Cardero Resources (CDU): Brent Cook is not a macro-economics guy, so he’s not too concerned about falling commodity prices. “I look for a good project that a big company will buy,” he says. “If you find a major deposit, there’s always a buyer.”

And Cardero Resources already has a buyer lined up. The company has agreed to sell an iron-ore mine it’s developing in Chile to China’s Nanjinzhao Group for $200-million. That’s $3.50 a share – double Cardero’s current price. However, there is a catch: Nanjinzhao can walk away in the next nine months at a cost of $10-million. Of course, Cardero can also look for another buyer.

Mr. Cook says that’s a possibility. “I know both Indian and Chinese firms looked at it,” he says. He also thinks Vale could be interested because shipping to China from Chile is far less expensive than from Brazil.

China consumed about half of the world’s iron-ore last year. Mr. Cook expects Nanjinzhao will make the deal because China has been looking to reduce its reliance on the three big iron-ore plays – Vale, Rio Tinto and BHP Billiton – which, according to industry group Iron Ore Trust Fund, control 69 per cent of the seaborne ore market.

With a preliminary study saying the mine has $4-billion worth of ore, Mr. Cook feels it has the scale to lure a Chinese buyer.

“They tend to look further out then North America does – even with falling iron-ore prices, this makes sense for them,” he says.

If the deal goes through, he expects Cardero will use some of the cash to develop a smaller Chilean iron project – which he estimates has a market value of $200-million to $300-million. Cardero’s current market-cap sits around $100-million.

Mr. Cook owns shares of Cardero, as he does in any stock he recommends in his newsletter.