Lesley Marks

Market: It’s all about small caps right now. Small cap market is very resource oriented. Volatility is in the commodities. She focuses on growth opportunities. She sees the strength on the commodities as well as tech sector.

Specialty paper company. Not a lot of people are talking about forest products. She likes it. Excitement in the story is about a pulp plant that they are converting to a product that will be used with rayon, and since cotton products have taken off, there is a lot of interest in rayon. Company will do well after they convert in the summer. It can be rolled out to other plants.

Were very comfortable with the investment. Recently they fell on hard times due to profitability. They bid too aggressively in projects. Usually new management comes into the business and turns it around but it will take some time. 2 – 3 quarters.

Will be producing near term. Iron ore is a crowded space in Canada. Short-term outlook in markets is volatile. But long-term demand for Iron Ore in China is strong. You have to be willing to ride out the volatility. New Millennium and Champion are alternates.

Street was disappointed. Expectation was for higher reserves. She doesn’t think there is a lot more downside. She would be looking at it as a buying opportunity. If management starts to buy stock, street will have confidence in management.

Rare Earth (she is not familiar with this one in particular): Quotas on exports of Rare earth out of China. She is not as positive on this commodity because it is a quota-related play.

Prefers MSD-T. Positive on this kind of company. Recently they had a flurry of great licensing news, which has boosted it. They recently financed. Feels they over financed. Great balance sheet and great cash flow.

Positive on it. Has had some significant strategic deals but there will be good news flow out of this one. Great cash flow, great balance sheet.

(Top Pick Nov 24’10, Up 43.71%) Was a top pick last time. Still likes it. Positive on outlook for copper. Generally when they move from pre-production to production, you see am example in multiple. If you can ride out this movement you will do well in this name.

Rocky period recently, based on disappointment on earnings and contracts. She is positive on the new management team. Given current value of stock it is best to wait on this one.

This is the one she has chosen of this sector. She likes the asset and the management team. Can be brought into production with lower CAP-X than in Canada. It’s a good opportunity to enter at this level.

Has everything you would want in a stock right now. Copper, right jurisdictions. Problem is operation results. Great stock to own in between results. Over next 18 months she would like to see a joint venture on that asset to confirm it has a future value. Wants to see more consistency with this company.

Likes the platinum aspect and there are very few options. There industrial as well as consumer demand. Balance sheet looks good. Offers growth in production. It was overheated in ’08, which it is below at this point. They are back on track now. They are more likely a takeout target than Bear Creek.

(Top Pick Nov 24’10, Down 28.61%) Concerns were about union negotiations but oil price is now more of a concern. Jet fuel is about 25% of their operations.

(Top Pick Nov 24’10, Down 3.44%) Moving towards production and expect valuation to increase. Feels it is getting hit due to what is going on in Libya.