STOCKCHASE

45.960

(A Top Pick Dec 22/10. Up 57.48%.)

2011-12-29

TOP PICK

A Comment -- General Comments From an Expert

5.760

Stock has really come off in the last few months. Very sound balance sheet with about $1.60 per share in cash. They've got $.50-$.60 in earnings. Stock, excluding the cash, is trading at 6-8 times earnings. You get about 1.8% yield and they may raise the dividend in Q1 as they have a lot of cash as well as a lot of cash flow. Have been buying back shares. There could be some near-term settlements.

2011-12-29

DON'T BUY

Le Chateau Inc. (A)

CTU.A-T

1.790

This has been a very difficult stock. Recently reported a very bad quarter. He would stay away from this one. Inventory has gone up a lot and their margins have fallen. Cut the dividend totally. Thinks they are in a bit of trouble.

2011-12-29

Comment

A Commentary

0.020

Gold. Has fallen back because people want safety and they are not moving to gold but are moving to the US$. Also, there are some larger US funds that have been underperforming so have sold off some of their gold holdings. Also people are taking profits as gold has done better than other things this year.

2011-12-29

DON'T BUY

Largo Resources Ltd.

LGO-X

0.280

Got burned on the stock in 2008 when they needed a lot of capital. Likes the vanadium space but they will need a lot of capital to bring their projects into production. Not a bad story at these prices, but they need to solidify their finances before moving their projects forward.

2011-12-29

Comment

Arcan Resources Ltd.

ARN-X

4.840

A little bit cautious as last quarter their costs were going up quite a bit. Producing about 5500 BOE's and planning to exit at around 6000. Cash flow multiple is not very high and have a big landholding. Likes the story.

2011-12-29

PAST TOP PICK

1.590

(A Top Pick Dec 22/10. Down 11.31%.)

2011-12-29

Comment

Oceanagold Corp

OGC-T

2.180

Likes the production profile. Their costs should be coming down so they have a good growth profile. An underfollowed story. It's just a matter of volatility with the gold price. Some of these companies are an little bit higher cash cost producers so they are going to have the fluctuations along with the gold price. Good management.

2011-12-29

PAST TOP PICK

1.450

(A Top Pick Dec 22/10. Down 46.43%.) All the silver stocks are down over 50% this year. Have a joint venture with Pan American Silver (PAA-T). Still likes the story.

2011-12-29

BUY

Trelawney Mining

TRR-X

2.900

Really likes the stock. It has come off again with the rest of the gold sector. They have continued to build out the resource. They had one step out but it didn't hit as high a grade as they were expecting. Believes they are at 7 million ounces today and could still get to 10 million.

2011-12-29

HOLD

0.040

Presently trading at cash value. Drilling up in Colombia right now and the new management team has come in to try to make sure they're not spending too much money too quickly. Will see drill results in the next few weeks.

2011-12-29

BUY

GasFrac Energy Services

GFS-T

7.120

Has been looking at this one. Probably a good entry point. Stock has come off quite a bit. Brought in a new management team. Outlook is very strong in terms of fracing. Have a lot of signed deals with Husky.

2011-12-29

WEAK BUY

Orbite Aluminae

ORT-T

2.360

They are trying to create alumina from clay. Still in a “show me” stage. Going into production in the 3rd quarter next year. He still considers it a concept stock as there are no revenues or earnings presently. If you have a long-term perspective, and if it works, it will be a multiple bagger. Otherwise it could go down dramatically.

2011-12-29

TOP PICK

Galane Gold Ltd.

GG-X

1.000

Gold producer in Botswana. Already producing and at today's gold prices they would be able to cash flow $20 million over the next 12 months. Market cap is only around $38 million. Expecting their costs will come down.

2011-12-29

BUY

Poseidon Concepts

PSN-T

12.500

Specializes in tanks for fracing fluids. Have done a great job in signing new deals. Great visibility. Very good yield at about 8.5%.

2011-12-29

Comment

Madalena Ventures

MVN-X

0.910

This is a stock that you can trade fairly well because the targets they are drilling are fairly large and every time they are about to announce the results of their drilling, the stock has a tendency to move up. They haven't hit any other targets and that is why the stock has moved down a few times.

