e-mail: debbie_lewis@canaccord.com
e-mail: david_pescod@canaccord.com
GENERAL MOTORS
INTL. BUS. MACHINES
HARLEY DAVIDSON
DOW JONES
General Motors
(NY: GM)
(NY: IBM)
(NY:HDI)
(NY:DJI)
April 15, 2005
$25.81 -0.85
$77.16 -6.48
$45.84 -1.36
10,080.34 -198.41
Panic selling? Monday could be interesting
From time we take a little razzing because we don’t follow any purportedly
blue chip stocks. While we are not having a particular amount of joy in
either junior mining or with the big correction in oil and gas these days, the
big boys are getting absolutely trampled as well. Who would have ever
thought that major brokerage houses would be talking about the possibility
of General Motors going bankrupt, but that’s what’s going on. The five year
chart on GM shows you that there hasn’t been many people who made
money on that stock lately and meanwhile, their $200 billion in bonds, may
be about to be graded as “junk”. Go figure. GM is really being hurt because of health care costs that now work out to $15/person. Meanwhile,
IBM comes up with disappointing earnings. The Dow Jones has been hammered now for several days in a row and is not too far from going under
10,000. The Dow is now down almost 10% for the year, NASDAQ down
12% and no one is particularly happy. The only thing that have American
Investors happy in the last few years is real estate and with talk of interest
rates going up Business Week speculates on what could happen if mortgage rates do go up...and that’s not very pretty at all!
www.gm.com
STRATHMORE MINERALS
(V-STM)
$1.69 -0.06
We had done a piece yesterday on how many of the junior uranium
explorers have been smashed of late and Dev Randhawa, President of
Strathmore Minerals gets a hold of us from a uranium conference he’s at
in Beijing (of all places). His comments to us are: “uranium in the
ground is being valued at $0.50 Cdn. per pound for Strathmore (minus
the cash)” Strathmore, he points out, has $40 million cash in the bank.
Dev also tells us that while many commodity prices had a bit of a correction in the last while, uranium is the only commodity that has not had a
single slip back in the last 18 months and in fact, has appreciated in
value $1.20 in the last three weeks. He suggests that the shortage in
uranium has nothing to do with other commodities, but is based solely
on the reactors that were built in the past and their growing needs. He
suggests that the growing shortages will be based on current nuclear
needs and not anything that China or India may want to do in the future
(China just reported they want to build an additional 15 reactors in the
next two decades). Meanwhile we receive an article from City Journal
on why the U.S. needs more nuclear power and for any uranium bull, we
figure it’s mandatory reading…
The stunning thing about nuclear power is how tiny quantities or raw
material can do so much. A bundle of enriched uranium fuel rods that
could fit into a two-bedroom apartment would power the City of New
York for a year; furnaces, espresso machines, subways, streetlights,
everything!
To receive the Journal article, contact Debbie. Must-reading!
Strathmore Minerals
www.strathmoreminerals.com
www.strathmoreminerals.com
This newsletter is solely the work of the author for the private information of clients. Although the author is a registered investment advisor at Canaccord Capital Corporation
(“Canaccord Capital”), this is not an official publication of Canaccord Capital and the author is not a Canaccord Capital analyst. The views (including any recommendations) expressed in this newsletter are those of the author alone, and are not necessarily those of Canaccord Capital. The information contained in this newsletter is drawn from sources
believed to be reliable, but the accuracy and completeness of the information is not guaranteed, nor in providing it do the author or Canaccord Capital assume any liability. This
information is given as of the date appearing on this newsletter, and neither the author nor Canaccord Capital assume any obligation to update the information or advise on further
developments relating to the information provided herein. This newsletter is intended for distribution in those jurisdictions where both the author and Canaccord Capital are registered to do business in securities. Any distribution or dissemination of this newsletter in any other jurisdiction is strictly prohibited. The holdings of the author, Canaccord Capital, its
affiliated companies and holdings of their respective directors, officers and employees and companies with which they are associated may, from time to time, include the securities
mentioned in this newsletter.
David Pescod 780-408-1750
Debbie Lewis 780-408-1748
CASSIDY GOLD
Cassidy Gold
www.cassidygold.com
Sandra Wicks 780-408-1749
(V-CDY)
Page 2
$0.63 +0.08
We’ve been pointing out over the last few weeks and months, how absolutely no one cares anymore about the gold sector. Nothing made that
stand out more than the “Great Gold Debate” that they had on ROB-TV,
with Brian Acker and John Embry, who used to be everyone’s favorite
gold bug, and no one watched...and no one cared! Bringing it home today
(to us at least) is some drilling results out of Cassidy Gold on their Kouroussa property in Guinea, West Africa. 12.9 grams over 8 meters, which
ends in mineralization is phenomenal drilling results and yet the stock is
down! We ask President, Jim Gillis what is not to absolutely love about
this result and he says he is lost as to why it’s not attracting attention. He
says these days, you simply have to be a market darling like a Virginia
Gold Mines or a Linear to attract any attention at all, but he says the only
thing he can think is missing out of today’s results is a map to put some
of the very good results together. Our Mystery Mining Man finds this is
one of the few mining stories he’s starting to get interested in, and the
lower price helps. He points to the good results, the possibility of a whole
new zone and suggests that this is one property that looks more and
more if it has continuing upside potential.
DEB’S DITTY:
Canada’s health care system is experiencing some severe strains. Older folks unfortunately sometimes bear the brunt as this recent event indicates:
According to a recent account in a Calgary paper, a Mr. Smith had gone to the
doctor’s office to collect his wife’s test results. The lab technician reportedly
said, “I’m sorry sir, but there has been a mix-up—we have a problem. When we
sent the samples from your wife to the lab, the samples from another Mrs. Smith
were sent as well and we are now uncertain which one is your wife’s. Frankly, the
news is either very bad or terrible!”
“What do you mean?” said Mr. Smith.
“Well, one Mrs. Smith has tested positive for Alzheimer’s, and the other Mrs.
Smith has tested positive for AIDS. We can’t tell which is which.
“That’s terrible! Said Mr. Smith. You must do the test over!”
“Normally, yes we should. But Alberta Health Care won’t pay for these expensive
tests more than once”. “Well, what am I supposed to do now?” said Mr. Smith.
“Alberta Health Care recommends that you drop your wife off in the middle of
town. If she finds her way home, don’t sleep with her.”
Thanks Bill L.