MD-0209

Bull & Bear’s

February 2009 VOL. 11 NO. 04

INSIDE...

Rebuilding A Portfolio Will Take Time, Effort
By Andrew Leckey Successful Investing Get over it. Move ahead. That’s the tough-love prescription for investors debilitated by the economic and financial downturn. Yesterday’s gone, so deal realistically with the world before you. As you begin to rebuild your savings and investments, take a deep breath and revisit the value of every holding that you own. Too many Americans are still stuck in avoidance mode. “Folks won’t even look at their investment statements because they’re so worried and upset about the market, and that is a mistake,” said Marilyn Capelli Dimitroff, a certified financial planner and president of Capelli Financial Services Inc. in Bloomfield Hills, Mich. “Stop thinking about history and where your investments were a year ago, because what you have now is what you have.” Although you can assume investment values will revive at some point, your projections for the future should consider current figures. In particular, go over 401(k) and other retirement accounts to see how your retirement prospects look. Determine how much you need to save and invest regularly to get your overall assets back on track. Deferred spending is still the major component in wealth-building. “Decide if your pool of assets is still enough, and if not, take action either by doing more saving and investing, or by cutting your spending,” Capelli Dimitroff said. “With U.S. equity markets down more than 30 percent, you have to ask yourself if you could sustain another loss like that, because, if not, it is time to start ratcheting down equity exposure by selling some stocks.” For the fixed-income component of your portfolio, she recommends Treasury inflation-protected securities, known as TIPS, whose returns are indexed to compensate bondholders for inflation. And brave investors should at least consider some discount-priced stocks. “There’s less risk in the stock market now than when the Dow Jones industrial average was at 14,000 and everybody loved it,” said Capelli Dimitroff, who recommends a portfolio diversified among U.S. and foreign stocks, large- and small-cap stocks, and growth and Continued on page 21

San Gold 2008 – What A Year! San Gold 2009 Looks Even Better

Ur-Energy – The Right People, The Right Projects, The Right Proceeds, Right Now
AURIZON MINES LTD. Gold Producer Aurizon Mines Is Utilizing Cash Resources to Grow Production Profile; Strong Cash Flow, Exploration Potential MINEFINDERS CORPORATION LTD. Minefinders Producing Gold and Silver at Flagship Dolores Mine MINERA ANDES INC. Minera Andes Doubles Production at San José Project VELOCITY MINERALS LTD. Velocity Minerals Advancing Significant Molybdenum Properties In British Columbia

I meet personally with the leading investment advisers and hear their recommendations for profiting in today's markets. Where do you get your advice?
Steve Forbes President, CEO and Editor-in-Chief, Forbes Will President Obama See the Light on Money and Taxes? What Happens Now? Gary Shilling President A. Gary Shilling & Co., Inc. When Will We Get Out of This Mess? Robert McTeer Former President Federal Reserve Bank of Dallas The Financial Meltdown and Its Aftermath Dennis Gartman Editor and Publisher The Gartman Letter Between Barack and a Hard Place: What's the New Investment World Going to Look Like? Bernie Schaeffer Chairman and CEO Schaeffer’s Investment Research Bull or No Bull? William Isaac Managing Director Secura Group, LLC World Economic Crisis and Rebound Panel

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Stocks Below $5 With Bundles of Cash
By George Putnam, III The Turnaround Letter If you are looking for maximum rebound potential, you have to go lower down on the quality spectrum. It is typically the lower quality and lower priced stocks that will have the largest gains when the market rebounds. Of course, you don’t want to dip down too far in terms of quality because in these tough economic times many weak companies will not survive. As a compromise, we looked for stocks that have been beaten down below $5 in price but where the companies still had substantial amounts of cash on their balance sheets, and came up with the stocks below: Alcatel Lucent (ALU: $2.11) was formed in 2006 by the merger of the two leading makers of telecommunications equipment. As you might expect when you merge a U.S. company with a French company during a period of industry turmoil, things didn’t go as well as planned. But now the company has a whole new top management team, and you can purchase the combined company for less than one half of what Alcatel paid for Lucent two years ago. Cypress Semiconductor (CY: $4.95) has long been an innovator in the semiconductor industry. Management is now focusing on becoming a major player in programmable chips used in a variety of products ranging from MP3 players to running shoes. T.J. Rodgers, Cypress’ CEO since inception in 1992, has been a buyer of the stock in recent months, and he has had a pretty good record of knowing when to buy his own stock. Flextronics (FLEX: $2.72), the world’s second largest outsourcer of electronics manufacturing services, faces some short-term adjustments as the worldwide economy continues to weaken. But the company has the global scale to be a big winner when manufacturing begins to rebound. Global Industries (GLBL: $3.51) provides construction and support services to the offshore oil and gas industry. The stock has been crushed as the price of oil has come down. The company is building a deepwater capability to augment its strong presence in shallow-water operations. This should boost the company’s prospects when oil prices recover. Lawson Software (LWSN: $4.71) provides enterprise resource planning software aimed at midsized organizations. This segment of the market is being hit particularly hard during the global slowdown, but the company has the cash to be a survivor. Also, it could be an attractive acquisition target when mergers begin to pick up again. Motorola’s (MOT: $4.93) long and notable corporate history has been tarnished in recent years, following a string of shortfalls in the cell phone sector and a revolving door in the CEO suite. However, the company has several very strong businesses that have been overshadowed by the cell phone problems. The valuation of the various pieces appears very cheap. Office Depot (ODP: $2.64) has been hurt as the company’s small- and medium-sized business customers have been forced to cut spending on office products. The company is responding by closing stores and distribution centers. The closings will lead to write-offs, but the company should be able to weather the current poor economic climate. Orbotech (ORBK: $4.20) makes high-speed optical inspection systems that are used to identify defects in the manufacturing of printer circuit boards and other electronic components. With heavy exposure to Asia, the company has suffered as manufacturers in that region cut back. Orbotech is implementing a number of cost cutting strategies to help it through the global downturn. Whatever you think of the company’s prospects, it is intriguing because its cash per share, after subtracting all debt, exceeds the stock price. Sun Microsystems (JAVA: $4.86) has been in the doldrums ever since the Internet bubble burst at the beginning of this decade. Just as it was finding a new market niche in providing computers to the financial services industry, that sector cratered. But it is not wise to count Sun out yet. It continues to have a strong research department, and its balance sheet should support the company for quite a while to come. Tellabs (TLAB: $4.21) has suffered as the biggest customers for its equipment, Verizon, AT&T and Sprint, postpone capital expenditures during the downturn. However, the company still has strong products, as shown by its winning a major new contract from British Telecom. And its strong balance sheet gives Tellabs plenty of staying power. Editor’s Note: George Putnam, III is the editor of The Turnaround Letter, 225 Friend St., Ste. 801, Boston, MA 02114, 1 year, 12 issues, $195. Published since 1986, The Turnaround Letter searches out companies that have had some problems and are temporarily out-of-favor, but are in the process of turning around. For more information on The Turnaround Letter, call 1-617573-9550 or visit the web site at www.TheTurnaroundLetter.com.

