However their current pride and joy is the Yellow Jacket gold mine in northern BC.  This mine is currently producing gold although I don’t know how much or if it’s profitable.  The plan is to become profitable in the near future, that I do know.  From what I hear, hush hush, wink wink, the idea is floating around for the company to spin off this mine as it did Copper Canyon.  That could be a real boon for current Eagle Plains shareholders.  However, I do believe we’ll have to see EPL’s share price at a higher level that it currently is.

The other exciting development is the ongoing progress at their new Iron Range discovery in south-eastern British Columbia.  About 65 miles north-eastward the Sullivan lead-zinc mine operated for almost 100 years until it closed a few years back.  All during that time mine managers and geologists have been convinced that that the Sullivan deposit was only half of the total. They have been looking for the other half all those years, without success.  The search for the other half has continued but, thus far, all the efforts have been in vain.

Just a few weeks ago Eagle Plains, which owns 100% of several hundred square kilometers of this prospect have found, what they firmly believe, is the other half. Of course much more drilling and exploration will have to be completed before any official claims can be made.  Meanwhile I’m just sitting on my shares.  Sooner or later there will be a payout.

A note on strategy when dealing with these small exploration companies. I like to take a fair position then if the share price doubles I sell one half of my position.  That way I lock in a profit and still have the other half left at no cost to me to enjoy any additional gains, if any.  Then if that half doubles I sell all or just a portion thereby locking in additional profits and maintaining a position for any possible additional gains. Of course if things start to look really bad I try to unload everything as soon as possible.

This is all for the benefit of those who own either EPL or CPY or both.  It has nothing to do with my current ETF program which I know will be very profitable and low risk for the next few years.

Cheers

Ted L.

The two old friends I mentioned are Copper Canyon Resources (CPY) and Eagle Plains Resources (EPL).  Some of my friends and relatives who are following this may wonder what’s up with these two stocks.  Copper Canyon, as you know was spun off from Eagle Plains in 2006 and Eagle Plains shareholders received one share of CPY for each share of EPL they owned.

Copper Canyon’s sole asset is a huge deposit copper, gold and silver in Northern British Columbia. This property lies directly adjacent to a similar deposit called Galore Creek, now owned jointly by Nova Gold Resources (NG) and Teck Resources Corp.(TCKb) but operated by Nova Gold.

So, here’s the deal.  In order to build a mine Nova Gold needs Copper Canyon.  And in order to sell their shares Copper Canyon share holders have no other suitors than Nova Gold.  During the past few years the prices of copper, gold and silver have not been enough to justify the huge expenses required to build a mine. 

But now things have changed.  Prices are up and things are starting to happen. Copper Canyon’s share price closed at 48 cents today, a two year high.  It is likely that Nova Gold will make an offer for CPY shares around 50 cents.  This may seem like a fair price considering where it has been over the past few years.  It isn’t.  We don’t know if an offer is imminent and what form it will take, all cash,  cash and NG shares or all shares. Whatever the offer is going to be it must reflect a price of at least $1.00 per CPY share.  We’ll just have to wait and see what happens between now and year end.  Share prices have been and will continue to be very volatile. Up and down like cat on a trampoline.

I will cover some exiting news about EPL in few days.

Cheers,  Ted L. 

I still like the iShares Cdn 60 index ETF.  It is moving up along with the rest of the market and I see no real sell sign in the rear-view mirror.  It pays a dividend and trades sufficient volume that there is sufficient liquidity.

For now I’m hiding in the bushes but I do have an eye on iShares Cdn Technology ETF.  I also like some of the emerging markets but afraid to jump in right now. If I do make a move I’ll send a special message.

Good investing

Ted Lagerway

My portfolio looks in good shape.  Enerplus particularly climbed nicely along with most energy issues, particularly those with significant Natural Gas production.

I will hold off buying or selling till a clearer picture emerges..  There are several issues I really like but at this time I will use more than the usual caution.

See you next week.

There’s little chance bonds will drop enough to trigger a buy.  However, Emerging Markets are starting look interesting.  Real Estate also looks interesting but not enough to jump in.  Foreign Equities do offer the best prospects and I’m looking at the right ETFs to take advantage of possible opportunities.

I wont be able to report on my activities next week as I’ll be “On the road again” unless something special happens.

Adios for now

Ted L.

Our portfolio is climbing steadily with only two positions in place.  We’re ahead by about 4% since we started which isn’t much but at least it’s up, not down.

Perhaps I’ll have more to report next week.  Meanwhile I’ll sit tight.

Good luck,

Ted L

Have a great week.

T.Lagerway

I am still looking for a strong up move starting soon, despite gloomers’ and doomers’ wails of despair. Or maybe because of it.

Good hunting.

While still using ETFs (Exchange Traded Funds)  I will restore the 5 Position Model Portfolio we were using in the old CAPP system.  But I will also change the format.  The 5 positions will now be devoted to 5 Asset Classes as follows:

Pos 1     North American Equities.

Pos 2     Bonds

Pos 3     Commodities

Pos 4     Real Estate

Pos 5     Foreign and Emerging Markets

Testing going back to 1972 showed that this Asset Allocation model has outperformed the S & P by 7 – 9% points and showed NO losing year during that period.  Thus, LESS RISK AND GREATER POTENTIAL GAIN.

Positions will be invested in the applicable Asset Class as our market timing indicators dictate.  It is not likely that all 5 positions will be invested at the same time as the asset classes usually do not all rise and fall together. 

Tax implications should be minimal.

I have created a spreadsheet showing a model portfolio of $100,000.00 with 5 positions of $20,000.00 each devoted to each of the 5 Asset Classes. This plan should avoid any major market declines and profit from periods of rising markets.  

It is my intention and hope to report on this program every week.

Keep Well,

Ted Lagerway

The TSX Energy index ETF (XEG-TO) has been a disappointment.  Even when oils went up the ETF has lagged and is now just above my forced stop-loss of 10%.  If it should hit that level I’ll have to sell.  However, I believe energy prices will rise with the looming heating season, which my save my bacon.

The Materials ETF (XMA-TO) is doing OK and showing a modest profit as is the iShares 60 ETF (XIU-TO).  My lone stock, Enerplus Res. (ERF.UN-TO), is doing OK too. It’s paying me a nice dividend every month yielding about 9% per year.  Should natural gas prices rise to $6.00 or $8.00 this winter, as I expect, Enerplus may go up to the $48.00 I am looking for. If the price should slump below $23.00 in the meantime I’ll just buy more.

Enjoy the game.

TL