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

There was a recent breakout of a gap. Just beginning at the bottom of the weekly cycle. Money flow has turned positive and it's trying to improve its relative outperformance. Now into a breakaway gap.

Merging with Starpoint Energy Trust (SPN.UN-T). A positive for APF unitholders. Starpoint management has an excellent track record. A lot of its production is early stage which generally creates higher risks, and acquiring APF diversified their asset base for a more stable base. Longer reserve life. Better payout ratio. To play this, Buy APF rather than Starpoint.

Very technically competent management. Recently announced a proposed acquisition of Resolute Energy (RSE-T) basically increasing their production from 10,000 barrels a day to 18,000. This has also diversified their asset base with a much broader drilling program.

The deal with Falconbridge (FL-T) is a great deal as it brings two companies that should be together, together. From a smelting point of view, margins are going to get higher and higher. Good level to buy.

If he owned, he would sell it at this point. Take the cash and if you want to buy the basket of securities being offered, you can pick and choose.

Believe it is going to get taken out by somebody. Would be inclined to go with the share that's being taken off the street and stick with the old shares.

Buying the minority shareholding of Falconbridge (FL-T), possibly to look more attractive to the Chinese buyers.

Just had a double top. It's because we're in the corrective phase. Expect it to go sideways for the balance of the year. Use a stink bid (10/20% lower) that you don't think anyone will sell, but if they do it's a price you're happy with.

Today’s subject is International Markets and very few North American stocks are being discussed. Because we only cover North American Exchanges, this is the reason for the short listing today. Top Picks and Past Top Picks where on foreign exchanges, so nothing to show. SORRY!

Believes the correction is now over. It started 6 weeks ago which is just about right and we are now in the beginning of being very oversold. Statistics shows bulls were close to 50 and bears about 25 two weeks ago. Last week, bulls were 25 and bears 50. Complete reversal of sentiment in 2 weeks. Bull market still has a year to go. Had a move and now going through a correction. Should have another move going towards August, then maybe a pause, October is always a difficult time for the market and then should continue. Chart shows A) leg up in 2002 B) correction into ’03 C) very strong up-leg, longer than usual in ’03, over 12 months D) another correction at the beginning of ’04. This correction usually only lasts 3 months, but we had close to 6 months. Everything is being “right hand translated” meaning longer than usual. Therefore believes this leg that we are going into will also be longer than usual. It will be oil & gas and material stocks.

Not held in their active funds, but has to have it in their index portfolio, but not by choice. There are more suitable names. Yield is around 16%. The trust has high costs, low RLI.

Has one of the higher payout ratios at 80%. A little higher debt at 1.6 X debt to cash flow.

Being bought out by Highpine (HPX-T). The area play is great. Over the next couple of years, people will be paying a lot of attention to the combined company. It is sort of a capital market's move. It will be a $ billion enterprise value company. There's really not that many sizable companies left. A 2 year hold.

Came up with disappointing cash flow/reserve figures, so sold their holdings.

Resistance that gold is hitting is because 1) inflation is hitting the system and no one wants to admit it and 2) there’s some serious derivative exposure to gold that will be badly offside if gold goes up from here, so there is a lot of incentive to keep gold under control. When they get to the wall, gold will explode. The US will only have a sustainable bottom on their dollar if successfully address both 1) the current account deficit, which is out of control and 2) the budget deficit which he feels will be a trillion $’s before it ever sees $300 billion again. Greenspan has created new bubbles (analogy to the tech bubble) and nothings been corrected. If you continue to push money into the system and the world economy continues to grow aggressively, it will be serious.