2011-12-29

TOP PICK

Mart Resources Inc

MMT-X

0.900

Oil/gas producer in Nigeria and producing about 5000 BOE's and their net backs are between $40 and $45. Earned $20 million in Q3. Expect they will be ramping up their production. Just announced that the pipeline is going to be expanded so will be able to produce more so expects that in Q1 and Q2 production will increase quite a bit. Extremely cheap. Now analysts are following this. Expecting a special dividend followed by regular dividend next year.

2011-12-29

TOP PICK

Home Capital Group

HCG-T

49.750

Have done a phenomenal job of growing their earnings over the last 15 years, more than 20% per annum. Just raised their dividend by 11%. Cheap at less than 9X this year's earnings.

2011-08-29

PAST TOP PICK

40.050

(A Top Pick Dec 22/10. Up 36.19%.) Feels this will end up being acquired by Wi-Lan (WIN-T).

2011-08-29

TOP PICK

A Comment -- General Comments From an Expert

7.270

Making a hostile bid for Mosaid (MSD-T) at $38, which would be very accretive to them. In a win-win situation whether they make this acquisition or not. Trade at about 7X earnings not including cash.

2011-08-29

BUY

Desert Sun Mining Corp

DSM-T

7.670

A lot of plays on rare earths but not much production and he prefers seeing revenues and earnings. This one is trading at a huge discount to NAV of about $1.70. Have been buying back a lot of shares.

2011-08-29

BUY

First Nickel Inc.

FNI-T

0.150

Nickel. Expects to see some production coming in the next few months. There is quite of bit of upside here. Have plenty of money to get into production in the event of any cups.

2011-08-29

Comment

A Commentary

0.020

Small Cap Market. Volatile market will continue and investors are very jittery. There is a lot of good value in a small cap market. A lot of them are still reporting very good earnings. Very much a bottom-up scenario rather than a top down. Looks for companies that are trading at lower PE’s with good visibility. Likes those that grow their earnings at 20%+ and trade at 10-12 times earnings.

2011-08-29

TOP PICK

Neo Material Technologies Inc.

NEM-T

9.070

Actually making money through rare earths. Supply a lot of electronic companies and people who make smart phones as well as for automotive parts. Last 3 quarters they have blown away all consensus estimates. Will probably earn $1.40 this year. 6-7 times earnings. Good visibility.

2011-08-29

WEAK BUY

U.S. Silver Corp.

USA-T

0.620

Silver. There were when it tried to go into production but wasn't able to. Now in production and guiding to 2.4 million ounces. Costs last quarter were just under $16, which is very high, but at today’s silver price, they are still making quite a bit of money. Better opportunities in other silver stocks.

2011-08-29

BUY

Arcan Resources Ltd.

ARN-X

5.790

Just-released results, which are guiding to higher production levels. Crescent Point (CPG-T) owns a sizable amount of this company.

2011-08-29

PAST TOP PICK

2.130

(A Top Pick Dec 22/10. Up 25.6%.) Grades have gone up and they have found more gold. With gold price moving up, cash line to their bottom line is greater than he expected.

2011-08-29

PAST TOP PICK

2.450

(A Top Pick Dec 22/10. Down 0.71%.) Was a little disappointed with a grades of silver they found. Should still work out over the next 12 months. Very cheap story.

2011-08-29

HOLD

Sylogist Ltd.

SYZ-X

1.900

Was a top pick July 16/10. Did well operationally and had fairly good earnings. Earnings dropped a little bit for a couple of quarters. Still have a lot of cash on their balance sheet and just had a fairly decent quarter. Doesn't see a lot of downside risk but not sure what the catalyst is.

2011-08-29

HOLD

0.070

Stock has really lagged. New management. Have about $0.04-$0.05 in cash on the balance sheet. Just waiting for permits to drill in Colombia. Thinks they have some good assets.

2011-08-29

BUY

Northern Gold Mining

NGM-X

0.385

Has done everything in what you would expect. At 1.5 million ounces of gold and going to about 2 million. Very cheap valuation per ounces in the ground (around $23). Thinks it is just an undiscovered story.

