StockBullz.com

Dear Canadian Stock Investor,

It was quite a rollercoaster ride the past week on the market. We dropped over 170 points on Thursday and then we recovered most of it on Friday.

It is yet another piece of evidence that our raging bull market is not going to be straight up. Sure the trend is up, but not straight up. I am sure we will have many more 150+ down point days in the future. But I think we will also see some 150+ point up days as well.

The factor that is going to decide how much you make or lose in this market will be yourself. That’s right, do you have the guts to stay in the game with this type of volatility? I know it won’t be easy at some times but I think this will be the key to making the most money possible over the next year or two.

I think a great example of this will be my top two picks: Nova and Silvercorp. For the past two weeks, they haven’t been moving much. Nova is even down quite a bit off its highs. 

Now some of you may be getting impatient and you might want to start investing in faster moving stocks. But like I said, you usually can make the most money if you find very high quality stocks and stick to them for a while.

Short term stock movements are extremely unpredictable so you should try to do yourself a favor and try to stick with your picks for longer periods of time.

Of course, I’m not the one making your choices. They are yours to make. I’m just suggesting strategies that have made me and many other successful investors a ton of money over the years.

This flows into my next topic. Whatever investing decisions you make, you must understand that they are solely your own.

So, if you read about a stock I’m researching or liking, and it tanks, it’s not my fault, it’s yours.

If you read about a stock on my site or somewhere else and you buy it and it goes up, you shouldn’t give too much credit to the source of the pick. You should mainly congratulate yourself for making such an outstanding pick.

I am just writing this because although I haven’t made any terrible picks on this site yet, I am sure it might happen one day.

And I am sure some of you will be looking to blame someone. And if you got the idea from my site, you will be looking at blaming me.

But the truth is, I didn’t click the buy button to buy the stock for you, you did. I merely did my own research on it and presented the situation to you as I saw it.

Likewise, when I profile a company, you buy them and they go up, you should be giving yourself a nice pat on the back.

You took a risk (every investment carries risk, just depends how much) and you profited. Good on you! I deserve a little bit of credit for the research, but you deserve most of the credit because you took action on the information.

Plus, remember that all the information on my website is just my opinion and is not a buy or sell recommendation.

Getting on to some stock pick analysis, the most active company this week had to have been Silver Wheaton. Not only did they announce a 165% increase in earnings, but they also completed a $200 million financing and they appointed a new CEO.

Best of all, here is what the previous CEO said: “These results are spectacular, obviously assisted by continuing strong silver prices," said Eduardo Luna, Chairman. "We expect our second quarter to be even better, as a result of silver sales starting up under our new Yauliyacu silver contract.”

Regarding the financing, “Silver Wheaton plans to use the net proceeds of this financing to pay US$40 million due to Glencore International AG under the silver purchase agreement and to repay bank debt associated with its recent silver acquisition from Glencore.”

Let me just remind you that “Silver Wheaton is the only public mining company with 100% of its revenue from silver production. The Company expects to have annual silver sales of approximately 15 million ounces in 2006, increasing to 20 million ounces by 2009 and thereafter.”

And regarding the new CEO, “Mr. Barnes brings more than 20 years of senior management experience to the role and, in his previous mandate as Executive Vice President and Chief Financial Officer of Goldcorp Inc. (and, formerly, Wheaton River Minerals Ltd.), helped build one of the best performing precious metal mining companies in the world. Mr. Barnes was also the Executive Vice President and Chief Financial Officer of Silver Wheaton since its inception in 2004. Prior to his role with Goldcorp/Wheaton River, he was President and Chief Financial Officer of Crew Development, where he was instrumental in building the company over a five year period. Mr. Barnes is a Chartered Accountant and holds a BSc in Economics from the University of Hull, England.”

These new announcements make me extremely excited about Silver Wheaton’s prospects. I think they will easily hit $20 by the end of the year. But keep in mind that a better way to play Silver Wheaton could be through its warrants. By buying these, you get up to 1.73 times leverage on any movement the stock makes.

If Silver Wheaton’s share price goes up 50%, you warrants will have appreciated approximately 87%. Just keep in mind that all movements are leveraged. I doubt this could happen but if the share price went down 20%, you would have actually lost about 35% on your warrants.

I am very excited to tell you that I will be attending the 2006 Calgary Resource Investment Conference this weekend. I will do my best to get as much exclusive material as I can. I will get updates from Cathy about how Silvercorp is doing and I will try to get updates from Nova and as many other companies as possible. I think we will see a huge burst of news releases too with companies trying to be the “talk of the show”. Could Nova finally release their first drill results? Maybe…

That’s about it for this week. Thank you for taking the time to read this and I wish you luck in your investing decisions,

Mike

P.S. Please feel free to forward this to all your investor friends. I don’t advertise but I think I provide a lot of content and research you won’t find anywhere else on the web so I need you to do me a favor and spread the word!

*Note: Most of these picks were recommended on my old blog first.

Disclaimer: This letter is merely someone’s opinion. It should not be taken as investment advice. Through viewing this publication or accessing our site, you agree to hold Stockbullz.com, its operators, owners and employees harmless and to completely release them from any and all liability due to any and all loss (monetary or otherwise), damage (monetary or otherwise), or injury (monetary or otherwise) that you may incur. It’s your money, so you are ultimately responsible for any gains/losses you may incur. Do your own due diligence! Writer may own positions in some of the mentioned stocks.