Nothing but Good News
Thursday, March 23, 2006
Well this week so far has turned out to be very
interesting, and good to those who were able to buy our before mentioned stocks.
Canwest on Monday shot up on the release of more good drill results as well as a
report that focused on the company and a speech by a Saskatchewan official
speaking on the tar sands in the province. I believe it is apparent now to all
that with the future listing of this stock on the American Stock Exchange
pending and most likely to be approved (come on the stock trades over a million
shares a day, and has a powerful uptrend) the stock should have no problem
reaching $10 per share. In fact it could do this much quicker than we
anticipated once it is listed because now mutual funds will be able to purchase
the stock, and there will be those who will get burned by trying to be
intelligent by shorting the stock. My view is that this company is a train
traveling down a mountain at full speed (we all know how long it takes trains to
come to a halt!) as opposed to a car. The only way the forward momentum on this
stock is halted...or the upward trend is broken...will be for a steep decline in
the price of oil or some unforeseen political event in Saskatchewan. Ultimately
after the company has completed its drilling program I believe that one of two
events will occur:
1.) that it will be purchased by either an Indian or
2.) the company will sell part of its concession at a very
rich price in order to move forward with development.
Currently our stand on the stock is that you should
ACCUMULATE by buying ON THE DIPS. We also believe that this stock will still hit
$10 by the end of the year, and look forward to its listing on the AMEX.
Now a second surprise-they seemed to come in pairs this
week- was that some of our uraniums shot up dramatically on Monday. There was
not any news coming out of any of these companies around this time so we should
give credit for this steep rally to the recent acquisition of Roughrider Uranium
Corp. (a privately held junior exploration company) by Hathor Exploration. This
deal was announced on Friday, promptly sending shares of Hathor higher by 100%!
A double...in one day...on an acquisition! Plainly a bullish sign for this
sector, because it tells me that investors view these purchases as “cheap” (thus
the sharp rise in the acquisitor's shares) and necessary in order to achieve
mass scale in and industry that could be labeled-dare we say- oligopoly.
CanAlaska (CVV.V or CVVLF) shot as high as 30% on Monday
before settling in at around the 20% level. This is due to their portfolio of
landholdings that mirrors Roughrider's, however it must be noted that their
properties are larger by acreage, and APPEAR to be in more desirable areas (in
other words closer to existing mines and “on trend” with them as well).
Another one of our recommendations, Strathmore Minerals (STHJF),
is very similar to CanAlaska in that they are land rich. However, Strathmore has
over 100 million pounds of Uranium in the ground that is a historical resource.
Now they only need to develop this in order to begin taking advantage of the
high price of uranium...however the more they discover within the ground the
more they will be worth in the marketplace.
There will be more to come on all of these companies, but
today I wanted to take some time to explain the recent dramatic run-up in some
of these stocks. At this point we we would be holding our small uranium
companies and wait to buy more on a dip. It is not advisable to sell your shares
and hope to repurchase at a lower level as bull trends are just that...trends
that move from the lower left to upper right and no one can really tell when
there will be a breather. So lets keep our exposure to these companies at this
time, and add to our positions periodically.
It is our opinion that CanWest is a stock that can be
bought all the way up to $7.50 and at that point we will review our options
based on what has, or has not, happened to further decide our best options.
Canwest Petroleum*-----CWPC----US$4.90___+$1.53 or+33.22%
Cameco----------CCJ----------US$35.91_______-$1.42 or -3.95%
International Uranium---IUCPF----US$5.45_____-$.26 or -4.77%
Paladin---------PALAF--------US$2.77________+$.28 or +10.11%
Strathmore Minerals-----STHJF----US$2.25____+$.22 or +9.78%
Canalaskca Vent.*----CVVLF---US$.449___+$.071 or +15.81%
Titan Uranium---------TUEFF---US$2.11_______+$.14 or +6.22%
*Denotes a Company in which I currently own stock in before
this article has been posted on the blog.