Wed morning thoughts

Good morning. Looking at the overseas indices for the most part they are positive. Commodities are doing well on the back of record oil prices and base metal strength. Its hard to imagine how the US is in a recession yet commodity prices still going up. Perhaps I am missing something here. At 10:30 am we get the crude inventories. At times this important statistic can move the market.

Having a background in the automobile market I use this as an indicator of how the markets are doing. Mainly because these are big ticket items. Well the auto factories appear to have hit a bottom. Many are on mandatory overtime, so keep a close watch on the Big 3 share prices to give an early sign to an improving economy. My bet is the US economy has the worse behind it and we will see improvement shortly in the various economic indicators.

Back in McFaulds Lake, yesterday was a miserable day as NOT's share price flushed in late trading. The sell off was on double the daily trading average for the last couple of weeks. It appeared it was a run the stops sort of flush but the finish at the low of the day is of major concern. This stock needs news and needs it fast. Checked the rumour mill and my sources still saying news on Wednesday, so we don't have long to wait. If no news before the open today we could see further share price weakness. Perhaps a good buying opportunity. I almost bought the close yesterday but decided to wait for todays direction. Time will be the judge on this decision.

PRB was the only stock of the major players in McFaulds that showed some share price strength yesterday. Perhaps someone in the know here is accumulating. This stock does appear to be cheap, as a close proximity play to NOT's initial discovery.

FWR/SPQ stayed flat yesterday and survived the sell off also. Still having a hard time figuring out why the share prices of these two are so low. Hate to keep harping on visuals but they sure looked good. It is my understanding a news release should be coming from FWR/SPQ sometime this week. Sure would be nice if its partial assays. At least investors would have some real insight to the possibilities.

FNC continues its downward share price spiral. Still nothing on the insider reports, so no support yet from management. What a disappointment this stock has been for investors. The lack of investor updates and failed time lines from drilling announcements, is finally taking its toll on the share price. That said, I have to believe a bottom is close on this stock and it might be the time to start slowly accumulating. JMHO

Best of luck to all McFaulds Lake investors. The odds are this news blackout is almost over. Keep the faith.


Al