Stockbullz.com Weekly Stock Newsletter #2
Stockbullz.com Weekly Stock Newsletter #2
March 24, 2006
“Wall Street people learn nothing and forget everything.”
- Benjamin Graham
Dear Canadian Stock Investor,
It’s been a pretty good week for my picks. Silvercorp managed to rack on another 49% this week.
My other Silver pick, Silver Wheaton, packed on another 27%.
Most others are up slightly. Please glance at the chart at the end of this letter to see the full list.
When you do look, you will see a new addition to the chart.
It is Anglo-Canadian Uranium (TSX-V:URA).
Please note where it’s placed under: Speculation; because that’s exactly what it is.
I bought a small amount of URA today and now let me explain to you why this company might go up.
They have 8 (maybe 9) projects that they own right now. Although you’d think they would only have uranium because of their name, they also have Gold, Silver, Diamonds, and Polymetallic.
Here is the full list:
- Gold in south-central British Columbia (Stirrup Claims)
- Gold/polymetallic in southern British Columbia (Lucky Boy Property)
- Gold/Copper in south-central British Columbia (Zeus)
- Diamonds in the Otish Mountain area of central Quebec (Eastmain Claim Blocks)
- Uranium in eastern Quebec
- Uranium in Utah
- Uranium Concession in Niger (applied for)
- Gold/Silver in Durango State, Mexico (Las Coloradas)
Now let’s look at management:
Their CEO is Len Harris. “He is a well-known and highly respected business entrepreneur who has founded and/or been involved in the development of a number of successful businesses over the years, mostly in the natural resource sector. In the late 1960's he started his professional career as a registered representative with Hemsworth Turton & Co. where he became an assistant to the head trader in less than 2 years. From 1972-1989 Len was registered with Jones Gable & Co. where he rapidly became a top tier producer in the firm. Mr. Harris completed the Prospectors Course conducted by the University of British Columbia to enhance his knowledge of mining and geology, and proceeded to specialize in mining and oil & gas securities. Over the course of a couple of decades, he sponsored and acted as fiscal agent for a number of successful natural resource companies, raising millions of dollars for numerous exploration projects.”
This is taken straight from their presentation file. I wish they were a bit more specific about his past but it’ll do for now.
The rest of the management crew seems even more fit for managing a succesful junior resource company.
Some of the other management people have worked for Noranda, Newmont, Rio Tinto, Anglo American, De Beers, Diamondfields Resources, and Cogema in the past.
One of the men on the Advisory Board, N. Ralph Newson, is even a director of the Prospectors’ and Developers’ Association of Canada (PDAC). They’re the people who do the PDAC conference every year. In the coming years, I am sure that Mr. Newson will help Anglo-Canadian get maximum exposure to potential resource investors.
Management is the most important factor in a junior resource company. The more I look at Anglo’s team, the more I think they will do very well. All these men are very experienced and have done very well in their careers.
I think that although they have done well, they want to hit it big at least once in their life. So they have come together to form something that has the potential to make them extremely rich in a relatively short period of time (a few years).
Drilling on their Stirrup Gold property in British Columbia will begin in May. They also claim that “These claims have similar geology and are of the same age as the Round Mountain Deposit in Nevada which has produced some 10 million ounces of gold.”
They say they are “well financed to carry out an exploration program early this year. This program will begin with intensive prospecting, geochemical and geophysical surveys, followed by diamond drilling as warranted” at their Skoonka Creek property.
“The Company has acquired a 2100 hectare uranium property in Otish Basin in Quebec known as the Big Mac claim, which adjoins claims owned by Cogema and are partially covered by an airborne magnetic signature that also covers most the Cogema claims.
The Otish basin was actively explored for uranium and thorium by several major companies during the late 1960s and through the 1970s. Several uranium-thorium showings were discovered and staked, but were subsequently abandoned coincident with declining uranium prices.”
When looking for properties, it is best for juniors to find areas that were about to be developed a long time ago but their owners decided to abandon that idea when commodity prices fell. This Otish basin is a perfect example of this.
“[The Locuist Uranium Mine] represents the first of several former uranium producers the Company intends to acquire and evaluate for production. The option covers two blocks known as the East Canyon Wash area, which includes the former producing Locuist Mine. The mine was operated by Atlas Mining Corp, but was shut down when nuclear energy fell out of favor after the Three Mile Island incident.”
This could be a great property for Anglo and remember that “A uranium/vanadium processing plant is located near Blanding, approximately 50 miles from the Locuist property.
In May, Anglo should be receiving approval of their concessions in Niger, Africa.
As you can see, unlike many comparable junior resource companies, Anglo is not a one trick pony. They have many properties that could yield large dividends in the near future. If they are unlucky and some property ends up being a dud (which could happen), they have many more to develop.
Anglo’s 2006 exploration budget sets aside $810,000 for 5 of their properties. I am also very happy to see that they have set aside $200,000 for property acquisition.
After their recent financing, Anglo should have 23,244,000 shares outstanding (29,843,322 shares fully diluted). However, about 13,500,000 shares are closely held by management so the public float is much smaller.
Anglo-Canadian Uranium is a very tiny company right now but they have the right projects to skyrocket their price with good drill results. The risk is high but the potential reward is higher in my opinion.
Keep an eye out for them in the coming year!
For more info, please visit their website.
(Note: I have not had a chance to phone their Investor Relations yet. I will do so early next week. Rest assured that after my talk with them, I will tell you what I think about them and the company’s future.)
I would also like to let you know about 3 sites that I have been working on the past week:
Basically, I compiled a list of all the companies (that I know of, if I missed a few, please let me know) in their respective sectors and I added them to a news aggregator that scans each company for breaking news.
When there is a news release, it gets automatically posted on the front page.
I think these sites will be extremely useful to us resource investors. I will be using them for my own research but I’d like to share them with you.
That’s about it for this week. I wish you luck in your investing decisions,
Mike
P.S. Please feel free to forward this to all your investor friends. I don’t advertise but I think I provide a lot of content and research you won’t find anywhere else on the web so I need you to do me a favor and spread the word!
| Stock | Date Recommended* | Price Then ($) | Price Now ($) | Return (%) |
| Top 2 Picks |
|
|
|
|
| SVM | Jan. 26, 2006 | 5.82 | 15.70 | +170 |
| NUC | Dec. 23, 2005 | 1.60 | 3.73 | +133 |
| Solid Growth |
|
|
|
|
| SLW | Jan. 3, 2006 | 6.85 | 13.14 | +92 |
| Speculation |
|
|
|
|
| PLY | Jan. 19, 2006 | 0.51 | 0.92 | +80 |
| MSV | Mar. 5, 2006 | 3.84 | 3.81 | -1 |
| URA | Mar. 24, 2006 | 0.65 | new | new |
| Ideas |
|
|
|
|
| PDN | Dec. 8, 2005 | 1.70 | 3.80 | +123 |
| UUU | Dec. 22, 2005 | 1.93 | 2.99 | +55 |
| ABG | Jan. 4, 2006 | 1.73 | 2.99 | +72 |
| BSKO | Dec. 11, 2005 | 1.30 | 1.73 | +33 |
| CEK | Dec. 11, 2005 | 2.28 | 3.44 | +51 |
| CNS | Dec. 17, 2005 | 0.90 | 1.15 | +28 |
| POE | Dec. 17, 2005 | 2.22 | 3.15 | +42 |
*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.