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Stocks to Watch
PEARSON INVESTMENT LETTER P.O. Box 79, Apollo Beach, Fl 572. Monthly, 1 year, $150. www.pearsoncapitalinc.com.

Pearson Capital’s recently recommended growth stocks include Berkshire Hathaway, Inc. (Insurance), Lion Gate Entertainment Corp. (Motion Pictures), and Supervalu, Inc. (Retail Grocery). Berkshire Hathaway, Inc. (NYSE: BRK.B; $2989), is a holding company owning subsidiaries engaged in a number of diverse business activities. The most important of these are insurance businesses conducted on both a primary basis and a reinsurance basis. Berkshire also owns and operates a large number of other businesses engaged in a variety of activities, as identified herein. Berkshire’s operating businesses are managed on an unusually decentralized basis. During the year ended 12/31/07, the Company acquired Boat America Corp. which owns Seaworthy Insurance Co. and controls the Boat Owners Assoc. of the U.S. In November 08, White Mountains Insurance Group Ltd. completed its exchange with Berkshire of runoff businesses. BRK exchanged about 95% of its interest in White Mountains for 100% of a White Mountains subsidiary, who holdings consist of Commercial Casualty Insurance Co. and International American Group Inc. Institutional Holdings: 196. Lions Gate Entertainment Corp. (NYSE: LGF; $5.61) is a filmed entertainment studio with a presence in motion pictures, television programming, home entertainment, family entertainment, videoon-demand and digitally delivered content. The Company releases approximately 18 to 20 motion pictures theatrically per year, which include films it develops and produces in-house, as well as films that it acquires from third parties. It also has produced approximately 76 hours of television programming, primarily prime time television series for the cable and broadcast networks. As of 03/31/08, Lions Gate distributes its library of approximately 8,000 motion picture titles and approximately 4,000 television episodes and programs directly to retailers, video rental stores, and pay and free television channels in the U.S., Canada, the U.K. and Ireland. Its segments include Motion Pictures and Television Productions. Institutional Holdings: 38. Suvervalu, Inc (NYSE: SVU; $17.54) is a U.S. grocery channel that conducts its retail operations under three retail food store formats: combination stores (defined as food and drug), food stores and limited assortment food stores. The Retail food operations include results of food stores owned and

Recommended growth stocks

results of sales to limited assortment food stores licensed by the Company. Supply chain services operations include results of wholesale distribution to affiliated food stores, mass merchants and other customers and logistics support services. SVU operates its stores under various banners, such as Acme Markets, Albertsons, Bristol Farms, Bigg’s, Cub Foods, Farm Fresh, Hornbacher’s, Jewel-Osco, Lucky, Save-A-Lot, Shaw’s Supermarkets, Shop ‘n Save, Shoppers Food & Pharmacy and Star Markets. Institutional Holdings: 406.” ***************

Louis Navellier’s BLUE CHIP GROWTH 9201 Corporate Blvd., Rockville, MD 20850. Monthly,1 year, $299. www.navelliergrowth.com.

Louis Navellier: “These Top 5 stocks have the best short-term prospects of all the great companies on our Buy List. 1. Amgen (AMGN) is scheduled to report earnings on January 26. This biotech stock has held firm since we bought it last issue, and I expect it to get a healthy bounce after its quarterly report. Healthcare companies like this will continue to play a large part in our Buy List, since the industry is recessionproof. 2. General Mills (GIS) continues to capitalize on strong brand recognition for its quality food products. The company recently said December sales were up, helped by stronger results at its Betty Crocker and Pillsbury baking units. This underscores the trend of consumers eating at home more often during tough economic times. 3. McDonald’s (MCD) could be gobbling up market share in the next several months. Wendy’s/ Arby’s Group Inc. announced recently it is cutting the number of restaurants selling breakfast items and hopes to relaunch its morning menu across the United States in 2011. This means that in the shortterm, McDonald’s will have a lot less competition for early diners. As the dollar continues to lose steam, multinational companies like MCD will see big improvements in their balance sheets thanks to overseas operations. 4. Southwestern Energy (SWN) is looking up as crude prices have firmed up a bit over the past several months. A weaker dollar boosts the longterm prospects of SWN and the rest of our energy companies, since commodity prices will move upward as the greenback falls. 5. Walmart (WMT) continues to be an important part of our Buy List despite disappointing news in the retail sector. While it’s true that December sales missed forecasts, don’t forget that the company’s overall numbers still rose while the rest of the sector is down. I am confident Walmart will continue to be an oasis for shoppers in hard times, and will stay strong through the first half of 2009.”

