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Visit Stock Research Portal for free stock market data, analysis, and research on over 1,600 Mining and Oil & Gas Companies listed on the Toronto and Venture Exchanges. See our Legal Disclaimer.

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Oil Price Significance

President Obama appeared on U.S. Television yesterday and, among other things, talked about the retail price of gasoline and the possibility of tapping into the U.S. Strategic Oil Reserves as a way to help consumers deal with escalating gasoline prices.  From what I have read and heard, I believe the U.S. Strategic Oil Reserves represent about 3 months oil supply at current consumption levels.  As best I know, supplementing the U.S. retail gasoline price is not one of the intended purposes of those Oil Reserves.  The topic of rising U.S. retail gasoline prices was also the lead story this past Friday on ABC’s evening news.

So as you think about it what is the significance, if any, of this emphasis on recent U.S. retail gasoline price escalation.  To me it very simply means that the U.S. economy is fragile in the extreme, and that Main Street U.S. consumers are tapped out – or more than tapped out – from the point of view of having enough U.S.$ to maintain their lifestyles.  I don’t suggest you leap to agree with me, but I do suggest you think hard about this in the context of current reports suggesting U.S. economic recovery is ongoing.

Dollar v. Gold

Poverty in America

A brief article this morning talks about Americans who appear “totally delusional” due to rising stock prices and the regularly reported “economic recovery”.  The article, titled ‘The America You Didn’t Know Existed …’ – reading time 15 seconds – links to a ’60 Minutes’ television segment aired last evening (13.5 minute video) that discusses what it alleges to be a 25% poverty rate for children in America.  If you have not watched this 60 Minutes segment I suggest you take the time to watch this video.

Additions to Stock Research Portal’s Company Universe

Today we added the following Companies to our Company Universe:

Eagle Energy Trust (TSX:EGL.UN).  We currently categorize Eagle Energy Trust as a company focused on oil exploration and production operating principally in the United States (Texas).  Eagle Energy Trust’s current market capitalization is approximately Cdn$210 million.  Review research data on Eagle Energy Trust.

Manitou Gold Inc. (TSXV:MTU).  We currently categorize Manitou Gold Inc. as a gold explorer operating principally in Canada (Ontario).  Manitou Gold Inc.’s current market capitalization is approximately Cdn$20 million.  Review research data on Manitou Gold Inc.

SilverBirch Energy Corporation (TSXV:SBE).  We currently categorize SilverBirch Energy Corporation as an oil sands company operating principally in Canada (Alberta).  SilverBirch Energy Corporation’s current market capitalization is approximately Cdn$460 million.  Review research data on SilverBirch Energy Corporation.

Press Release Highlights

The following table summarizes the companies in Stock Research Portal’s Company Universe who last Friday issued Press Releases and whose shares increased in price from the previous day’s close by more than Cdn$0.05, more than 10%, and whose share volumes last Friday exceeded their trailing 3 month average trading volume.  You can research each of these companies by clicking on the company name in the table.

* Yesterday’s data, or latest trading day’s data, as applicable

Insider Trade Highlights

The following table summarizes the companies in Stock Research Portal’s Company Universe for who our system yesterday reported insiders who filed reports indicating they had acquired shares through ‘purchase’ transactions.  You can research each of these companies by clicking on the company name in the table.

Visit Stock Research Portal for free stock market data, analysis, and research on over 1,600 Mining and Oil & Gas Companies listed on the Toronto and Venture Exchanges. See our Legal Disclaimer.

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World Oil Supply

An article this morning titled ‘World Oil Supplies as Reported in EIA’s most recent International Energy Statistics‘ – reading time 8 minutes – sets out in 11 charts data I think ought to be reviewed and carefully considered by anyone investing in the equity markets. Based on January, 2011 reported numbers, one of the charts (dealing with OECD – Consumption of Petroleum Products) dates from 1990, while the other ten charts date from either 2000 or 2001.  The article concludes that “world economies are still growing, putting more pressure on oil prices”, and that by the end of 2011 OPEC spare supply margin may be depleted.  The article does not comment on or factor in the current ongoing political upheaval in Lybia in particular, or the North Africa and Middle East oil producing countries in general.  Notwithstanding, I recommend you take the time to read and think carefully about the data set out in this article if you invest directly or indirectly in the equity markets.

