Happy Holidays

Another year is quickly coming to an end and it is now time to hang out with our families, eat lots of good food, drink and be merry. I am sure there will also be some investment discussions during this reflective time and some moaning as we have ended the year on a bit of a downer in the investment world.

The problems in US related to the Sub Prime Fiasco are now mainstream as it is impacting just about every sector of the economy. The once mighty financial stocks of the world have fallen because of some poor choices caused by greed being made by some very highly paid analysts. Now the general public represented by the government will have to swoop in and pay for the mistakes of these individuals. Don't worry, they will still be able to drive their fancy cars and live in their big houses. The general public on the other hand will be faced with some real pressures in the 2008. Some of these pressures will include: a devalued US dollar, high commodity prices, an aging workforce, devalued homes, rising mortgage rates and increased competition from Asian manufacturers.

So the big question to discuss over the holidays is where is a safe place to keep your "hard earned" money? A place that will allow it to appreciate in value. Some people may want to think about sticking your cash in the stocking hanging by the fire. Cash is always safe unless there is a currency crisis. The way central banks are printing money and throwing it at the markets, there is beginning to be a stronger argument for this case. The other option is to look for investments that will continue to trend higher. Commodities have been on fire for the last 5 years and many believe that we are definitely entrenched in a commodity bull market that will last for years to come because of fuelling by growth in China, India, Brazil, Russia and other countries. I still believe that commodities will provide some big gains for wise investors for years to come. It won't be as easy as it has been and investors will have to choose the "best of the breed" for commodity stocks and avoid areas of the world where political decisions control the future of the company.

December was an extremely punishing month for stocks as tax savvy investors sold their losers for a tax loss and built up their liquidity for a rush back into stocks in the new year. As you are preparing to take advantage of the boxing week specials at the malls, you should also be taking advantage of some of the great companies that have been sold off unnecessarily. Here are a few companies that are in my bargain flyer.

1/ AUN-X (Aurcana)- A precious metal/base metal producer in Mexico that has a strong balance sheet, growth and no debt. Are producing 1000 tons a day now and will be up to 1800 tons a day by the end of 2008.

2/ BBP-X (Bayou Bend Petroleum)-Bayou Bend is an oil and gas exploration and production company with a focus in the Gulf of Mexico shallow water shelf area. The Company has lease interests in the State Waters of Louisiana near Marsh Island and owns interest in several Federal OCS blocks offshore Louisiana and Texas. The Company has an aggressive drilling program planned for 2007/2008. They have had some disappointing drilling results on their joint ventures but have not drilled the lucrative Marsh Island Play yet.

3/ CHX-X (Cash Minerals)-Cash Minerals (www.cashminerals.com) is a publicly listed emerging energy company focused on uranium, coal and alternative fuels (synfuels). Under an agreement with Mega Uranium Ltd., Cash Minerals has the option to earn a 75% interest in uranium prospects located in various parts of the Yukon. These highly prospective prospects include numerous iron-oxide copper-gold (IOCG), structurally-controlled hydrothermal uranium targets. Recent volume has indicated that people are already taking advantage of this bargain price.

4/ MTO-X (Metanor Resources)-A junior gold producer operating in the Val'dor region of Quebec. They have close to 300 000 ounces of gold. Lots of growth potential through acquisition and exploration around their current properties in a mining friendly region of the world.

5/FVI-X (Fortuna Silver)-Fortuna is a growth-oriented silver and base metal producer focused on mining opportunities in Latin America. The Company's primary assets are the Caylloma Silver-Base Metals Mine in southern Peru and the San Jose Silver-Gold Project in Mexico. The Company is aggressively pursuing additional acquisition opportunities. For more information, please visit our website at http://www.fortunasilver.com/.


There are tons of bargains out there and I feel pretty confidant that many of the junior resource stocks that have been sold off will be higher by spring. Merry Christmas to all and Happy New Year!