2011-08-29

BUY

Perseus Mining Limited

PRU-T

3.650

Has just gone into production. Cash flow generation at today's gold prices could be at about $300 million or so and with the market cap at about $1.4 billion, so it's a cheap stock. Expect they will get to 4-5 hundred thousand ounces in the next year or so.

2011-08-29

HOLD

Tag Oil Ltd.

TAO-T

6.890

Has been a big win if you've held it since 2008. Have made a couple of discoveries. Has not been following this one closely.

2011-08-29

BUY

Orbite Aluminae

ORT-T

2.630

Want to turn clay into alumina. Have been able to do it in small batches and have been increasing the size of the batches. Good story long-term. There could be some hiccups getting into full-scale production. Execution risk. Still a concept stock.

2011-08-29

HOLD

Bennet Environmental

BEV-T

2.200

Soil remediation. Controversial story in that they were trying to get rid of the management team. Trading 15%-20% over cash. Doesn't see a lot of downside risk. Be patient and see what they do with the cash.

2011-07-13

DON'T BUY

Sino-Forest Corp

TRE-T

4.270

Still a lot of anxiety about this company as to whether they have misstated their earnings or assets. A couple of analysts have dropped coverage on this one. Market hates uncertainty. Still have $1.2 billion in cash. Probably best to stay away from this story.

2011-07-13

PAST TOP PICK

A Comment -- General Comments From an Expert

8.240

(A Top Pick Sept 23/10. Up 106.98%.) Sale of Nortel patents has recently shone the light on the intellectual property companies. Still cheap and still has a lot of upside.

2011-07-13

Comment

A Commentary

0.020

Gold/Silver. Gold at a record in Euros, British pounds and now in US$. It was just a matter of time. Normally this is a seasonally weak time for gold but there hasn't been much of a pullback. Expects to see some upside in gold and silver in the short term. US is letting its dollar slide on purpose. Currently likes the silver play better than the gold.

2011-07-13

HOLD

Glentel Inc.

GLN-T

18.600

Sell wireless devices through Cosco, Tbooth and Wireless Wave. Management owns 40%. Raised their dividends. Continue to beat expectations in earnings growth.

2011-07-13

BUY

Osisko Exploration Ltd.

OSK-T

15.040

Did a tremendous job of bringing the asset base from initial exploration to full production. Has very good leverage to the gold price. Good growth profile.

2011-07-13

BUY

McCoy Corp.

MCB-T

4.050

Drilling tools for oil. Have a good backlog. Good management. Not very liquid. $100 million market cap but the insiders own about 50%. Earnings where $0.18 last year, probably $0.38 this year and maybe $0.50 next year. Trades at 10X this year's earnings. Cheap.

2011-07-13

DON'T BUY

BioExx Specialty Proteins Ltd.

BXI-T

1.290

Recently did an issue around $1 and the market slaughtered the stock. Sold his holdings. Wouldn't Buy right now as it has had a bit of a dead cat bounce.

2011-07-13

BUY

2.380

Gold in Mali, West Africa. All cylinders are firing. Continuing to grow their asset and production base. Produced about 25,000 ounces last quarter. Guiding for 100,000 ounces in 2012 followed by 160,000 with an ultimate goal of 200,000. Stock could easily double if their production follows through.

2011-07-13

PAST TOP PICK

3.100

(A Top Pick Sept 23/10. Up 52.28%.)

2011-07-13

HOLD

0.090

Drilling in Colombia. Has been an under performer. The big story is that they haven't been able to drill as quickly as they thought they would because of permitting. Until they drill and you find out what they have, hold on to what you have.

2011-07-13

BUY

WestFire Energy

WFE-T

7.500

Recently merged with Orion Oil & Gas, which had a lot more production, which gives them more production and cash flow so they can drill some more of their targets. Should do all right with this over the next couple of years.

2011-07-13

BUY

GasFrac Energy Services

GFS-T

9.750

Fracing company. Expect they will do fairly well. Bit of a problem in the 1st quarter where they had 3-4 weeks of downtime and missed analysts’ expectations. Good visibility.