U.S. Real Estate Follow-up

As a follow-up to yesterday’s e-mail where I included an article written by Reggie Middleton (BoomBustBlog), Middleton has now written a second article titled ‘Further Proof Of The Worsening Of The Real Estate Depression‘ – reading time 5 minutes.

Yesterday, data was released that reported January U.S. new home sales at 284,000, about 14% below the forecast of 330,000.  Among other things, Middleton’s second article picks up on that, talks about the importance of new residential construction to the health of the U.S. economy, and I think importantly points out that the U.S. housing market is deteriorating in a very low interest rate environment.  As I said yesterday, I believe this residential real estate price deterioration is important in the near term from the perspectives of U.S. consumer confidence, retail spending, and GDP.  In the longer term it has to be detrimental to the standard of living of Main Street Americans as the U.S. population ages.  I believe, based on many conversations with my American friends, that for decades the broad perception of Americans has been that their houses are an important ‘investment’ which will always escalate in price due to location issues, supply/demand issues, and general inflation.  The current, and I think likely prospective, U.S. residential real estate market must constitute a very ‘rude awakening’ for a great number of decent, hard working Americans.  I suggest you read and think about Mr. Middleton’s latest article.

Additions to Stock Research Portal’s Company Universe

Today we added the following Companies to our Company Universe:

Artek Exploration Ltd. (TSXV:RTK).  We currently categorize Artek Exploration Ltd. as an oil & gas explorer and producer operating principally in Canada (Alberta, British Columbia).  Artek Exploration Ltd.’s current market capitalization is approximately Cdn$85 million.  Review research data on Artek Exploration Ltd.

Nevado Resources Corporation (TSXV:VDO).  We currently categorize Nevado Resources Corporation as a gold explorer (copper, iron, titanium) operating principally in Oceania (Australia).  Nevado Resources Corporation’s current market capitalization is approximately Cdn$20 million.  Review research data on Nevado Resources Corporation.

Talison Lithium Limited (TSX:TLH).  We currently categorize Talison Lithium Limited as a lithium producer operating principally in Canada (Alberta, British Columbia).  Talison Lithium Limited’s current market capitalization is approximately Cdn$595 million.  Review research data on Talison Lithium Limited.

Press Release Highlights

The following table summarizes the companies in Stock Research Portal’s Company Universe who yesterday issued Press Releases and whose shares increased in price from the previous day’s close by more than Cdn$0.05, more than 10%, and whose share volumes yesterday exceeded their trailing 3 month average trading volume.  You can research each of these companies by clicking on the company name in the table.

* Yesterday’s data, or latest trading day’s data, as applicable

Insider Trade Highlights

The following table summarizes the companies in Stock Research Portal’s Company Universe for who our system yesterday reported insiders who filed reports indicating they had acquired shares through ‘purchase’ transactions.  You can research each of these companies by clicking on the company name in the table.

Visit Stock Research Portal for free stock market data, analysis, and research on over 1,600 Mining and Oil & Gas Companies listed on the Toronto and Venture Exchanges. See our Legal Disclaimer.

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Oil Prices

I recommend you read an article today titled ‘Libya, oil prices, and the economic outlook‘ – reading time 4 minutes.  The article lists six events dating back to 1956 that caused significant oil supply disruptions, what is claimed to be the lost % output resulting from each, and the increases in production elsewhere in the world in some cases that compensated for that lost output.  The article goes on to discuss Libyan oil output, how that might affect gasoline prices in America, and – I think importantly – how that might affect U.S. consumer retail spending, and hence U.S. GDP.  There are, of course, many unstated underlying assumptions (e.g. that the U.S. consumer will not cut back of gasoline consumption) in the author’s analysis.  That said, the author concludes that from his perspective Libya in and of itself will not cause enough oil output disruption to have a material affect on continued U.S. economic recovery – but that the real concern is whether the political changes we have seen in Egypt, Tunisia, and now Libya will be replicated in other oil producing countries that may have a larger impact on economic recovery in the U.S. and elsewhere.

