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

To: ms.smartest.person who wrote (3043)	3/17/2008 7:31:09 PM
From: ms.smartest.person	Read Replies (1) \| Respond to of 3198

&#8362 David Pescod's Late Edition March 17, 2008 MAGINDUSTRIES CORP. (V-MAA) $2.40 -0.23 YAMANA GOLD (T-YRI) $19.09 -0.03 BANKERS PETROLEUM (V-BNK) $1.40 n/c It’s St. Patrick’s Day so we are supposed to see a lot of green, but our screens were just about all red...it’s an ugly day as we get the spillover from the Bear Stearns disaster on Wall Street. Interesting to see how the Wall Street Journal and Jim Cramer were so wrong on that play. For those of us looking for a little hand holding today, Peter Hodson of Sprott Asset Management (he runs one of the best performing mutual fund in Canada for Sprott) was on BNN and some of the comments he made today about the market in general are interesting. What he would do at a time like this? His answer is “just about nothing”. He would just continue to look for good stories and hope it ends soon. He had some interesting comments regarding Oilexco we thought, a story he has followed for a while as he wouldn’t be surprised to see it bought out down the road and in this kind of a market, $20.00 might do the trick. He also makes the comment that he wouldn’t be surprised to see Oilexco try doing some buyouts of its own and suggested Antrim (AEN) and Ithaca (IAE) as two likely candidates. But his top pick today was MAGIndustries, and we asked him to write a little note to us describing exactly what he thinks of this company. He writes, “Mag is like a mini "Canadian Pacific" of Africa. It has a diverse set of attractive assets, just dying to be spun out. The company has taken the first steps in doing so, with a $100 million raise for its Mag Minerals Kouilou (potash) subsidiary. Its deposit is one of the most attractive potash resources coming on stream in the next few years. MAA also has attractive forestry assets, power generation and metals assets. All have decent revenue potential, with forestry and energy being the closest to current revenue. Most of their assets are in the Republic of Congo. Note this is NOT the DRC, it is a completely different, much more stable country. The company is the largest non-government employer in the country. Combined, assets of the company are potentially worth much more than the current share price, with Potash being the most significant and near-term value driver.” ACCRETE ENERGY (T-GZ) $4.85 -0.09 STERLING RESOURCES (V-SLG) $2.57 -0.08 OILEXCO INC. (T-OIL) $14.27 -0.45 We caught up with Josef Schachter and his partner Jason White, the quiet one of the dynamic duo and asked him what’s new and exciting in the oil and gas patch and where are they hiding from the ongoing bank/ brokerage house disaster? The two partners seem to have the four similar names at the top of their list as number one picks whenever we touch base with them. This time Jason says, if he could only buy one right now, it would be Accrete Energy because of the stock price being so cheap, gas prices going the right way and Accrete benefiting from some of the changes in Alberta’s tax regime. Josef goes with Sterling Resources now that it’s off restriction and he makes two points: First, that Sterling is currently trading at what the company will cash flow in the year 2012 making it cheap, but more interestingly he suggests they will be drilling Block 210 sometime in May/June, a liquid rich play that he suggests has enormous potential and could increase Sterling’s NAV by $5.00 to $8.00 upside should it hit. Unfortunately, he only gives it a 15% chance of doing so. As far as one of their favorite ongoing stories, Oilexco, remains one of them and they suggest strongly (and after listening to the video we say this is a must) that Oilexco President Arthur Millholland presented at Martin Molyneaux and his top teams First Energy conference. There are a slew of companies part of this presentation, but there are a couple of points in Millholland’s presentation that I think you will enjoy. First is his firsthand look at operations in the North Sea, the problems of attracting people and rigs and the potential down the road plus his prognostications for where the company could be in two years. Some comments about the Moth play should also be listened to closely. To listen in, just go to www.fistenergy.com and click on “details” from East Coast Canadian Energy Conference March 12-14. On the left hand side, click on “webcast.” 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.