2011-07-13

PAST TOP PICK

Northern Gold Mining

NGM-X

0.375

(A Top Pick Sept 23/10. Down 13.41%.) Continuing to expand their resources.

2011-07-13

TOP PICK

Perseus Mining Limited

PRU-T

3.180

Gold in West Africa expecting to start production in 2 weeks. Expecting 200,000 ounces in the next 12 months, ramping up to 280,000 and eventually 400,000 and 450,000. Trading at a very low multiple. Great takeout candidate because of production and low-cost.

2011-07-13

DON'T BUY

Intertainment Media

INT-X

0.680

A lot of volatility. Not really making any money. Doesn't know the company well. More of a concept stock as there is no earnings or revenue.

2011-07-13

TOP PICK

Finish Line

FINL-Q

22.770

Athletic retailer selling mostly Nike, Reebok and Adidas shoes and apparel. Have done a phenomenal job of growing earnings. Last quarter reported 20% EPS growth. The quarter before they raised dividends 20%. About 25% of its market cap is in cash. Clean inventory. Same-store sales were up about 14% this quarter.

2011-07-13

TOP PICK

Orex Minerals

REX-X

0.950

Gold and silver. Have over 1 million gold ounces in Sweden. Very cheap. Hit some targets in Mexico at about 180 and 270 g per ton. Just signed a joint deal. A lot of upside in this story. Very cheap.

2011-07-13

BUY

Canadian Western Bank

CWB-T

30.580

Has been an excellent performer for a number of years. Good management. Good yield. Trades at a low multiple. Will grow with the economy and has the exposure in the west to the oil patch.

2011-03-28

PAST TOP PICK

29.920

(A Top Pick July 16/10. Up 37.46%.) Have done a great job of under promising and over delivering. Good yield. Have about $10 a share in cash.

2011-03-28

BUY

Pacific Rubiales Energy Corp.

5.860

Excellent entry point. Intellectual property company. Able to sign a number of deals near the end of the year worth about $500 million. Will start paying cash taxes on earnings. Expect they can earn $0.45 next year. Have $1.60 per share in cash.

2011-03-28

BUY

Sterling Resources

SLG-X

4.260

Have done a great job. Will hopefully be able to drill up some of their larger targets in the North Sea and bring them on to production. A lot of upside to the story. Just let it play out for the long term.

2011-03-28

TOP PICK

Glentel Inc.

GLN-T

31.500

Retailers of smart phones and cellular phones via kiosks in malls. Do an unbelievable job in growing earnings. Grew from $0.89 to $1.45 to $2.20. Raised their dividends 50%. Management owns 50%.

2011-03-28

PAST TOP PICK

Romarco Minerals

R-T

2.350

(A Top Pick July 16/10. Up 34.48%.) Gold exploration in South Carolina. Have had a number of great drill results. 4 million ounces proved up and another 2 million inferred. As they continue to drill it could increase to 9 million or so. Cashed up with $100 million.

2011-03-28

BUY

Pengrowth Energy

PGF-T

13.650

Good story. Haven’t grown production but has a very good yield of about 6%. Beat most cash flow estimates last quarter. Gas price has been lagging so feels this is the bottom for gas prices.

2011-03-28

Comment

Lundin Mining Corp.

LUN-T

7.510

Possibly being acquired but doesn’t sound like they want to go. If you own, it doesn’t hurt to take some profits.

2011-03-28

BUY

PRE-T

26.700

Play on the oil price. Good management. Stock dropped on confusion of how they reported reserves. Good entry point. Will be one of the biggest oil producers in Colombia. Looking for a lot of growth.

2011-03-28

BUY

Gran Tierra Energy Inc.

GTE-T

7.860

Have been doing well in production numbers. Have a lot of cash flow. Most of the drilling they will be doing over the next 24 months or so is through internal cash flows. Have a lot of targets in Peru.

2011-03-28

BUY

Bridgewater Systems Corp.

BWC-T (Dead)

8.900

Software to control roaming charges on Blackberries. Continue to come out with good earnings. Expect it will be taken over at some time.

2011-03-28

WATCH

Canacol Energy Ltd.