From my perspective this article is simply providing evidence of how fragile the U.S. economy, and the world economy, is at this point in time.  I also continue to question what I see as the ongoing dichotomy between non-resource equity prices and the equity markets given that fragility.  If you rely on an investment professional (an Investment Advisor or Personal Planner for example) I suggest you spend some serious time questioning him or her on their detailed and specific current views of the world economy.  If they answer with non-specific statements such as ‘diversification in a balanced portfolio of securities will work in the long term’, I further suggest you go to bed tonight with an unsettling ‘buyer beware feeling‘.  On the other hand, if your investment professional has (as you perceive things) well thought out opinions on world economic events, and reflects those things in the management of your investment portfolio, you ought to sleep more soundly than you otherwise might.

Eggs & Baskets

I suggest you read an article titled ‘Why I Put Almost All My Eggs Into Precious Metals‘ – reading time 3 minutes.  The author advocates protecting one’s wealth in these turbulent political and economic times by focusing one’s investments in precious metals, energy and agriculture related assets.  In support of this, he makes a number of comments I find interesting including that he thinks:

·           the ‘system’ may “implode, explode or go off on some tangent such as deflation or hyperinflation” and that if it does, that probably will result from a “sudden factor” that triggers other factors;

·           any such event or series of events “will definitely cause currency gyrations and imbalances which will cause public opinion and confidence to shrink dramatically; and,

·           nothing on the economic or political horizon is suggesting that any country – anywhere – is changing course, and there is little evidence of any serious and realistic policy initiatives in circumstances where both are “grim and getting worse”.

With respect to the third point, clearly the author must be focused on the developed countries when he makes the ‘not changing course’ comment, as it is clear that this occurring as I write this in Egypt, Libya, and Tunisia.  With respect to the first point, the words ‘implode’ and ‘explode’ describe one or more immediate and extreme reactions.  Indeed, extreme events may occur, but even if world macro-economic conditions don’t suffer from one or more such things I think the author’s views are worth reading and thinking hard about, as economic ‘death by a thousand cuts’ (which to some degree I see occurring currently) eventually leads to similar consequences as would one or more extreme events.

U.S. Real Estate Depression?

Another ‘Reggie Middleton‘ article I think worth reading (again published this morning) is titled ‘In Case You Didn’t Get The Memo, The US Is In a Real Estate Depression That Is About To Get Much Worse‘ – reading time 4 minutes. If Middleton is right in his views, and I have found he often is, I think U.S. Consumer sentiment and spending both have to drop from where they are now.

Additions to Stock Research Portal’s Company Universe

Today we added the following Companies to our Company Universe:

Canadian International Minerals Inc. (TSXV:CIN).  We currently categorize Canadian International Minerals Inc. as rare earths elements explorer (also copper and gold) operating principally in Canada (British Columbia, Manitoba, Ontario).  Canadian International Minerals Inc.’s current market capitalization is approximately Cdn$12 million.  Review research data on Canadian International Minerals Inc.

Mineral Mountain Resources Ltd. (TSXV:MMV).  We currently categorize Mineral Mountain Resources Ltd. as a gold explorer (lead, silver, zinc) operating principally in Canada (British Columbia).  Mineral Mountain Resources Ltd.’s current market capitalization is approximately Cdn$28 million.  Review research data on Mineral Mountain Resources Ltd.

Storm Resources Ltd. (TSXV:SRX).  We currently categorize Storm Resources Ltd. as an oil & gas explorer and producer operating principally in Canada (Alberta, British Columbia).  Storm Resources Ltd.’s current market capitalization is approximately Cdn$110 million.  Review research data on

Storm Resources Ltd.

Press Release Highlights

The following table summarizes the companies in Stock Research Portal’s Company Universe who yesterday issued Press Releases and whose shares increased in price from the previous day’s close by more than Cdn$0.05, more than 10%, and whose share volumes yesterday exceeded their trailing 3 month average trading volume.  You can research each of these companies by clicking on the company name in the table.

Insider Trade Highlights

The following table summarizes the companies in Stock Research Portal’s Company Universe for who our system yesterday reported insiders who filed reports indicating they had acquired shares through ‘purchase’ transactions.  You can research each of these companies by clicking on the company name in the table.

Visit Stock Research Portal for free stock market data, analysis, and research on over 1,600 Mining and Oil & Gas Companies listed on the Toronto and Venture Exchanges. See our Legal Disclaimer.

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