Top 5 stocks with best short-term prospects

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Standard & Poor’s THE OUTLOOK 55 Water St., New York NY 1001. 1 year, 8 issues, $298. www.outlook.standardandpoors.com.
Lisa Sanders: “Fourth-quarter operating earnings of $0.94 a share vs. $0.88 a year ago was $0.01 above one estimate. Revenue fell 4.9%, drug sales fell 11%, and medical device sales declined 1.9%, while consumer sales rose 1.2%. After some $0.03 to $0.05 dilution from the Mentor acquisition, Johnson & Johnson (JNJ: 56) expects 2009 earnings of $4.45 to $4.55 compared with $4.55 in 2008. While we note Johnson & Johnson’s lead positions in key health care markets, and robust R&D pipeline, we see 2009 results impacted by foreign exchange, weak economies, and greater competition. We lowered our target price on JNJ by $10 to $65, which is a peer-level 14.4 times our 2009 estimate of $4.50.” ***************

One to watch: Johnson & Johnson

they continue to supply the carbon fibers used in building the largest wind turbines. But automotive components are gaining share, and production costs are beginning to come down. The company’s stock has been absolutely crushed, falling from the $35 per share range when gas was $4 for a gallon, to around $6 per share recently. The difficult lies in the fact that supply for carbon fibers is rapidly expanding, and pricing pressure and gross margin compression are risks in 2009 and beyond. Zoltek’s most lucrative market remains the alternative energy sector, particularly next-generation wind turbines which have replaced fiberglass for carbon fiber. The company has contracts with two of the world’s leading wind turbine makers. Investors might want to take notice of carbon’s prospects.” ****************

Interinvest REVIEW & OUTLOOK P.O. Box 5162, Boston, MA 02205. Monthly, 1 year, $125. www.interinvest.com.

THE CONTRARY INVESTOR 09 South Willard St., Burlington VT. Monthly, 1 year, $125.

Alex Seagle: “Twice in the Contrary Investor’s sweet, short life has he entered into the curious love/ hate relationship that is found in owning an Italian sports car, specifically two 1974 Alfa Romeo’s. So it was with some interest that we noted the recent introduction of the Alfa 8C Competizone – a limited run of 500 costing around $265,000 per copy. One of the distinguishing features of the car is the extensive use of carbon fiber, as opposed to steel, throughout the vehicle. Carbon fiber has an interesting history of use in cars. Back in the mid-1970s, right after the famous oil embargo, Ford Motor, through its aerospace division, built an all-carbon composite LTD, showing tremendous weight savings, albeit at a very high cost, considering that the only fiber vehicle at the time was an expensive aerospace grade. For most of this period, pioneers in Formula One auto racing led the way in moving from aluminum to carbon fiber. Now with carmakers struggling to produce vehicles with better mileage, carbon appears poised to make serious inroads as critical component of new cars. Two companies positioned to benefit are Zoltec Companies, Inc. (Nasdaq: ZOLT), and Toray Group (Nasdaq Pink Sheets: TRYIF). Both manufacture the carbon fiber used in automotive, aircraft, and wind turbine production. At Toray, for example, annual production in the carbon fiber market is expected to reach 48,000 tons in 2010, double the amount for 2005. This huge growth will be attributable to the rapid expansion of aircraft applications including wind turbine blades and CNG (compressed natural gas) tanks in the face of high crude oil prices, as well as an increase in automotive applications. Zoltec’s largest application is wind energy as

Carbon poised to make inroads as a critical component of new cars

Dr. Hans Black: “Given the very rapid declines that we have now seen worldwide, our overall strategy is to become more favorable toward equities, but only in specific groups. We currently favor healthcare, quite a number of which we consider to be quite cheap, technology companies, as well as communication companies and several special situations in the food, natural resources and energy sector. Notable stocks in our opinion and worth accumulating are Biogen, Schering-Plough, Conagra Foods, Incyte, Novell and Sycamore Networks. Microsoft and El Paso also look attractive to us. We would avoid equities in emerging markets as there is likely to be further risk in that sector.”

Becoming favorable towards equities but only in specific groups

P.O. Box 917179, Longwood, FL 32791 (407) 682-6170 Publisher: The Bull & Bear Financial Report Editor: David J. Robinson The Monetary Digest, 1 year, 12 issues, $88. © Copyright 2009 Monetary Digest. Reproduction in whole or in part without written permission is strictly prohibited. The Monetary Digest publishes investment news and comments of investment advisory newsletters whose thoughts are deemed of interest to subscribers. Neither the information, nor any opinion which may be expressed constitute a solicitation for the purchase or sale of any securities or investment referred herein.

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Leeb’s INCOME PERFORMANCE LETTER P.O. Box 97, Williamsport, PA 1770. Monthly, 1 year, $72. www.leebincomeletter.com.
Gregory Dorsey: “There’s been a pronounced change in the spending habits of consumers in the U.S., Europe and Japan since the financial crisis kicked into high gear last September, with people increasingly reluctant to open their wallets and use their trusty old credit cards. Some media reports have portrayed the effects of the global slowdown as having dire consequences for the Chinese economy as well. But the truth is that while the Chinese economy has slowed from a torrid growth pace, it continues to expand at a rate we in the West can only envy. That’s just one reason why investors should look to China for investment opportunities. What’s more, two of the stocks in our Growth and Income Portfolio with the highest exposure to China are also paying solid dividends. China recently announced that its economy grew at a faster pace in 2007 than previously estimated: 13 percent rather than 11.9 percent. The revision boosted China’s economy to the world’s third largest in dollar terms, displacing Germany, after the U.S. and Japan. Now China’s output has slowed to a 6-7 percent annual rate from 10-11 percent a year ago. But growth much below that rate is politically untenable with millions flocking from the countryside to the cities every year. So the country’s leaders have taken steps to spur growth, recently announcing plans to spend $586 billion on economic stimulus during the next two years. That figure represents about 17 percent of the nation’s annual output. An equivalent outlay here in the U.S. would top $2.5 trillion. In addition to opening the government’s pocketbook, China has doubled rural incomes and slashed taxes. And while the Sino economy is still largely export oriented, Beijing is taking steps to encourage domestic consumption, which will favor consumeroriented companies operating there. Yum! Brands: Tasty Growth A company ideally situated to benefit is Growth &