CNE-T

1.500

Did very well but has traded sideways over the last several months. Have a number of lots in Colombia and have been coming out with good drill results on the oil side. Production numbers have been ramping up as well. The big upside is that they will be drilling off of Guyana and there could be news in the next couple of months. Good management.

2011-03-28

STRONG BUY

1.650

Just reported 26,000 ounces last quarter. Came out with $0.05 in earnings, annualized is $0.20 with the stock at $1.65. Very low multiple for a gold company. Grades are getting better and he is looking for about 100,000 ounces this year growing to 200,000 next year.

2011-03-28

TOP PICK

2.460

Hasn’t moved up with the silver price. Takeover candidate. Can do $130 million in cash flow so very cheap.

2011-03-28

TOP PICK

Trelawney Mining

TRR-X

4.560

Did a great job in proving up their resource over the last 12 months. Recent 43101 shows 4.2 million ounces and expects this to continue to grow. Could be a take over target.

2011-03-28

PAST TOP PICK

Sylogist Ltd.

SYZ-X

2.170

(A Top Pick July 16/10. Up 3.43%.) Software. Had expected more growth. Good dividend. Have about $0.80 a share in cash with about a 4% yield. Still a Hold.

2011-03-28

BUY

0.120

Colombian oil and gas. Pretty much dead money for the last while. Made a discovery worth between 500 and 1,000 BOE’s so will have quite a bit of cash flow in the next couple of months. Did a large financing for some wells that have very large targets so financing risks are gone.

2011-03-28

BUY

WestFire Energy

WFE-T

8.700

A bit of a development story. In production and he would like to see if they can get production up on each one of their wells. Have a huge resource that he feels is in areas where there could be an interest in taking them out. Seeing the type curve move up in terms of production per well. A lot of upside in the story.

2011-03-28

BUY

Perseus Mining Limited

PRU-T

3.080

Gold assets in West Africa, Ghana and Ivory Coast. Good management. Going into production this year and expected to produce 80,000 ounces in Ghana this year and probably 200,000 next year followed by 278,000. Cash costs expected to be about $450 to $500 an ounce so have a lot of leeway. Will continue to grow through the drill bit.

2011-03-28

BUY

Allana Potash Corp

AAA-T

1.730

Very high grade potash in Ethiopia. World Bank financed them, which is a positive. Big believer in agriculture. Long-term play.

2011-03-28

STRONG BUY

Orbite Aluminae

ORT-T

3.240

Found a proprietary way to extract alumina from clay stone, which they patented. This will reduce costs by about 50%. Will also be able to produce high purity alumina with margins at about 90%.

2011-03-28

Comment

Bennet Environmental

BEV-T

1.880

About $1.70 or so in cash and no debt. Recently announced they were in acquisition talks but he hasn’t heard anything since. Upside depends if management can execute a good acquisition.

2010-12-22

PAST TOP PICK

Home Capital Group

HCG-T

51.340

(A Top Pick April 30/10. Up 9.33%.) Still Likes.

2010-12-22

BUY

Liquidation World

LQW-T (Dead)

1.140

New management has refurbished a number of stores, which are now starting to see a good pick up in same store sales growth. If management can continue to execute, this can be a very good stock in a couple of years.

2010-12-22

TOP PICK

30.100

Just signed Texas Instruments and IBM to intellectual property agreements. Will probably earn $3 this year. Earnings keep coming through so stock is cheap. $130 million in cash. Management does a great job in under promising and over delivering. 3.5% yield.

2010-12-22

BUY

4.830

Just signed a deal with LG Electronics over their wireless patent. Trial is going on in Jan and there could be a catalyst coming up in the next couple of weeks. Very strong patents.

2010-12-22

HOLD

Fortune Minerals Ltd.

FT-T

1.580

Big coal deposit up north and will be going into production with tungsten and gold, which should generate some cash flow. A lot of acquisitions in coal so this could be a target eventually. Good story to hang on to for the long term.

2010-12-22

HOLD

Sterling Resources

SLG-X

3.420

Stock has been stagnant because they did a recent financing. Likes the story long-term. Will be drilling some large oil targets in the North Sea over the next 6 months or so. A lot of CapX involved but Risk/Reward is good.

