Bill Cara: Sometimes ideas come from friends & family, Tues., Apr. 17, 2007, 3:59 PM

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April 17, 2007

Sometimes ideas come from friends & family, Tues., Apr. 17, 2007, 3:59 PM

On Nov. 1, I gave you the names of a couple promising uranium companies, Forsys (FSY.TO) and Khan Resources (KRI.TO). FSY had closed Oct 31 at C$2.46 and KRI at about C$2.25. Today FSY traded up to about C$10.17. It was over C$10 in March as well. The KRI traded as high as C$5.17 today.

As you know, I first gave you Khan Sept 18 when it was about C$1.50. So, that’s a gain of about +245 pct. I had just met my wife’s cousin John Kita at his father’s funeral. So that was a Family call. I’ve known young John for over 40 years. He’s now the chief geologist at Khan.

With Forsys (FSY.TO), in moving from C$2.46 to over C$10, there is a gain of over +300 pct.

Khan Resources chart (from their website).

The FSY.TO idea came to me from a friend of almost 30 years, Sal Masionis, who is a broker at Brant Securities in Toronto. I had lunch today with Sal. A company by the name of Cathay Forest Products paid the tab.

Sal, btw, knows his stuff because he still attends every public company meeting and luncheon and IPO dog and pony show he can. He attends all the mining shows like PDAC too. In fact it was at the Cambridge Gold Show in Toronto last fall where he gave me the Forsys name as his best pick on the board.

Sal asks questions, takes notes, gets to know the CEO. By my count he easily knows more than 1000 public company CEO’s on a first name basis. If you ever need a broker who knows the junior company game, give him a call. Tell him you were impressed by his urging me to write about Forsys a long time before the stock took off.

Also at lunch was Michael Cappuccitti, who I’ve known for over 25 years. Mike is now VP and Toronto Manager of Jennings Capital, a Canadian broker-dealer. Mike, Angie Comi and Frank Holmes used to work together back in the 80’s before Frank departed to US Global Advisors in San Antonio. Frank today is chief investment officer at US Global, and manager of the world top-rated natural resources funds as well as frequent guest on Financial TV.

All these guys know the business from every angle.

Another friend of almost 30 years is Vern McCreary who is the president of the Toronto Stock Brokers Club (aka AMEX Club because it started from the AMEX listed companies that toured North America to meet brokers and fund managers). Like the one he did today for Anthony Ng of Cathay Forest Products, Vern has put on these luncheons for public companies all over the world ever since I first met him. He and I will start them soon in Bahamas, I expect, starting this Fall.

But the point I’d like to leave you with is that should you be a young broker or fund manager or analyst in an urban center that has these luncheons, IPO dog & pony shows, AGM’s, whatever, you should be making every effort to attend as many as possible. You’ll meet and network with the right people and you’ll get to build your knowledge base faster than any other way I know. I can say that because that’s what I did, and the commitment really paid off.

If it didn’t, you wouldn’t be reading about small companies like Forsys here.

p.s., I wonder how well those other four uranium stock picks did since Nov. 1 (Oct. 31 pricing). Maybe somebody can check?

Posted by Posted by Bill Cara on April 17, 2007 03:59:19 PM | Category: Cara Today in the Market

Discourse

Bill. Nov.1 vs today.

Axu 11.99-17.00
Srx 12.30-17.26
U 11.35-16.60
Ure 3.85-4.75

Posted by: Horatio at April 17, 2007 4:47 PM [link]

Bill:

Frank Holmes! chairman of the board of Endeavour Mining, of which I am a happy prospering owner of shares and warrants...the company which helped Ian Telfer put together the Wheaton River shell company - for later conquests - and which is now into uranium plays.

come to think of it, EDV's head office is in the Bahamas! so, Bill, 'twill be a 'mover and shaker' junior mining hub!

tx for the story.

Posted by: joey at April 17, 2007 6:32 PM [link]

joey,

Endeavour Mining is headquartered in George Town, Grand Cayman, I think. That's a little closer to San Antonio, where Frank hangs his hat.

But you are right. My Tilley hat is hung in Nassau Bahamas, where I intend to build a "junior mining hub".

Posted by: Bill Cara at April 17, 2007 6:51 PM [link]

ah sigh, Bill...
here in Ontario, I get a longer season from my blue wool winter Tilley with ear flaps!
while yours floats, mine is warm to sit on whilst ice fishing!