Climbing the great wall of worry

Income Portfolio denizen Yum! Brands (YUM). The U.S. based global operator of KCF, Pizza Hut and Taco Bell has more restaurants (nearly 36,000) than any other company. Yum! Generates 28 percent of its income from China, with sales there set to grow at a 20 percent annual pace in the coming years. Despite being the largest restaurant chain in China, Yum! Brands’ penetration of that market has a long way to go to reach the saturation point. Currently the company operates about 3,000 restaurants in China, which sounds like a staggering number until you consider the size of the Chinese population. For instance, China’s rapidly growing middle class now numbers more than 300 million. Yum’s international operations outside of China are also enjoying strong growth and now represent 26 percent of the company’s revenues. Despite headwinds from the global recession, Yum’s management expects the company’s profits to expand by at least 10 percent in 2009 thanks to its international exposure, with faster growth in future years. Yum! has an impressive record of steady, reliable earnings gains, considerably fueled by its strong growth potential as perhaps the best China play. No wonder Yum’s stock always trades at a premium to the market. But the broad market sell-off has pushed Yum’s price down to a reasonable 14 times probably 2009 earnings. So you can now pick up shares at an attractive price and collect a 2.6 percent dividend too.” ****************

Steven Halpern’s THESTOCKADVISORS.COM
Each day, editor Steven Halpern features timely and insightful commentary, market outlooks and specific stock and fund recommendations from the nation’s top newsletter advisors on his unique website TheStockAdvisors.com. Here are a few recent postings. (See Editor’s Note for a FREE Special Report).

“2009 may be the opportunity of a lifetime to buy small-cap growth stocks; values are among the lowest levels in 30 years and a small improvement in fundamentals could spark a significant rise in prices,” says money manager and CFA Jim Oberweis, Jr. In The Oberweis Report, www.oberweis.net, he looks at “three ideas to buck the bad news.” Here’s his trio of small caps that he see “thriving despite difficult economic times.” “In tough economic times, most companies are hit by weaker consumer demand. But a few companies benefit from the bad economy. “A limited group of others operates in niches that are resistant to the bad economy. And a small number of companies that should be adversely affected by the nasty economic headwinds are simply executing flawlessly and overcoming the challenge. “From our portfolio, here are examples of each:

Small cap growth: Opportunity of a lifetime?

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“HMS Holdings Corp. (Nasdaq: HMSY), a provider of insurance benefits coordination for government sponsored healthcare programs, actually benefits from rising unemployment. “Their biggest client, Medicaid, is a government insurance program for low income people with no other insurance. HMS makes money by finding errors in the processing of medical payments. “As the ranks of Medicaid grow along with unemployment, the market for HMS expands as well. We expect HMS to grow earnings 35% over the next year. Shares trade for 33x our forward estimate of $0.93. “In our second case, certain companies have carved out niches that are only minimally influenced by a tight economy. “Neutral Tandem (Nasdaq: TNDM) operates a telecommunications network that connects traffic flowing across the networks of more than one telecom carrier. “For example, if AT&T Wireless wants to route a call to a destination that ends on a Comcast cable network, they have to pay their competitor – the local telephone company – a juicy fee to route the call through their tandem switch. “Neutral Tandem offers a way to bypass the Baby Bells when exchanging calls and data with each others’ networks. The firms claims their fees are much less than those charged by the Baby Bells, and the money doesn’t end up in the pockets of their competitors. “We are estimating earnings of $0.90 in the next twelve months, representing 55% growth in EPS. Shares trade for 18x our forward estimate. “The last case, a company executing very well despite economic headwinds, is well illustrated by Vermont-based Green Mountain Coffee (Nasdaq: GMCR). “The company built its name as a retailer of coffee, but their growth today is being fueled by the company’s single-cup brewing system, sold under the brand name Keurig. “Taking a cue from the razor blade model, Keurig sells their brewing systems at modest margins but makes a killing on their patented single-cup coffee packets, called K-Cups. “Sales grew 46% for the fiscal year ended September 2008, and we believe sales will grow at 45-50% in 2009. The shares trade for 28x our forward estimate. “Despite challenging economic headwinds, companies like HMS Systems, Neutral Tandem, and Green Mountain Coffee appear to be.”

“Peabody Energy (NYSE: BTU), the largest private market coal firm in the world, had a great 2008,” says Jack Adamo who has recently added the stock to the buy list of Insiders Plus, www. jackadamo.com. “Peabody has extensive holdings in the U.S. and Australia, the latter serving the China/Asia Pacific markets. It sells steam coal for heating and utility use, and coking coal for steel making. “Peabody has had some decent insider buying in the last few months – about 30,000 shares – not enough to get too excited about, but encouraging. There were also 27,000 options exercised, most of it at very low prices, for which the holder took no profits. “That’s also a good sign, particularly since those exercises come with a tax bill, and shares weren’t sold to pay it. “It implies faith the stock will rise. In addition, this type of activity is not closely monitored by most Insider watchers; so it’s less likely to be a public relations ploy, as much Insider buying is nowadays. “Peabody had a great 2008 and a great fourth quarter, with revenue rising 61% and diluted EPS up 48% over Q4 2007. But the company, like the whole industry, expects the pricing environment to be tough this year, with demand down substantially, particularly in coking coal. “The stock is selling for under $29 after reaching a 52-week high of $88. We sold it last September for a 68% profit after holding it slightly less than two years. “Earnings estimates for full year 2009 run at $3/ share, with a 20% increase in 2010. I doubt either estimate is reliable. But this is the best company in its industry and it’s selling for less than 10times earnings, albeit shaky earnings, given the environment. “I have no illusions that if the market craters again later in the year, as it almost certainly will, these shares couldn’t fall 30%. “But the on-balance-volume is very strong in the stock, indicating it is under accumulation by big investors. If the market has a good couple of months, the shares should put on enough padding to weather the downturn.” Editor’s Note: Monetary Digest readers can receive, FREE of charge, TheStockAdvisors.com Top Stock Picks for 2009. The Special Report in its entirety, features 75+ top advisors providing you with their Top Stock Picks for 2009, can be downloaded from Steven Halpern’s website, www.TheStockAdvisors.com.