2010-12-22

Comment

Mirasol Resources

MRZ-X

5.730

Silver. Recently came out with some spectacular results. Looks like it continues to get better grades and a bigger deposit. Should give you a lot of leverage. Might be a little ahead of itself currently.

2010-12-22

Comment

Canacol Energy Ltd.

CNE-T

1.560

Traded sideways last few months. Expected to exit the year at 7000 BOE but was 10,900 with 6,00 barrels of tariff oil where the margins are not that great and 4000 are net to them. Currently drilling very large wells in Guyana and expect to hear results in 60 days or so, which could move the stock dramatically.

2010-12-22

TOP PICK

1.680

Gold in Mali. Increasing production and last quarter was a record one with 23,600 ounces. Earned $0.04 in the quarter. Expecting a new resource by 2010 year-end and grades will go much higher.

2010-12-22

Comment

Sandstorm Resources Ltd.

SSL-X

0.770

Gold. Some companies that aren’t able to finance their mines, this company will pay money up front for future gold at less than current prices.

2010-12-22

TOP PICK

2.520

Likes silver. Has a joint agreement with Pan American Silver on a 140 million ounce deposit in Mexico. Very good grades with over 200 grams per ton. They don’t have to pay any of the CapX and they get a 45% interest. They expect they can produce 10 million ounces and cash flow about $80 million.

2010-12-22

PAST TOP PICK

Sylogist Ltd.

SYZ-X

2.180

(A Top Pick April 30/10. Down 19.41%.) Still Likes.

2010-12-22

PAST TOP PICK

0.145

(A Top Pick April 30/10. Down 21.62%.) Still Likes.

2010-12-22

HOLD

Extorre Gold Mines

XG-T

6.340

Silver play in Argentina. Likes the story. A little ahead of itself right now.

2010-12-22

PAST TOP PICK

Bennet Environmental

BEV-T

1.830

(A Top Pick Feb 11/10. Down 11.21%.) Sold his holdings at about $2.80 but looking at it again because it is close to cash value now.

2010-09-23

PAST TOP PICK

23.900

(A Top Pick Feb 11/10. Up 8.01%.)

2010-09-23

TOP PICK

3.990

Licensing company for wireless such as RIM (RIM-T), Nokia (NOK-N), etc. Recent Markman hearing with Apple (AAPL-Q), Dell (DELL-Q), HP (HPQ-N) and a few others that was mandated that a mediation was to take place and finished by Oct 20.

2010-09-23

BUY

Sterling Resources

SLG-X

3.000

An exploration story that is actually working out. Recently hit a 5900 BOE well. Still a lot of upside left. Won't go into production until mid to late 2012 but with their drilling program for the next 12 months you can get more upside.

2010-09-23

PAST TOP PICK

Glentel Inc.

GLN-T

19.450

(A Top Pick Feb 11/10. Up 27.22%.)

2010-09-23

Comment

Romarco Minerals

R-T

0.070

Recently came out with drill results that were super high grade. Asset continues to get bigger and grades are getting better. Expect someone will buy the company before they go into production.

2010-09-23

DON'T BUY

Catch The Wind Ltd

CTW-X

0.445

Used to be a $3 stock and has come down to $.45 because there are no earnings. Just announced the CFO is leaving so they have to find a replacement.

2010-09-23

Comment

Arcan Resources Ltd.

ARN-X

4.490

Expect they will average 2500 BOE's production this year and exit at 3500-4000 at the end of the year. May have to raise some more money to drill out the rest of their properties, which could create some weakness.

2010-09-23

PARTIAL SELL

Atac Resources Limited

ATC-X

6.560

Has just exploded because they came out with some very good drill results. If you own, consider taking some off the table.

2010-09-23

TOP PICK

1.970

Very bullish on silver. A misunderstood story. Developing one of the biggest pure silver deposits in Mexico. 200 million market cap. In a joint venture with a $3 billion market cap company, Pan-American (PAA-T) who will fully fund the project into production with Orko retaining 45% of the economics.

2010-09-23

HOLD