| #3601 - Tuesday morning thoughts |   |
Good morning. Overseas markets mixed this morning with weakness in financial stocks but strength in commodity stocks. Not much on the economic calendar to move the markets today. Existing home sales are at 10 am but thats about it. US futures are currently pointing to a flat to slightly down opening, but its early. It should be a good day for the Canadian markets if commodity prices remain strong. Also helping the Canadian markets will be the Bank of Canada's expected rate cut of one-half of a percentage point today in a bid to give the Canadian economy a boost.
Back in McFaulds Lake, yesterday was a very boring day for the various stocks. The volume levels continue to show a total lack of interest from investors as the news blackout continues from NOT. The old adage of it always being calmest before the storm keeps coming to mind with NOT. Obviously something is big is happening behind closed doors but so far everyone involved is very closed lipped. Not a single leak from the boardroom of NOT. The rumour is there are high level meetings going on with a room full of lawyers. This points to the possibility of JV's with a basket of stocks as the companies join forces as a way of selling themselves to a major. Stay tuned this could get very interesting, fast.
The latest rumour I heard was to expect a news release from NOT possibly on Wednesday. Yesterday NOT tested the gap on its chart. So far it held as it bounced off of support just over the $5 mark. Possibly they are defending the share price at this level. Down the road investors may look back and see this was a tremendous buying opportunity for those with a longer term view.
The basket of lesser plays in McFaulds Lake, BMK, FNC, FWR, PRB and SPQ all experienced share price weakness yesterday. Obviously the total lack of news is taking its toll on investors as they slowly sell off their holdings. For those with a longer term bias on holding any of these stocks, this appears to be a good buying opportunity. To me, FWR and PRB both look like excellent bargains at yesterday's prices. JMHO
Best of luck to all McFaulds Lake investors today.