Coal insiders eye Peabody

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COMMON CENTS P.O. Box 1265, Benbrook, TX 76126. 1 year, 8 issues, $72.

Roland Carter: “Concerning the electric car for which the world patiently awaits, it appears it’s already being built in China by a company named BYD Corp. (The ADR shares trade here OTC as BYDDY). If the markets weren’t so scary I’d be a buyer, but I’ll watch for the time being. BYD has grown within 14 years into now the world’s second largest maker of lithium-ion batteries used in cell phones and laptop computers. Branching into auto making seemed logical for this tech-innovative firm. They’re selling in China a plug-in hybrid with a small gas-assist engine capable of going about 50 miles on a full charge for $22,000. GM’s planned Volt won’t be here until next year – 40 miles on a charge and a $40,000 price tag. The Volt is not gonna save GM! By late 2009 BYD plans to have ready a total electric car capable of going 180 miles on a charge! Price hasn’t been disclosed. This is exciting, but perhaps will be lost with gasoline near $1.50/gal. Andrew Grove, Intel’s founder who still advises the company, has been pushing Intel to consider the advanced auto-battery business. I can’t believe any forwardthinking business person would not see the great potential for such. By the way, Berkshire Hathaway’s MidAmerican Energy subsidiary last fall bought a 10% interest in BYD for $230 million!” ***************

The Electric Car, It’s Here Already!

In my experience from the market crashes of 1994, 1998, and 2000, these types of stocks tend to perform exceptionally well in the year following a market crash like the one we had in October 2008. Assuming that global financial markets settle, I believe that each of these stocks has the potential to gain upwards of 50% between now and the spring. Nevertheless, I recommend that you take a relatively small position in each of these stocks, say, half of your normal position size.” ***************

THE HULBERT FINANCIAL DIGEST 5051-B Backlick Rd., Annandale, VA 2200. Monthly, 1 year, $15.

Since 1980, Mark Hulbert’s monthly newsletter, The Hulbert Financial Digest, has helped steer investors toward the best-performing stock market letters…and helped warn them away from the losers…so that they can maximize the profits earned from the investment advice they buy. “Over 12 months through December 31, 2008 the top performing newsletters were: 1) Crawford Perspectives +50.7%, Elliott Wave Financial Forecast +18.5%, 3) Peter Eliades’ Stockmarket Cycles +18.2%.” The most popular stocks among 10 year market beaters are Aflac (AFL), AT&T (T), Chevron (CVX), General Electric (GE), Hewlett Packard (HPQ), Johnson & Johnson (JNJ), McDonald’s (MCD), Microsoft (MSFT), Pepsico (PEP), Pfizer (PFE), and Wal-Mart (WMT).”
Editor’s Note: Hulbert Interactive is the online research tool that gives you 24-hour access to HFD’s performance ratings – along with the ability to run customized queries – on the nearly 200 stock and mutual fund newsletters with more than 500 recommended portfolios. Monetary Digest readers can receive a special discount. Go to https://store.marketwatch.com/Hispecial.

Most popular stocks among 10-year market beaters

GLOBAL STOCK INVESTOR, One Massachusetts Ave., NW, Washington, DC 20001. Monthly, 1 year, $29. www.GlobalStockInvestor.com.

“The strong performance of the equity markets since late November means that the time had come to dip your financial toe back into more risky assets, says Nicholas Vardy. He recently recommended buying two of the stocks on his Global Stock Investor Watch List – Millicom International and Nextel Holdings. Millicom International Cellular (MICC), the “Indiana Jones of the Cell Phone World” was taken off of our “Watch List” and added back to the Global Stock Investor portfolio on Jan. 7. This company has been a long time favorite of mine, but we were stopped out of the stock during the market turmoil of last year. It now looks like Millicom is re-establishing a solid uptrend, so now is a good time to tip-toe back into the stock. MICC is a BUY. NII Holdings (NIHD) is a wireless communications in Latin America and operates the Nextel service in all major markets of the region. It, too was taken off our “Watch List,” as it appears to have bottomed and now is in an uptrend. Assuming that global markets settle, I believe that NIHD (along with Millicom) has the potential to gain upwards of 50% between now and the spring. NIHD is a BUY.

Tip toe back into these two potential big gainers

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TOP PROS’ TOP PICKS, published weekly by InterShow, 1258 N. Palm Ave., Sarasota, FL 26. www.WorldMoneyShow.com.

Howard R. Gold, Editor of Top Pros’ Top Picks, offers a glimpse into the best advice from leading advisors around the globe. Most of the following advisors will host workshops and panels at the Las Vegas Money Show, May 11-14th, 2009 at the Mandalay Bay Resort. Show Focus: Buy & Hold and Trading. For FREE registration information see the editor’s note below. Ian Wyatt, Editor and Publisher, Growth Report, Co-Founder, Business Financial Publishing, LLC, 611 Pennsylvania Avenue SE, Ste. 417, Washington, DC 20003, www.growthreport.com, says a supplier of pregnancy tests and other diagnostic products will