Posted by: joey at April 17, 2007 7:15 PM [link]

Well that post was like the Facebook of investing. Your book doesn't have to mention any names, but I hope you give us some good stories from your days around Bay St. I'm sure you've got some interesting ones to tell.

I didn't have the chance to go to PDAC this year even though I got a ticket... I hit the Trump Real Estate gig instead and got a chocolate gold bar from e-Trade, some chocolate loonies (that melted in my bag) and a thousand ways to make a billion dollars. (most involving selling training to people looking to make a billion dollars)

The only piece of advice that I really took away from that infomercial weekend was 'get out of debt, unless it's somebody else's money, then borrow as much as you can'

One suggestion for the new site - a place where you and others can post events/dates that may be of interest to investors, like PDAC & meetings in Toronto (and elsewhere)?

Here's the first post.

Saturday May 5, 2007
Berkshire Hathaway Annual Shareholders Meeting
http://www.berkshirehathaway.com/meet01/2007meetpre.pdf

Last year's attendance - 72,000 passes and 20,000 attendees.

http://www.ketv.com/news/9169478/detail.html

Tickets are only $3,667.00, or go VIP for $109,900!

Airfare, hotel, and dinner at Dairy Queen is extra.

Posted by: wavesmash at April 17, 2007 8:42 PM [link]

For all you yellow cake fans (uranium), the NYMEX, next month will begin trading a futures contract.

Posted by: Telestar3d at April 17, 2007 8:46 PM [link]

KRY--I couldn't help myself; I peeked into the Yahoo message board. It's like watching a freak show (not meaning to sound mean).

Though I no longer have a position in KRY, the reaction to today's "news" story seemed odd. Per my Fidelity, it was a 'vice-minister', un-named--AND it is precisely the same type of musings that have been posited before.

The news around KRY is a miasma.

Posted by: Leisa at April 17, 2007 9:30 PM [link]

Joey -

Thanks to the reference to Casey's site. Looks good, but it's not the paper I was looking for. This paper, a pdf by an i-bank or consultant, systematically laid out the steps in the evolution of a mining company - complete with the odds of a company making it down the path, and the % of ultimate valuation on each step towards production. Was very useful ...

Jock

Posted by: Jock at April 17, 2007 9:31 PM [link]

Jock,

I searched for filetype:pdf mining company investment odds for you on Google and this is what it came up with. May be useful though probably not what you're looking for.

http://www.cerm3.mining.ubc.ca/documents/areviewofrecentminingstockscams.pdf

Heh, they even mention Placer Dome pulling out of Las Cristinas. No mention of Yahoo message boards though. Guess they need to update the paper.

Anybody remember www.bid.com? I followed the Yahoo boards with that stock... all the way down.

Wonder what happened to them...hmm..

http://www.thebrick.com/Application/Staticfiles/Whoisbid.asp?SiteCode=FR

Posted by: wavesmash at April 17, 2007 10:12 PM [link]

Facebook? Thanks wavesmash. Something else I had to look up.

You know, when I was bored in retirement 3 years ago, somebody recommended blogging. I thought, what's a blog? Then after a couple weeks, somebody else asked, why not do links? I didn't know what a link was. Then it was from another reader, why not do screenshots, and I had to learn that. Then FTP. The learning curve goes on and on. Today it was Facebook. Wow.

This Internet is really something. I now have 100,000 friends in 150 countries, and I have to admit this is the most fulfilling experience.

And it all started with, have you considered the blogosphere? At the time, I never knew there was a virtual world out there.

Posted by: Bill Cara at April 17, 2007 10:16 PM [link]

I have a couple of things to say about Facebook. My wife is addicted to Facebook. My friends are addicted to Facebook. I joined 3 days ago. I have 100 "friends" now.

STAY OFF FACEBOOK!

http://www.gottaquirk.com/post/505/facebook

Sorry for mentioning it.

Posted by: wavesmash at April 17, 2007 10:42 PM [link]

Wavesmash -- Thanks for the link to the review of mining stock scams. Most informative.

Posted by: Jock at April 18, 2007 12:20 AM [link]

ny thoughts on the recent launch of the sprott moly fund? MLY.to These guys have a good track record and from what I have been hearing is Moly is the next uranium...

Posted by: JB at April 18, 2007 11:52 AM [link]

April 17, 2007

Sometimes ideas come from friends & family, Tues., Apr. 17, 2007, 3:59 PM

Discourse

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