A Comment -- General Comments From an Expert (A Commentary)

A top pick is a Canada 3 month T-Bills. Yielding about 2.9%. A 3% return on a treasury bill is a higher return than the average dividend yield on the TSX. Feels it is time for people to increase the fixed income part of their portfolios. A defensive holding.

Expecting a 10/15% correction. Oil has come off from $70 to $64 and he feels it could back off to below $60, maybe $55/58 range over the next few months which would give investors a fabulous buying opportunity. Long term he's very bullish on the sector but we need these corrections to cool off the excesses that do occur.

Believes gold prices are going higher and will be in the $500 range by the end of this year.

Bullish on the US. There's a lot of value in the US. When New Orleans got hit by Katrina, the US went up. Loves the Canadian $. Has been on a hedge basis for the last 2 years. If investors are into US stocks and are not hedged to Cdn$'s, they will make no money. If you can seek out investments that are hedged back to the Cdn $ you've got the best of all worlds. Finding value on Cdn oil/gas, but there are still a lot of companies above his model price. Starting to get out of this area by taking profits. Still not a fan of golds as they are too expensive. Uranium stocks are obscenely expensive. Big fan of Canadian banks, especially National Bank (NA-T).

The Darkness of 2006 - Typically when oil/gas prices sky rocket there is a recession that follows. This has happened the last 4 times. Housing prices are in a bubble and at some point they'll start to come down. People have taken on a tremendous amount of debt and when they have to pay the piper later on it can be a problem. Car companies have been selling at virtually historical levels, so future sales are more likely to be lower resulting in layoffs. Because of oil/gas prices, expects to see a number of layoffs in a number of sectors.

Management has done a fabulous job.

Government of Canada 10 year bond. Interest rates in the bond market have not gone up. They've come down and he thinks they will continue to moderate.

Sell US consumer stocks, such as RV's, restaurents, retailers, etc. Basically he shorts companies that have negative same store sales and pairs with good companies.

2 of his top picks are not on North American exchanges. You would have to see your broker for this. China Petroleum (Hong Kong) As China grows, more and more people will have cars. Mitsubishi Tokyo Finacial Group (Tokyo) Likes the Japanese banking environment now. Becoming much more commercial in the way they manage their businesses. Profit margins have been low and can improve. Profit margins have been low and can be improved.

Has had a very rapid growth in its production. Some interesting properties. Was a little concerned with their numbers in the 1st quarter which were probably weather related. One of his more favourite junior oils.

One of the larger power names. Yield is relatively low. Management contracts was recently sold to Epcor and will be very interested to see what Epcor does with this platform. Will probably be more aggressive than what Trans Canada was. Underweight this sector so he doesn't own at present but will own again propbably.

Becoming a bit of an area play. Month after month they come out with a well. Starting to do exceptionally well. Growth potential is quite big. He would like to see a couple of more wells before he got too excited.

(Was a Top Pick in Jan26/05. Up 12%.) Its principal business's are Expedia (online travel), Home Shopping Network, Lending Tree, etc. Expedia has now been spun off. They will be reporting earnings on August 2nd at which time they will be split and will be trading on its own. Combined value will be about $32.

Believes that gold is a positive pattern and has had a pause. It is still within a rising 200 day moving average. Looks like it has a good chance of breaking out. Gold is the kind of commodity that does well at the tail end of a bull market. If there is a breakout it will go to new all time highs.

Proposing to merge with Mustang Resources (MUS.A & MUS.B-T) and Forte Resources (FRZ-T) and then changing into a trust. A speculation here, because if you're a pessimist on the yield side, you could see it all the way back to $6.50. Will be split into 3 with one being a coal bed methane. Once the deal is completed, will buy the coal bed part.