Stock Picks and Insights from America’s most respected advisors

Playing the Do-It-Yourself Health Trend

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profit from a move towards home diagnostics. Inverness Medical Innovations (NYSE: IMA) engages in the development of consumer medical diagnostic products. Specifically, the company is a supplier of consumer pregnancy and fertility tests and other rapid point-of-care diagnostics. It also offers a range of vitamins and nutritional supplements. Inverness Medical is profiting from the growing home diagnostic trend. The company has taken its products global and is looking to add more monitoring systems to its pipeline. Management has a proven track record in technology and innovation and also has a significant equity stake in the company. Potential drivers of growth include growing political support for health-care reform; the fact that the health-care system is trending away from an activity-driven reimbursement system to a quality-driven reimbursement system; the growing importance of wellness testing in reducing overall health-care costs, and Inverness’s defensive growthstock characteristics. In the third quarter ended September 30, 2008, Inverness Medical recorded revenues of $438.8 million, up from $237.6 million in the third quarter of 2007. The company attributed the increase primarily to revenue provided by the health management segment, along with $63.5 million of incremental revenue contributed by recently acquired businesses. The net GAAP loss was $3.7 million, or 12 cents per diluted common share, from a net loss of $3.74 per share for the third quarter of 2007. The company reported a cash and cash equivalent balance of $154 million. The company is difficult to value, mainly because most of its growth has come through acquisition. As a result, projecting future sales and earnings can be tricky. Additionally, sales on a GAAP basis are negative. An easy way around using traditional earnings metrics is to look at the company’s cash flows and non-GAAP income. Here we see that the company actually earned $1.27 in 2007 and is expected to earn $1.97 this year. Throughout the past three years, Inverness has managed to grow cash flows to $88 million in 2007, from $34 million in 2006 and $26 million in 2005. We will use non-GAAP earnings per share (EPS) estimates to value the stock. This method removes one-time items and acquisition-related costs. We project that the company will earn $1.98 this year and grow earnings 29% to $2.56 in 2009. Shares currently trade at ten times our 2009 EPS estimate, which is shocking. Fair value for such a company is at least 16 times forward earnings, but we understand the uncertainties in the market place, as well as the uncertainties commonly associated with acquisitions. Accordingly, we are depressing our fair value multiple down to 12.5x, which results in a one-year target price of $32.

David Fried, President, Fried Asset Management, Inc., President, David R. Fried, Inc., DBA, The Buyback Letter, 15415 Sunset Blvd., Ste. 200D,

The Up Side of a Down Market

Pacific Palisades, CA 90272, says some limits have been loosened on retirement investing, giving investors an opportunity to buy low. For the time being, many investors have been scared away from the stock market. However, the amount that can be contributed has gone up. This provides an opportunity to “buy low”. Due to cost-of-living adjustments, the Internal Revenue Service has raised the maximum contribution level to $16,500 to a 401(k) plan. Those who are 50 or older by the end of the year can add another $5,500. And the maximum amount that can be contributed into a defined contribution plan is $49,000, up from $46,000 in 2008. With the markets well off their highs of a few years ago, saving aggressively for retirement would be a good strategy now. Contributions to a Roth IRA are made with aftertax money, meaning you don’t see any savings now, but the account grows tax free and the withdrawals –once you’re 59 ½ or older – are tax free as well. Income requirements have also gone down, making it easier to qualify for a Roth IRA. Single filers are eligible to contribute up to $5,000 a year as long as they earn less than $105,000 this year (up from $102,000 in 2008), while married couples can contribute if their income is $166,000 or less. Today’s tax rates are on the low side historically, [and] it is safe to assume that tax rates will be higher when you withdraw money from your IRA. Therefore, anything that you can pay taxes on now and have tax free later would seem prudent. Before you dismiss Roth accounts because you are ineligible (you are in too high a tax bracket), starting in 2010, anyone can convert an IRA (or other traditional retirement account) to a Roth IRA. The catch is that you would need to pay taxes on the amount you are converting. However, if your income is down, you may be in a lower tax bracket than you have been or will be in. Also, the rules permit this tax to be paid off in two years instead of one. Finally, the amount of money that can be given away tax free to the recipient has increased. This year, single people can gift up to $13,000 tax free to any individual, while married couples can gift up to $26,000. Finally, the Worker, Retiree, and Employer Recovery Act of 2008 was signed into law in late December. This law suspended the minimum required distribution rules for IRA accounts and qualified retirement plans for the 2009 tax year. That means most seniors who are 70 ½ or older are not required to withdraw money from their retirement accounts this year. So, not only will seniors avoid having to pay taxes on the withdrawal, but they can also keep their retirement account intact so it’s better poised to recover when the market does. Editor’s Note: Attend the Las Vegas Money Show, May 11-14th, 2009 at the Mandalay Bay Resort. Show Focus: Buy & Hold and Trading. The Las Vegas Money Show features 100+ leading investment and economic experts speaking at workshops, panels, and intensive presentations. Monetary Digest readers can register for FREE by calling 1-800-970-4355 and mentioning Priority Code 013701 or visit the web site at www.LasVegasMoneyShow.com.

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Resource Stocks
INVESTOR’S DIGEST of Canada 1 Richmond St., W., Toronto, ON M5H M8 1 year, 2 issues, $17.

