Investor's Letter

I think there is a good chance we have reached a bottom. The day the Venture was down around 9% was the panic selling day and since then it looks like we are on track for a 3rd day of good gains.If you sold out your test position in Mega, consider coming back in again. It may seem weird to exit a stock then come back into it but nobody can ever predict 100% what will happen in the future. So we have to test our theories with smaller positions and then increase our position as the stock goes up.Because if the price is going up that means we are right. And until the stock stops going up we should continue adding to our position.If you are not familiar with this technique, try it out and see if it gives you results. I have found this technique to be the most effective in minimizing losses while still providing good gains because we try to ride out positions as long as possible.

Oh no! It's the end of the world! Big News was that TSX loses 623 points in just a couple days.It's funny that right before this everything was so positive with Gold hitting new highs and newspaper articles talking about fund manager's "herd mentality".So what does this all mean?Well we are at a very volatile time in our markets with large moves up and down with a general flat trend. I myself am holding put in my positions and establishing some test postions in some beaten up stocks.What stocks?Well the first I want to talk about is Mega Uranium (mga.to).If you look Mega's chart there is nothing bright about it. The stock is off of its highs in the 9 dollar range to its current price below $3!!!So yes you can say it has taken a beating!But the thing that I find very positive about it is that Sheldon Inwentash, its CEO has been buying up the stock hand over first the last month or so in the $3 level.This is a man who has made money time after time with stock after stock. In other words, this is a man who has a very good reputation and who's actions we should watch closely.

Happy New Year!Boy I just looked at the time I posted last and it has been almost a full year since my last post. The past year has been a very challenging one for resource stocks but I am very optimistic about 2008.Oil is over $100, Uranium is bouncing back to $90 but where are our dear share prices?????In the pits!!! And more than half of Canadian fund managers are predicting drops in the TSX.But remember folks, monkeys have a better chance of outperforming the TSX than fund managers do, so whatever they say to do, we should be doing the oposite!So how did I do in 2007 you may ask??Well here is a little rundown of what I was in:KXL: Huge gains, I am very satisfied. Stock went up sharply, then down sharply. I started buying when it was flatlining. The stock is now hitting new highs and I still in but with my finger ready to pull the trigger if it drops 10-20% from current levels.NUX: Was a large holding of mine. Am slowly downsizing but the management team is still great on this dormant stock. Good news will definetely boost this stock very fast. Right now sitting at about two bucks off highs of around 3.50 so it'll be interesting to see how long it will take to run higher.