S&P/TSX COMPOSITE INDEX:
AMAZON MINING
I suspect there were more than a few people who went to
bed last night and didn’t sleep much as they had looked at
the futures markets and what it suggested was going to hap-
pen for tomorrow on the American markets. It already
looked ugly because of what was happening to the Asian
markets, but with the recent seven to 10 day correction, it’s
been ugly and brought back to many people memories of a
year ago.
It was nice to see a pleasant surprise this morning as
consumer confidence numbers in the United States, virtually
changed the screen from red to green, but after a six month
run in the markets, one wonders how much of a correction
we might be going through, when it will end or if it’s just
another step up. Certainly in the oil sector you can worry
about the big inventories and in the gold sector you can
worry about the huge amount of paper that has been printed
by the brokers. Suddenly there is a lot of dilution on every
gold stock out there and we are going into a time of year
when precious metal stories traditionally don’t do their best.
Still news out today like every other day shows that
things are going up with consumer confidence better in the
United States and it looks like Britain is now out of its reces-
sion (finally), but a sense of reality is the thousands of peo-
ple that lose their jobs today in Verizon. Sign of the times.
So what stories do we find of interest in the market at a
time like this? We ask so many people the question, what
are your three favourite stories and so many analysts, bro-
kers, etc specialize in different spheres you get a long list of
alternatives.
One of the most intriguing stories we find is still Amazon
Mining. Having been to Brazil, seeing first-hand how strong
that economy is and I suspect it’s going to get a lot stronger
down the road, and seeing first-hand the Brazilian sense of
getting things done. The Brazilians didn’t like that they had
to import so much oil so they made a go out of ethanol dec-
ades before it had been heard of in North America.
We suspect down the road, Amazon and their potential
thermal potash play might seal the same fate and sometime
this summer when they get to work on their Madeira Gold
project, we suspect it also, is going to attract a lot of atten-
tion.
We hope Kaiser is right, but at a time like this, would one
add to ones’ position? Well, at a time like this, one is always
nervous, but we have to mention that we have an interview
with “You-Know-Who” coming up shortly and you haven’t
heard his name here since Ultra Petroleum (NY-UPL) many
years ago.
Remember when Ultra was barely alive, having to lay off 3/4 of its staff, brining in new management just to survive?
And then the $1.00 stock became a triple, a five-bagger and a ten-bagger and how excited we were? Who would have ever thought that it would become ultimately a 130-bagger!
Hopefully “You-Know-Who’s” next high risk/high reward play has just a fraction of that intrigue. Interview coming
shortly.