David Chapman: “Last March gold hit its high just over US$1,000. At the same time the TSX Venture Exchange was at a level of 2,564, off its highs of 3,372 seen in April 2007 but still respectable. In July 2008, gold was testing its highs following a pullback, hitting a high of US$986 on July 15. The Venture exchange was at 2,310 and on the verge of a collapse. Gold hit a low of US$680 on Oct. 24, 2008 while at the same time the Venture exchange was in the midst of a cathartic collapse, having fallen to 830. Gold was off 33 per cent but the Venture exchange was down 68 per cent from its March 2008 highs. At its low on Dec. 5, the Venture exchange was at 684. Quite a collapse. While the financial markets imploded because of the collapse of the subprime-mortgage market and collateralized-debt obligations, resulting in bankruptcies and a credit-crunch, the commodity markets collapsed because of falling economic activity and reduced demand. All of this in turn put huge pressure on the financial institutions and the funds that were invested in the market. Many, particularly funds, were forced to liquidate. The mining and energy sectors were suddenly confronted with mine closures, deferred projects, layoffs and even bankruptcies, due to an inability to access credit or seeing their credit facilities suddenly withdrawn (Oilexco Inc. (TSX: OIL; $0.10) was a case in point). The junior exploration market that dominates the Venture exchange was hit very hard and forced liquidations in a thin market saw many of them fall 70 per cent, 80 per cent and more from their highs. The majority of this collapse took place from July to December 2008. One of the biggest shocks for investors was watching the TSX gold index collapse 56 per cent from July to October as well. In total the TSX gold index fell 60 per cent from the March 2008 highs. Considering gold only fell by 33 per cent, it was a shock to many. We note, however, that silver fell from over US$20 to near US$9 for a 56 per cent drop. Since then, gold has recoupled 15 per cent, while silver is up 19 per cent. The TSX gold index is, however, up 68 per cent and the Venture exchange is up 27 per cent. The stickiness of the Venture exchange stocks has been a major source of frustration for many of the speculative traders and investors that dominate that sector. But our gain we note for gold is in U.S. dollars. In many other currencies, gold was up even more. For 2008, gold was up five per cent in U.S. dollars, while the S&P 500 was losing 38 per cent. In Canadian dollars, gold was up 31 per cent; the TSX

Precious metals stocks will be 2009 bright spot

Composite lost 35 per cent. In the U.K. gold rose 45 per cent in British pounds, while the London FTSE was losing 31 per cent. Everywhere for the most part in 2008, gold was the top performer. In the United States, long-term U.S. Treasury bonds outperformed gold, but in Canada, gold outperformed Canadian government bonds, treasury bills and bank deposits. In a devastating year, cash, bank deposits and government treasury bills were it seems not the only place to hide. In terms of comparisons, gold stocks for the most part had never fallen to such lows against the price of gold. Not even in the days when gold was trading between US$250-300 back in the late 1990s was the gold/TSX gold index ratio so low. Gold stocks as a result were as a result a “screaming buy” at the time having fallen to such low valuations in relation to the price of bullion. And it didn’t matter whether they were seniors such as Kinross Mining (TSX: K; $23.73), Goldcorp (TSX: G; $34.06) or Barrick Gold (TSX: ABX; $44.93) or juniors, which dominate the Venture exchange. While we have already seen a decent move in a number of the senior and intermediate gold stocks, many of the juniors and exploration stocks lag considerably behind. We believe that gold remains a safe haven for investors and the results from 2008, a year where we had one of the worst market collapses ever, proved that holding gold as a part of your portfolio was a wise investment. As we go into 2009 gold, silver and the precious metals stocks are a potential bright spot for this coming year. With the U.S. monetary authorities ramping up the money supply, interest rates at virtually zero plus the financial bailouts, the central bank purchasing all manner of toxic instruments in an attempt to reliquefy the financial system (quantitative easing as they call it), it is only a matter of before gold and silver take off. There is a powerful argument for a “run on gold” that should get underway this year. The time lag between the mass reliquefiction of the financial system and when gold starts to run can be measured in weeks and months. But be assured. It will happen. While naturally we like to hold some bullion in our accounts and our consistent way we have recommended for investors is to hold the BMG Bullion Fund, a mutual fund trust that invests solely in gold, silver and platinum. (Note: I am director of BMG Management Group Inc., the manager of the BMG Bullion Fund). Junior Golds And investors should have some quality gold stocks such as the three we mentioned above. But more speculative investors may wish now to have a look at the junior gold miners. Later in the cycle speculative investors will also want to own the junior exploration stocks. We note that there is evidence of accumulation and insider buying in these stocks. Three junior gold miners we would like to mention are Semafo Inc. (TSX: SMF; $1.56) a junior in West Africa specifically Guinea, Niger and Burkina Faso. SMF recently reported production of 195,000 ounces

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in 2008 an 84 per cent increase over 2007. SMF may be making a multimonth double bottom near 75 cents reached in December 2007 and again in October 2008. A breakout over $1.60 would confirm this pattern and targets would be at a minimum $2.50. Lake Shore Gold Corp. (TSX: LSG; $1.32) is a miner in Canada in the Timmins area of Ontario but also with properties in Quebec near Noranda. LSG recently reported excellent results for its Thunder Creek property in the Timmins area. LSG is now breaking out over its 40 week moving average a positive development. There may be a little more work to do to form a bottom but the outlook for LSG is quite positive. Our third pick is San Gold Corp. (TSX.V: SGR; $1.31, www.sangoldcorp.com) a junior miner with major properties in the Rice Lake greenstone belt of Manitoba. San Gold has a National Instrument 43101 compliant resource of 1.6 million ounces of gold. SGR has a mill at Rice Lake that has produced in the past 1.4 million ounces of gold. SGR has moved into production from two mines at its Rice Lake Mill. SGR has moved up nicely from its October lows and is currently testing resistance at the 40 week moving average. Look for a bit more work but the outlook for SGR and its technical position tell us we will move higher. www.sangoldcorp.com. It has been a very rough year for the mining stocks as their collapse has far outpaced the fall in the price of gold itself. But many of them are now presenting bargain prices. With our outlook reaffirmed in 2009, we believe many of these stocks are now bargains for the speculative investor.” Editor’s Note: David Chapman is an investment adviser and a technical analyst with Union Securities. Mr. Chapman is a regular contributor to Investor’s Digest of Canada. ***************

