A Comment -- General Comments From an Expert (A Commentary)

Has a good management team. The assets they were given were high decline gas properties. Have been able to keep production relatively flat, but expectations on future production is not very positive. He's been lightening up his positions.

Teaming up with StarPoint Energy Trust (SPN.UN-T). This is a good deal for them. They have never been a Top Pick of his.

Problem with commodities and the materials sector is that we are very likely this year to see US interest rates continue to go up which can choke off the US economy. If the US economy slows down, we are likely to see the worldwide economy slow down. Europe is in bad shape and if we see both Europe and the US both slow down, where is the demand for more raw materials going to come from? China? China exports most of their stuff to the United States. He’s bearish on commodities.

In the short term, we are in a bear trend. Long term trend is positive for gold.

There was a recent breakout of a gap. Just beginning at the bottom of the weekly cycle. Money flow has turned positive and it's trying to improve its relative outperformance. Now into a breakaway gap.

Merging with Starpoint Energy Trust (SPN.UN-T). A positive for APF unitholders. Starpoint management has an excellent track record. A lot of its production is early stage which generally creates higher risks, and acquiring APF diversified their asset base for a more stable base. Longer reserve life. Better payout ratio. To play this, Buy APF rather than Starpoint.

Very technically competent management. Recently announced a proposed acquisition of Resolute Energy (RSE-T) basically increasing their production from 10,000 barrels a day to 18,000. This has also diversified their asset base with a much broader drilling program.

The deal with Falconbridge (FL-T) is a great deal as it brings two companies that should be together, together. From a smelting point of view, margins are going to get higher and higher. Good level to buy.

If he owned, he would sell it at this point. Take the cash and if you want to buy the basket of securities being offered, you can pick and choose.

Believe it is going to get taken out by somebody. Would be inclined to go with the share that's being taken off the street and stick with the old shares.

Buying the minority shareholding of Falconbridge (FL-T), possibly to look more attractive to the Chinese buyers.

Just had a double top. It's because we're in the corrective phase. Expect it to go sideways for the balance of the year. Use a stink bid (10/20% lower) that you don't think anyone will sell, but if they do it's a price you're happy with.

Today’s subject is International Markets and very few North American stocks are being discussed. Because we only cover North American Exchanges, this is the reason for the short listing today. Top Picks and Past Top Picks where on foreign exchanges, so nothing to show. SORRY!

Believes the correction is now over. It started 6 weeks ago which is just about right and we are now in the beginning of being very oversold. Statistics shows bulls were close to 50 and bears about 25 two weeks ago. Last week, bulls were 25 and bears 50. Complete reversal of sentiment in 2 weeks. Bull market still has a year to go. Had a move and now going through a correction. Should have another move going towards August, then maybe a pause, October is always a difficult time for the market and then should continue. Chart shows A) leg up in 2002 B) correction into ’03 C) very strong up-leg, longer than usual in ’03, over 12 months D) another correction at the beginning of ’04. This correction usually only lasts 3 months, but we had close to 6 months. Everything is being “right hand translated” meaning longer than usual. Therefore believes this leg that we are going into will also be longer than usual. It will be oil & gas and material stocks.

Not held in their active funds, but has to have it in their index portfolio, but not by choice. There are more suitable names. Yield is around 16%. The trust has high costs, low RLI.