DELPHI ENERGY
VELO ENERGY
CRUDE OIL
Times in the markets are getting a little bit closer to
whatever normal is. Yet with the price of oil going
through $80.00 today, we have to admit we are more than
a little shocked by that.
One person who we also suspect is a little shocked by
that would be Josef Schachter. If you have been reading
his monthly work and research out of Maison Place-
ments, you’ll know that he was not expecting this big
move in oil.
There is one little junior I am sure you will be able to
figure out which one we are referring to and that little
junior has had a great day today because of Schachter’s
comments.
Despite the fact that Delphi Energy is mainly gas, Del-
phi, one of his previous picks and a story he still likes is
again featured on the show, but it is interesting the com-
ment he does make on natural gas.
His suggestion is that if we have a normal winter, by
the time we get to April, there is still going to be lots of
gas sitting around in inventory and what could happen to
gas prices then? That’s a good question as we find our-
selves, despite a very buoyant oil and gas market, look-
ing at some of our natural gas stocks, worried about
those inventory numbers and despite the stories where
we loved management, were just that nervous about
natural gas prices.
Meanwhile, also of interest is Schachter’s comments
on Velo Energy, given his past history with Art Millholland
and the team at Oilexco. That alone is must see stuff.
Schachter had some negative comments to make on
Bankers Petroleum, which has been one of our favorite sto-
ries for the last while. Schachter, like a lot of analysts,
have yet to go to Albania to see the place which to us,
was like finding religion. It was that impressive! But
Schachter is right to point out that production for Bank-
ers has not increased and his comments on the stock
negatively affected it for a while this morning.
We do have to admit Bankers is getting close to our
target after one heck of a run.
To see the BNN show in case you missed it, just click
on the following link:
http://watch.bnn.ca/market-call/october-2009/market-call-
oc#clip225914
SYNODON INC.
It’s a stock that you probably never heard of, even if
you have a bit of a technical background, but the technical
people that talked about Wavefront and talked us into writ-
ing that story up so frequently now suggests that Synodon
is in the process of becoming over the next two quarters,
potentially one of the stories of the day.
Jim Letourneau tells us about one of the worst jobs he
ever had in the jungles of Timor with all the wild animals
handy and natives that seem to be friendly in one village
and not so friendly in the next. With some hand held
equipment chasing natural gas lines to make sure there
were no leaks.
Synodon’s new technology is expected to revolutionize
part of the gas leak detection business. We publish an
article interviewing Synodon President Adrian Banica on
Monday and hope the guys that talked to us about Wave-
front are right again!
ZIMTU CAPITAL
Oops! We were wrong. We’ve been having a little fun of
late talking about how Joe Martin, who runs the Cambridge
House conferences across the country and down in Phoe-
nix and how he has access to any broker, any analyst, any
company he wants to talk with/deal with because of those
conferences and yet over time picking stocks for Late Edi-
tion has not been his forte.
Well apparently, the last time he picked a couple of
stocks back on January 23rd, he actually picked two
stocks...that tripled! Oh my goodness what next?
Of course anyone brave enough to pick up stocks back
on those ugly days probably could have done well...either
very well or like hundreds of companies that got rolled
back or ceased to exit.
We touched base with Ryan Fletcher who is head of cor-
porate development for Zimtu Capital and he points out as
far as Joe’s picking abilities comments, “even a blind squir-
rel finds an acorn once in a while.” Fletcher also points out
that there has been quite a rally in the markets and the Ven-
ture Exchange is up almost 60%, which has been helpful for
any stock picker.