JAG Mines Ltd V.JML.H

Josef Schachter

[Ironmask1]

I read in an interview with David Pescod from Canaccord yesterday that he told people to take some profits in June.
"So when you look at all of it, we were telling people (in June)to take profits in a lot of areas including
the Quebec stocks that we thought had gotten a bit
ahead of themselves and of course the Colombian oil
stocks. So there were things that got ahead of themselves
and of course they have now corrected savagely."
As we have seen yesterday,  it's clear that people have started to realize that the Quebec stocks were oversold
and that people starting to build up a position.

Outside of owning oily-focused exploration stories you want to be focused on natural gas stocks
now particularly because the commodity board ratio is very cheap (oil to gas). Secondly, with the clean air issues that the Americans are talking about, you need to use the cleanest burning fuel which of course is natural gas. Third, hurricane season activity is August and September. It peaks in September. The first hurricane is on its way called (Big) Bertha, and that could drive natural gas prices to maybe $18 or $20 per mcf on a spike during the summer and of course versus $12 today, which would drive the stocks materially higher.
JS says that we are very close to a bottom. In terms of putting that in context the S&P/TSX Energy
Index is currently at around 400, we could see 370 to 380
as a target before the correction is over. We were at a
high of 470 in January – we’ve taken off 70 points, so
there is still maybe another 7-10% left on the downside.
So we are recommending in the monthly piece that we
are just putting out (in the new Maison Monthly) we are
saying on the top of it – “Buy Favorite Ideas on Market
Weakness”.

conclusion : GET IN BEFORE THE HERD
GLTA