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

A little worried about the metals market in general. Heading into a seasonally weak period. If global growth slows down, demand for all metals is going to come down.

Finally working out its problems with Falconbridge (FL-T) and starting to realize some value. There was a fly in the ointment with the US hedge fund interfering, but feels there is no concern. Would prefer other areas.

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!