Latest Stock Buy or Sell?

We were in this secular bull market in commodities driven by the emerging developing world and now we have a shock factor on top of it. You have to pull those 2 things apart and make sure you analyze the right pieces. The secular trend in resources we have from the developing world is ongoing but the middle east is an event and should be a shorter term thing. Don’t get caught up in it too much. He has started to lighten up on oil stocks.

As it pulls off at this time it starts looking attractive but he prefers in the $30’s. They are betting on the big coal/steel market going forward and he just finds there is not enough certainty to it. You are really exposed to any sort of softness or disruption in China.

One of the best oil companies in Canada. What is extraordinary is acknowledging that they want the big oil resource plays and how they can add primary, secondary and ternary production and they have an incredible resource that they can keep adding and expanding to products that they have already got. Would buy on a hiccup.

One of the biggest copper mines globally. (Mongolia.) Looks like they have the ability to put it into production. Copper looks like it might want to come off so not the perfect time for them..

Big nickel deposit in Canada. He did a flow-through for them last year and is keeping it. Have found something but it will take time to put it into production. Expects that years from now this will be a significant mid-cap producer.

Have a very good quality gold asset. Gold stocks got extremely overheated going into the end of the year. Now valuation is starting to look attractive. They are able to up the resource calculation this year. Stock is now trading as an intermediate –senior company at 1.4X net asset value. They now have to show that they can operate the assets correctly and can add to the assets and categorize itself as a growth stock. They might not make the amount of money you think they will.

Doesn’t particularly like some of the political risks but they’re diversified enough that any one piece is not going to take them down. Incredibly profitable company and are working on some good growth projects. Looking at it seriously.