PDP Going Wild All This Week

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If you follow this blog you know that I had sold out of BWR and then entered into PDP

This is a great stock, when I first talked about it it had pulled back to 13.96, I started adding shares, and last week I started adding shares till I had 10,000 shares .
I started selling those shares this week at 16.73, then sold off a pile at 17.50 today.

Currently sitting in cash :-( thats good news and bad) The stock is like the Energizer bunny it just keeps on going and going. I'm now looking to buy back on a pullback PRIOR to the financials about to be released Nov 6 2007 .

BWR Down Again Today OUCH!

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Click above image to make larger

The only good news is this:

Breakwater Resources Ltd. |
Orest Wowkodaw, CA, CFA, 1.416.869.3092

BWR : TSX : 2.55 | 1,067.7M | Buy , Target 3.70 ↓

• Q3/07 results disappoint; but timing can be everything
Event
Breakwater reported relatively disappointing Q3/07 EPS of $0.02, well below our estimate of
$0.10 and the First Call consensus of $0.11. While the company did experience operating issues
at Myra Falls, the bulk of the earnings miss can be attributed to a timing difference between
shipped inventory and revenue recognition.

Impact Slightly negative.

Action
Despite the disappointing results, we are maintaining our BUY rating based on the company’s
growing production profile, attractive relative valuation, and rising cash position. We have
reduced, however, our target price to C$3.70 (from C$4.00) to reflect our slightly-reduced
estimates.

Our C$3.70 target is based on 6.0x our 2008 CFPS estimate plus year-end 2007
forecast net cash of $0.31 per share. With the ramp up at Langlois, the restart at Mochito, and
an expected improvement at Myra Falls, we anticipate financial results to markedly improve in 2008.

Valuation


Breakwater is currently trading at 9.9x and 4.6x our 2007E and 2008E CFPS and at a 2.9%
premium to our 8% NPV valuation of $2.48 per share, which compares favourably to our midcap
base metal producer coverage universe average of 10.1x, 7.4x and a 23.7% premium to
NPV.

BWR (Nov 1 2007 Buy+Sells By Brokerages)

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Now we know for WHY Garth M. (BWR Director sold on Oct 4th )

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BWR Crashes Today + I dodged a bullet

So here is what happened to BWR after the 3rd q financials were released.
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And the markets looked like this:

Gloom covers markets at noon

Thursday, November 01, 2007

Investor angst about credit markets and slower U.S. growth in consumer spending and manufacturing erased the Federal Reserve’s positive take on the economy, hammering markets at midday Thursday.

The main averages on Wall Street are down more than 1.5 per cent, with the financial sector taking the biggest hit. Among the casualties are downgraded Citigroup, with questions raised about its dividend, Bank of America and Credit Suisse Group.

“There is more downside in financials,” Doug Peta, market strategist at J&W Seligman, told Bloomberg News. “We just don’t know what the ultimate impact is going to be for all the subprime difficulties.”

Twenty-seven of the 30 Dow component stocks are in the red, with the industrials average falling 210 points, erasing all of the Federal Reserve rally on Wednesday. Citigroup alone has dragged down the Dow average by 25 points.

Disappointing quarterly reports were registered by Exxon Mobil and Sprint Nextel.
The price of crude oil did a 180-degree turn after rising above $96 (U.S.) a barrel for the first time, with the December contract falling $1.37 a barrel and gold prices retreated.

That humbled the composite index on the Toronto Stock Exchange to a 188-point selloff, with financials down 1.67 per cent, golds down 2.54 per cent, miners down 2.81 per cent and materials down 2.32 per cent.
Blue-chip Royal Bank of Canada, Manulife Financial, Cameco, Barrick Gold, CIBC, TD Bank, Canadian Natural Resources, Research In Motion, Canadian National Railway and Teck Cominco together have sliced more than 80 points off the composite.
Upstart OccuLogix Inc. fell 17 per cent to 22 cents after suspending clinical development of its Rheo blood-filtering system for dry AMD.

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