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To: ms.smartest.person who wrote (3018)	2/22/2008 5:17:03 PM
From: ms.smartest.person	Read Replies (1) \| Respond to of 3198

&#8362 David Pescod's Late Edition February 21, 2008 OILEXCO INC. (T-OIL) $16.27 +0.37 Over the last few months, we’ve gone through the kind of stuff you usually experience only once a decade. It’s been unbelievably ugly. Just six months ago when you heard companies like Merrill Lynch saying they might have a $2 billion hit on their books that suddenly becomes $4 billion, that when they get around to announcing the final facts and it’s an $18 billion hit, you can understand the dimensions of the disaster that was hatched on Wall Street. We’ve had blue chip banks lose 50%, but who would have thought that here in the natural resource sector with the huge demand for resources from Asia, that we too, would have been hammered and hammered badly. Phases like this in the market always tests what a person is made out of and we print here, a chart of Oilexco which has been one of our favorite stories mainly because so many of our favorite analysts have liked the story. In the hammering that the market took, this stock got as low as $10.00. There were those that just couldn't handle the ugly market and bailed and there were those that stepped up to the plate. Imagine those lucky people who bought under $10.00, how they are doing today. Today Oilexco is back over $16.00 and for those who stepped in to the market, it’s been quite a reward. For those that bailed, ouch! We are probably not completely through this ugliness (and there are still a lot of stocks that have been clobbered) and I suspect there are more months of volatility left, but in volatile times... CANPLATS RESOURCES (V-CPQ) $3.67 -0.05 ENDEAVOUR SILVER (T-EDR) $4.02 -0.09 It was just a few weeks ago that we interviewed Brad Cooke, veteran mining man out of Vancouver and also the major guy behind Endeavour Silver. He’s an experienced player in mining circles in Mexico and he was adamant that we should be talking about another explorer down there called Canplats, that he thought was going to do quite well. We are glad we listened to him, particularly since Canplats has gone up almost 60% in just a few weeks since we published that interview. Today, we touch base with Brad again for some thoughts on the general market as well as Canplats. It is not often I get invited to expound on my favourite subjects, gold, silver and precious metal stocks. So when Dave asked me if I would contribute a few words on Canplats Resources (one of the better-performing gold stocks in recent months) and Endeavour Silver (a silver mining company I launched barely 4 years ago), I couldn’t say no. But first, I think it would be useful to reflect on the broader precious metal and equity markets because I think they offer some obvious clues as to the near-term directions of the junior resource stocks. The universe of junior resource equities has been turned on its head in recent months by several conflicting forces. Last summer, we entered the “normal” summer sell-off, only to be hammered by the ABCP credit crisis in August, that immediately dropped these stocks back to their 12 month lows and drained all liquidity from the junior markets. Base metal prices had already slumped into a major correction, and market gurus were predicting a US recession for 2008, so there was not a lot of good news to face the new year. By the time the Cambridge investment conference in Vancouver rolled around in January, the junior resource equities seemed to be in a state of animated suspension. The gold and silver prices were continuously testing new highs and yet never in this six year old commodity cycle has investor and company confidence been so low. As one market commentator after another preached “doom and gloom” from the podium, one could not help but laugh at the absurdity of it all. And therein lies the crux of the matter. We have not seen such a major disconnect between precious metal prices and equity prices since 1993. The precious metal prices are high and going higher. The precious metal equities are low and going nowhere. They both cannot be right. Something has to give. Either the stock prices are predicting the next correction in the metal prices, or the metal prices are predicting that stock prices will play catch-up as soon as the credit crisis passes. My bet is firmly on the latter. Liquidity has flooded back into the major markets. US dollars are being printed and “dropped from helicopters”. A new inflation boom is now unavoidable. In a year’s time, I think we will be able to look back and see that this was a historic opportunity to purchase precious metal equities. So where have I been putting money? Within my portfolio, there are at least two stocks that I think have double digit potential, Canplats Resources and Endeavour Silver (warning - I am an insider) - more on these tomorrow. To receive the Late Edition and be on our daily circulation simply e-mail Debbie at Debbie_lewis@canaccord.com and give your address, phone number and e-mail and we’ll have you on the list tonight.