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Pastimes : Crazy Fools LightHouse -- Ignore unavailable to you. Want to Upgrade?

To: ms.smartest.person who wrote (2777)	8/22/2007 7:18:46 PM
From: ms.smartest.person	Read Replies (1) \| Respond to of 3198

&#8362 David Pescod's Late Edition August 21, 2007 FIRST URANIUM CORP. (T-FIU) $7.50 -0.35 URANIUM ONE INC. (T-UUU) $10.90 -0.50 STRATECO RESOURCES (T-RSC) $1.80 +0.15 It almost looks like it’s getting out of hand. Today according to Bloomberg, Landesbank Sachsen Girozentrale, the German state-owned bank based in Leipzig, Germany announces that they have about 3 billion euros worth of investments linked to subprime mortgages. And the bank is looking for a little help. If little state-owned banks in the middle of nowhere in Germany have these kind of exposures to the American mortgage problem, I guess we can count on a few more weeks before the world sorts this paper mess out. Analyst Dennis Gartman has done some work, coming up with some charts showing that over the next several months, there are an awful lot of Americans whose mortgages were originally signed with teaser—or very low mortgage rates that when they come due, will be due at much higher rates. One assumes that this mortgage mess in the States isn’t going to be over for a while. Having said all this, booming economies in Asia still need stuff like nickel, lead, zinc, uranium or you-name-it. One commodity that’s really had a rip-roaring last three to four years has been uranium that in the last few weeks has settled back as most international utilities have all the uranium they need up until the end of the quarter, which is October 1st. Then uranium prices might start getting interesting again. In the meantime however, they are having a two-for-one sale in the senior uranium stocks and in the junior sector, it’s a three if not four-for-one sale in the uranium's. We mention Kevin MacLean of Sentry Select fame who runs several mining funds and had been one of the top stock pickers in the country until the recent malaise. A lot of good reputations have had a tough time in the last couple of weeks, but we hope Kevin’s crystal ball will continue with its winning ways down the road. When we ask him in the uranium sector, what would be his top three picks—he picks First Uranium, Uranium One and Strateco and he says he would pick them in that order and for his funds, he already owns them. As far as the gold's which he is bullish on, he is still picking up some of his favorites, so we will hear his favorite picks further down the road. FIRST URANIUM CORP. URANIUM ONE STRATECO RESOURCES NORTHERN PERU COPPER (T-NOC $7.25 -0.30 CHARIOT RESOURCES (T-CHD) $0.86 -0.04 CORRIENTE RESOURCES (T-CTQ) $4.39 +0.22 AURELIAN RESOURCES (T-ARU) $6.67 +0.23 It’s probably time to take a look at some charts for those of us who believe that after this American mortgage mess gets sorted out, most of the world is still going to need commodities, if not more than ever. They are having a sale on world markets because of this paper panic and I’m sure it’s going to take a few weeks if not months to work itself out, but some charts to look at are those of mining companies that analysts thought (not too long ago) were take-over candidates. For some big miners, it’s simply cheaper to go buy someone out than take the years to explore and find something. The charts on Northern Peru Copper, Chariot Resources and Corriente Resources, show how most mining stocks have been beaten up over the last couple of weeks. These were some of the picks of Canaccord’s Wendell Zerb as potential takeover targets down the road. That potential still exists. Another company on many analysts lists is Aurelian Resources which has also been clobbered over the last while and it does have a little problem because of politics in Peru. But more drilling results were announced today on Aurelian and these are the kind of assays any mining company would love to have as they announce 158 metres of 25 g/t gold. Some time soon, Aurelian is expected to produce updates on just how much gold they might have in reserves to this point, but once again, another chart on another mining stock that’s having trouble at a distressed sale. NORTHERN PERU COPPER CHARIOT RESOURCES CORRIENTE RESOURCES AURELIAN RESOURCES