If you are an investor in SPQ like I am, you're probably scratching your head and saying "Ouch!" In fact, you may be cursing, crying, or have become downright depressed. Maybe all three.

"What's happening?" you ask. Good question.

Stock market movement is in part defined by "cycles". Summertime in the northern hemisphere is typically a down time for stock markets - North America, Europe, and Asia. Share prices head "south", so to speak.

This summer we also have a larger global cycle which is defined by the ABCP /liquidity crisis - started in the USA but is now reverberating around the world. Furthermore, we now also face another global crisis around oil - supposedly the lack of it. The car industry in North America is getting killed.

I know first hand that in Toronto our housing market has just about stalled. Developers are putting up a gazillion condos, but the standalone house - newly built or older - is having a hard time getting sold. The 26,000 real estate agents in Toronto are hurting.

So how are things at the ROF and specifically with SPQ? Most companies including SPQ have enough drilling money for 2008. Noront has enough to work easily into 2009.

All of the companies I have invested in are or will be drilling on very good prospects (SPQ, NOT, FWR, FNC, PRB). The geologists have a very, very good idea what's in the ground, and where to drill.

So while the ROF investor frets, the drills will be drilling, core samples will be assayed, NRs will be coming forth, and one or two resource estimates and 43-101s will be issued. So the north is humming in the summer of 2008. 2009 will be the "coming out" year. I am personally looking forward to July 2009. To me that's where the future begins for the ROF.

If you can hold on to SPQ, and don't have to sell, I think the future looks good. One of my investor friends noted that SPQ dipped to 3 cents last summer. It may happen again. People get discouraged, and leave. It's natural - some people will dump their losers.

It's entirely possible that SPQ will get itself into a JV. But we must watch vigilantly and make certain it's a good one for the shareholder. But what if SPQ hits big on the Freewest JV? Or what if NOT, PRB, FNC, or FWR hit big on one of their claims right beside SPQ?

So there are lots of excellent possibilities. But there will be some downtime before it happens. If you don't like what the roll of the dice has given you, and you don't like the crap that's going on, it may be time to go.

But for me, I understand what's happening, I've made my bets, and I like my odds. GLTA

Snug