors and pay a high dividend.

To: ms.smartest.person who wrote (2576)	6/6/2007 8:58:40 PM
From: ms.smartest.person	Read Replies (1) \| Respond to of 3198

&#8362 David Pescod's Late Edition June 6, 2007 DOW JONES: TSE EXCHANGE: TSX VENTURE EXCHANGE: As the chart on the American Dow Jones shows you, it’s been a fairly decent year for American stocks and in Canada, with so many resource-based stocks, it’s been a lot of fun as well...maybe until today. Morgan Stanley, one of the world’s biggest brokerage houses has advised its clients today to slash exposure to the stock market after its three key warning indicators began flashing a “Full-House” sell signal for the first time since the dot com bust. According to Bloomberg, this warning has been issued by Morgan Stanley only five times since 1980. Morgan Stanley points to interest rates that are rising and reaching critical levels, concerns about inflation, P/E ratios near an all-time high of 20 and their composite valuation indicator which divides the P/E ratio on stocks by bond yields. As we’ve mentioned many times, we wonder if we are ever going to have the traditional sell off in the junior mining stocks we see this time of year, and maybe this is precipitating it. Already we’ve seen for the last several months, a decline in the gold stocks and the Gold Index off almost 20% as gold prices have stalled and lately, there has been quite a correction in the junior uranium sector as well as in months gone by, any stock with uranium in its name seemed to go only up. If this is just the traditional spring sell off to be bottoming in summer and get going again in the fall, so be it, but the Morgan Stanley people are obviously concerned as they suggest that their model is forecasting a 14% correction over the next six months. Morgan Stanley, it should be pointed out, is not predicting a recession—it’s more or less just the market shaking off its latest excesses and then they suggest it’s “Back to the Races.” GULF SHORES RES. (T-GUL) $0.35 +0.005 INTL. FRONTIER RES. (T-IFR) $0.95 +0.07 There’s more than a little joy coming from the North Sea today, on a day where the markets are big-time red. Oilexco hits a new all-time high, as does Ithaca Energy, a story we started following recently and have big hopes for. In the meantime, we hear from Mike Turko out of London and Pat Boswell out of Calgary on tiny Gulf Shores and Intl. Frontier and they suggest according to Lundin Oil & Gas, they hope to be drilling their 41-42 project (Lytham in the North Sea) possibly as early as July 22nd. They also expect to be drilling the Ridgewood play by late October, so for these tiny guys who had such a disappointment at Laurel Valley, hope springs eternal. GOLDCREST RESOURCES (V-GCL) $0.82 +0.21 We are lucky enough to interview a lot of people in the mining and oil and gas business that travel in interesting circles and of course, we are always intrigued by what stories in the marketplace they find intriguing and of course, we encourage them to keep us up to snuff. So shame on Carl Hansen the President of Andina Minerals for not screaming at us first about Goldcrest Resources. Sure, two days ago, he tells us about Goldcrest and their 8000 metre drill program, results of which should be spread over the next few months. He also pointed to the first press release of 106 metres with .66% copper and .49 g/t gold from a single hole. He mentions that this area of Burkina Faso looks encouraging. When we ask him to play stockbroker, Hansen even says $1.25 is the first stop. From today’s activity in the market, it shows that it’s well on its way. When we get a hold of Kevin Bullock, the President of Goldcrest, we learn how Hansen and Bullock got together ... they have offices beside each other on Bay Street and have followed each others work over the years. That’s why ironically when we ask Bullock to pick some mining stories other than his own, he picks Hansen’s Andina Minerals which he figures is worth a double because of their ongoing ability to increase their gold reserve on their Volcan Project in Chile. He also likes Messina Minerals (MMI) and suggests the project is now getting more tonnage in reserves than the market is giving it credit for. Which gets us back to Goldcrest, which is tearing up the market on a day everything else is red. The best look at that is from Canaccord’s Junior Mining Weekly where analyst Graeme Currie takes a look at the story. If you want copies, e-mail Debbie at Debbie_lewis@canaccord.com.