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Strategies & Market Trends : Ride the Tiger with CD -- Ignore unavailable to you. Want to Upgrade?

To: Rocket Red who wrote (160689)	5/26/2009 1:17:51 PM
From: stonecrop	Read Replies (1) \| Respond to of 313046

It's all good and i don't think Otto would mind a punt over here but i'd like to get full permission as he states in his letters before throwing it out live (that's my reasoning of taking it to the inbox route with marcos which i just told Otto about). It's not a big hush hush snippet but it is part parcel with Otto's 'IKN Weekly'.... I've got an email into him and either he'll go nay or yay. Btw, Otto gave CC an honerable thumbs up yesterday in regards to TRY on his blog.... incakolanews.blogspot.com "Also for the record, thanks are due to Claude Cormier of Ormetal for giving me the headsup and the "Hey check this one out, Otto" on the company. Nice spot, dude." Go ahead, take a bow Mr. Cormier! :)

To: Rocket Red who wrote (160689)	5/26/2009 5:31:46 PM
From: stonecrop	3 Recommendations Read Replies (2) \| Respond to of 313046

<good bad spill the beans> ------------------- Okay, here ya go thread with permission from Otto. I haven't seen many posts surface from you guys/gals if you've taken out a sub, are in the process of taking one out, or are just plain sitting on the fence...what i can tell you after having subscribed for a month is that Otto is certainly no slouch (i know a few of you know this) and is ranked right up there with your favorite NLW who posts here at CD's corner of SI. It only makes sense for the long term loyal supporters of Ormetal to have some fundamental analysis comparison on some of CC's top ten picks....which 'IKN Weekly' shares as well (ie. DMM is a perfect example). You get down to earth hit home analysis for your buck folks (Otto truly sticks up for the little guys out there), that is NOBS! incakolanews.blogspot.com ---------------------- This is a small taste of what humble Otto is all about in regards to the Reuters report (Correa press conference of last weekend), which was misleading if taken out of context. Otto sets it straight for his subscribers... From IKN4 (IKN Weekly #4).... ----------------------- Mining Nationalization in Ecuador "This weekend Rafael Correa is playing host to Hugo Chávez, who arrived in Quito Saturday afternoon and leaves for Caracas today Sunday 24th May. The two leaders signed several agreements and then gave a press conference on Saturday evening. Reuters reported (2) that press conference in the following way: “Ecuador's President Rafael Correa said on Saturday that key sectors of the economy, including oil and mines, must be in government hands. During his first two years in office Correa has taken a tough stand with mining and oil companies, pushing for new contracts more favorable to the state, but has so far shied away from nationalizing any firms. "We will fulfill the goal of having strategic sectors in government hands," Correa said.” At first sight it looks bad news for mining companies in Ecuador, but once the wider context is understood it becomes clear that the Reuters report is being very selective with its facts and unnecessarily alarmist. In fact the current mining law that was recently passed by the Correa government also states that strategic sectors of the country’s mining industry will be state-run or state-controlled. Part of the new mining law involves the setting up of a national mining company to cover the sectors that Correa&Co deem strategic, namely the production of cement, clay and brickworks, masonary stones and other non-metallic extraction industries. Neither Correa nor the new mining law considers the metals mining sector of natonal strategic importance. The phrase “strategic importance” is understood as the supply of materials to the local economy and not the exporting of large amounts of copper or gold to other countries to simply gain via tax revenues. So now that (hopefully) your mind is at rest we can now look for the possible opportunity that this Reuters report gives us. If the market next week decides to take this news as a signal that Correa is about the nationalize everything (and the English language media certainly enjoy any chance to put the boot into Ecuador and other leftist states down here), it may present a gilt-edged buying opportunity in Dynasty (DMM.to), Corriente (CTQ.to) (ETQ), IAMGOLD Corp (IMG.to) (IAG) or your own personal favourite Ecuador mining play. Personally speaking I look no further than DMM.to as it represents great value on a fundamental basis and local micro-political risk lies somewhere between zero and negligible. I have stated in the past that a sub-$4 price would see me adding to my position and I now reiterate that call as it’s just possible that a panicky and badly-informed market gives us a low entry point. As for trading advice, if it doesn’t come and the market is assured by some kind of aclaration or update (or simply ignores the news) then so be it. If it comes at all, then good. But if it comes quickly, don’t just grab the first sub $4 number you see because if panic sets in then a bargain could become a really impressive bargain. Watch out for any flash updates if the hoped-for opportunity arises."