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To: ms.smartest.person who wrote (2859)	11/1/2007 10:42:44 AM
From: ms.smartest.person	Read Replies (1) \| Respond to of 3198

&#8362 David Pescod's Late Edition October 31, 2007 PILOT ENERGY (V-PGY) $2.81 +$0.36 PEERLESS ENERGY (T-PRY.A) $5.20 +$0.40 We have written more than a few times over the last few months about the amazing Bakken trend in Saskatchewan, an area that produces some of the sweetest/lightest grade crude around and also has lots of liquids associated with it. There are only a few names involved in the area and as of today, there is one less as Crescent Point Energy (CPG.UN) takes out Pilot Energy. The Bakken trend has seen its economics changed dramatically over the last year as Packers Plus has devised a new technology that has made the Bakken even more economic ... flow rates that used to start at 100 and peter off to 50 to 80, is suddenly starting at 200, 300 and sometimes even 400 barrels a day. Crescent Point has already bought out Innova Exploration (IXL) a month ago and one of the few players left with significant land holdings in the area is Peerless Energy, which is having a nice bounce today as followers of the area assume that this is possibly/probably the next takeover target. The brokers are watching it closely and Westwind ups their target on Peerless from $6.00 to $6.75; while Genuity Capital is really a believer, increasing their target from $6.85 to $9.50. One of them might be right. CROSSHAIR EXPL. (V-CXX) $2.63 +$0.33 FORSYS METALS (T-FSY) $4.50 +$0.25 URANIUM ONE INC. (T-UUU) $10.25 -$2.48 The five-year chart of uranium shows that it’s been on quite a run until a very recent sharp correction as many of the big international utilities that had enough in inventory, simply went on a buyers strike. Now they are re-entering the market according to many reports, because it is a very illiquid market, but at this point it is interesting to note that analysts are all over the place on what to expect next for the price of uranium. Some are expecting as little as $75, some expecting as much as $200 if not more. The one fundamental that seems to be emerging is that several of the new uranium plants being built are years behind schedule and won’t need uranium supplies anytime soon. On the other hand, there’s lot of nuclearpowered facilities that are expected to be built in the next two decades, particularly in China and India. Also on the bullish side today is the announcement by company Uranium One that their production estimate for 2007 has been revised significantly from 2.5 million pounds to approximately 2.1 million pounds. They announce today, “This revision is primarily due to the extended autoclave commissioning period at the Dominion Reefs Uranium Mine plant in South Africa.” They continue, “The first autoclave has now been commissioned and is operating at design throughout….however, production targets have been adjusted due to a temporary shortage of sulphuric acid caused by delays in the completion of a local Kazakhstan copper smelter. This shortage is expected to only impact on uranium start-up projects.” Needless to say, this tidbit of news has forced analysts covering Uranium One to significantly alter targets and those targets are now all over the place. UBS lowered their target to $12.50 from $15.00; GMP from $21.00 to $17.85; Wellington from $16.00 to $13.00; RBC has swacked it from $12.00 to $9.00 and called it an underperform while Cormark has cut their target from $15.85 to $13.80. Once again, one of them might be right. ARISE TECHNOLOGIES (V-APV) $2.40 +$0.20 TS03 INC. (T-TOS) $2.14 +$0.06 GENESIS WORLDWIDE (T-GWI) $1.66 +$0.06 We are much appreciative of Andy Gustajtis stepping in for us yesterday and his piece on solar power probably can’t be emphasized enough. Once again reviewing what he wrote, “The reality is that high oil prices now will create a huge impetus to look at alternative energy in a much more aggressive form than in the past and solar has a lot going on for it. You will not be able to build an oilsands plant in downtown Toronto or in Beijing or in L.A., it’s going to have to be in Fort McMurray, but you can build a solar park in downtown Beijing, downtown Toronto or downtown L.A. and you can produce the electricity at exactly the same time of day when the air-conditioning load is the highest. It makes such intuitive sense.” He also went on to mention his three picks in that sector, being Arise Technologies, Opel International (OPL) and Sustainable Energy (STG). Today, Canaccord’s Award-Winning analyst Sara Elford joins the fray with a research report on Arise Technologies. She gives it a $3.50 target, but when she talks about the potential, you know that might just be a starting point. We caught up with her today from Halifax, where she has recently moved ... obviously she likes the ocean as she has moved from Vancouver to Halifax and she suggests, “it’s the 4:30 am conference calls that were getting to me” being a young mother of two. Yes, the time zones can make a difference. But we ask her our favorite question: what are your three favorite stories at this time and she suggests that if you are looking for something that’s timely and topical, you have to be looking at Arise Technologies. In today’s report she writes; “...the company is well into the process of transitioning from being solely a systems integrator/distributor focused on the Ontario market, to a manufacturer of proprietary high-efficiency heterojunction (thin film on silicon wafer) solar cells with a global focus. Arise is very well positioned to deliver dramatic growth over the next year and beyond.” She points out to the two key growth drivers being 1: A ramp up in PV cell production capacity at its German manufacturing plant (currently under construction) to 80 MW by the end of 2008 and 360 MW by the end of 2012 and 2: significant growth in its systems business, driven by the momentum created by the Ontario Standard Offer Program. A second favorite pick and one she has liked for a while although the market hasn’t yet cooperated has been TSO3 Inc., the medical research firm based in Quebec whose ozone sterilizer is suddenly starting to attract a lot of attention with its number of sales. Elford tells us that “it’s an 18-month sales cycle for the firm, so the next quarter should see significant additional sales.” She does admit the stock hasn’t done that well in a market that’s done okay, so she wouldn’t be surprised if over the next few weeks there is some tax-loss selling that could offer some decent prices. For a third stock pick, she goes with Genesis Worldwide that is into the construction business of designing buildings up to six stories high that use steel instead of concrete or wood. She feels this could revolutionize the business that is potentially worldwide and feels it will take a few quarters for people to catch up to this story of a company that’s only newly public. To receive copies of her latest report on both Arise Technologies and TSO3 Inc., please contact Jennifer at jennifer_lagdamen@canaccord.com. If you would like to receive the Late Edition, email Debbie at debbie_lewis@canaccord.com