RE: So Ziggy*ATNA RESOURCES (T-ATN) $0.70 n/cAtna Resources PINE VALLEY MINING (V-PVM) $4.81 -0.09
STRATHMORE MINERALS (V-STM) $2.15 -0.05
We’ve been big believers for some time of Don Coxe’s theory of
how significant the impact of China, India and developing Asia will
be upon the world’s commodity prices.
That’s particularly affecting mining stocks and oil and gas stocks.
But as anyone with grey hair knows, nothing ever goes straight up
in the markets forever, or straight down for that matter and with the
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huge rise in some of the mining and associated stocks, many ofthose sector stocks got overly extended. Of course in hindsight,
we’ve seen a correction for quite a while now in some of the commodity-based stocks.
We do some charts here to show that many of the gold stocks
have gone no where in the last four months and while Atna Resources
is admittedly a rather junior story in the gold sector, its stock
Pine Valley Mining
shows you that many of the gold stocks peaked back in Novemberand December when gold was flirting around $456 an ounce.
Since then, gold has dropped $30 and $40, and taken the luster offthe sector.
We point to the big gold debate between Brian Acker and John
Embry (who used to be many people’s favorite gold bug) and notethat almost no one watched that great debate. A year ago everyonewas tuned in and desperate to find someone’s new gold stock pick.
Now? No one cares.
www.pinevalleycoal.com Also, being carried along in the big mining sector is coal. Stocks
such as Western Canadian Coal (WTN), Pine Valley and many others,
had a huge run, and with oil and energy stocks heading up, suddenly coal was regaining luster. But many of the coal stockspeaked around January and have been retreating since. Stocks
such as Pine Valley which ran last year from $1.00 to as high as$7.00, has since corrected by almost 25% and the question mightwell be, just when does this correction end?
Strathmore Minerals Also we do a chart of Strathmore Minerals, albeit a junior, but still
when you’re talking about uranium explorers, Strathmore is on
most people lists as a potential buy. Strathmore flirted with $3.00 ashare two months ago and has corrected 30% - 40% since that time.
Once again, this is quite a sector correction in gold, coal, uranium,
and in the last month, most oil stocks saw their peak and have beencorrecting as well.
So when are the corrections over for these groups?
For fans of Don Coxe, please note his big concern for elections in
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Europe which could see France run against the trend with the Euro-
Group, could spell big troubles for the Euro and send gold into a bitof a spiral down trend. Coxe is a much bigger fan of base metalsand oil than he is with precious metals which he considers as asafety mechanism.
VAQUERO ENERGY (T-VAQ) $7.65 -0.19
Vaquero Energy
A super successful stock over the last few years has been Vaquero Energy, with its Pinnacle plays in the Pembina area. All of a sudden, one of
Bill Powers favorite stories is re-jigged and merged today with Highpine
Oil & Gas and he’s having to re-do his list of three favorites. Still number one (with Vaquero gone) his top pick and still nearest and dearest tohis heart is TransGlobe Energy (TGL) with their ongoing developments
in Yemen. Gastar Exploration (YGA) comes in at number two, moving uphis list as he gains confidence that their huge/deep gas play in Texas,
which will take many years to develop, looks better and better. A third
play and one he calls speculative, is Oilexco (OIL) and while a little disappointed about their reserve numbers and the banking deal not being
done yet, suggests they have 12 months of what should be exciting ex
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ploration ahead of them. What we find of interest now, is his take on
natural gas, which has underperformed oil so far. He suggests that with
deliverability for North America down, and two mild to cool summers ina row, if we should have an average summer...there is simply not going
to be enough gas around and we could see $9.00 easily by the fall. We
are a big fan of Powers and for those who would like to hear him yourself, he’ll be speaking a few times at the Calgary Cambridge House Conference on Sunday and Monday of this coming weekend.
looking for a potential spike in oil prices to as much as$105 a barrel. They are also raising their prices for oil
expectations for much of the next two years to $50 to$55, which is way above the industry average. If you
would like to receive a copy of this report, just email
Sandra at: sandra_wicks@canaccord.com and we will
have a copy off to you right away.
In the report there are a couple of tidbits that we findof interest, for a brokerage house to be writing….some
of those tidbits are: Firstly, at what price will American’s start buying gasoline? They suggest possiblynot until the amazing price of $4.00 a gallon. Secondly,
they suggest that adding supply to the “old supply/
demand” equation is a five to ten year proposition and
it takes that long to find major new quantities of supplyand bring them on stream. Thirdly (and this is a big
point) is the concern about the Mid-East. They point tothe Mid-East as one of the few areas of the world to
experience massive population growth over the last
while but also a lack of a diversified economic base
and the government that exists there are not representative or responsive to underlying populations.
Disclosure: * Atna Resources : Canaccord Capital covers this stock and has a Speculative Buy rating on it. (Speculative buy: Stocks bear
significantly higher risk that typically cannot be valued by normal fundamental criteria. Investments in the stock may result in material loss.)
We finally got copies of the Goldman Sachs Report,