2008. Its bull market objective is to rise to its 50-day trendline at 55.00. Most recent high is at 29.93. The chart is extremely bullish. Buy the May 32.50 calls. Place stop loss at 25.00. Buy. Gold Corp. (NYSE: GG; $31.51) fell to its low at 14.75 in late October 2008. Recovery has not only been sharp, but the probability of any break to a new low is mathematically nil. A rally above 32.50 breaks above its 50-day line and gives the stock a shot at its 62.00 high. Now roll the April 30.00 calls into the July 35.00 calls. Raise stop loss to 27.00. Buy. Goldfields Ltd. (NYSE: GFI; $11.63) fell to its low at 5.00 in October of 2008. Initial rebound off the low took the stock to the 10.00 level. I said here in the January 15 issue that anything higher pushed above a double top and anything above 20.25 records a breakout above its 50-day line will trigger a further rally. Buy the April 12.50 calls. Place stop loss at 8.00. Gold Reserve Inc. (NYSE-Alt: GRZ; $1.05) The collapse here dropped the stock to 0.25 in late November of 2008. Anything above 2.15 triggers reverse sliding pole to 3.90. No call options are available. No stop losses used here. Buy. Harmony Gold (NYSE: HMY; $12.30) collapsed to its October 2008 low at 5.30. Has more than doubled since then. I had targets of 12.90 and 14.30. Anything higher sees this as a $20 stock. Buy the July 15.00 calls. Place stop loss at 9.75.” ***************

INTERINVEST REVIEW & OUTLOOK P.O. Box 5162, Boston, MA 02205. Monthly, 1 year, $125. www.interinvest.com.

THE GRANVILLE MARKET LETTER, P.O. Drawer 1006, Kansas City, MO 611. 1 year, 6 issues, $250. www.GranvilleLetter.com.
Joseph Granville: “Got out of gold at 1002.62 on March 17, 2008. Went back in at 730.30 on October 24th. I assigned an objective of 900.00. If it can better that level then I think we have a shot at the old March 17th high. If it can’t make it, then I would have to dump the golds. Crystallex International Corp. (NYSE-Alt: KRY; 0.26) stock crashed to 0.17 in November 2008. Next two objectives are 1.40 and 2.40. Anything higher projects to 3.60. No call options are available. No stop loss is used here. Buy. Couer D’Alene (NYSE: CDE; 0.75) followed the railroad tracks pattern all the way down to 0.42 in November 2008. Almost doubled since then. Next two objectives are 3.20 and 4.20. No call options available. No stop loss used here. Buy. Freeport McMoRan Copper & Gold (NYSE: FCX; $27.92) stock has made a decisive change for the better. Now we have the positive pattern of rising bottoms. Stock saw its low at 17.00 in December of

Gold stocks to buy now

Dr. Hans Black: “Both gold and silver bullion have been trading with a firm bias during the past month. Global investors seem to be justifiably concerned with the degree of money creation characterized by actions in leading central banks. It should be noted that the sheer size of the numbers of stimulus programs and/ or guarantee programs is staggering. In the United Kingdom, for example, the total potential size of the bank guarantee program is close to £1 Trillion, or more than six times the per capita size of a similar U.S. program. While we have not abandoned our view that gold might dip in price once again, it is increasingly less likely. We have, therefore, been steadily adding to our positions in junior and mid-size gold producing companies, which have so incredibly been out of favor. It should be noted that past the current short-term updrafts, we may still get some further downside probing later on in 2009. Time will tell and a close watch must be kept on the success or lack thereof of global stimulus packages. Our current positions in Newmont and IAMGOLD remain attractive and should be accumulated on any weakness. In addition, we have been building up out interest in Gabriel Resources as well as Orvana, and would now also add Intrepid Mines, an Australian company, to that list.”

Steadily adding positions to junior and mid-size gold producers

12

San Gold 2008 – What A Year! San Gold 2009 Looks Even Better
High Grade Hinge Zone Discovery Followed by New Deep Mine High Grade Breccia Zone
By focusing its exploration and mine development efforts on Canada’s prolific Rice Lake Greenstone Belt, San Gold Corporation (OTC: SGRCF; TSX.V: SGR) has successfully transformed itself into a growing gold producer, a pure gold play with a projected profit margin that will be far higher than average. San Gold, one of Canada’s newest gold producers is producing from its main Rice Lake gold mine and is now driving a ramp from surface into the high grade Hinge Zone Mine (discovered in 2008). Additionally, the deep Rice Lake Mine (currently 5,600 feet deep) keeps generating happy news. In late 2008, an extremely high grade breccia zone was discovered very close to current workings at the bottom of the mine. A resource update is expected in March and will incorporate the new gold discoveries. Since 2004, San Gold tripled its gold resource base to 1.6 million ounces, brought its flagship Rice Lake Gold Mine to commercial production and, by aggressively exploring, continues to discover new high-grade gold deposits within a mile of its fully permitted mill. “We are a rapidly emerging and, as yet, unrecognized gold producer – our official gold resource count has nearly tripled and, with our recent high-grade underground discoveries and spectacular near surface Hinge zone, we soon will be adding even more gold ounces to our asset base,” says San Gold CEO Dale Ginn. Manitoba, produced 1.4 million ounces of gold until it closed in 1968. By the late 1990s, Harmony Mining and others invested $140 million to upgrade and reopen the Rice Lake Mine, only to close it again in 2001 as gold prices fell. Meanwhile, San Gold acquired land along the Rice Lake Greenstone Belt and discovered the San Gold #1 Mine. In 2004, San Gold purchased the Rice Lake Gold Mine from Harmony for a virtual pittance – $7.5 million, a cost discounted by the subsequent sale of prior tax losses for $12 million. In essence, the company was paid $5 million to take the mine off Harmony’s hands. Subsequently, San Gold invested $80 million along the Rice Lake Belt to re-open and redevelop the Rice Lake mine, re-activate the Rice Lake mill, build the nearby San Gold #1 mine, successfully develop a million new ounces of gold resources to the end of 2006, and then proceed to discover the high-grade Hinge zone and new gold zones in deep in the Rice Lake mine.

Rice Lake Gold Project Appears to Host Multiple HighGrade Gold Mines
The multiple-mine Rice Lake project lies along a prolific regional geologic trend where more than 41 million ounces of gold have been discovered to date – including Goldcorp’s Red Lake Mine (10+ million ounces of gold). Gold was first discovered at Rice Lake in 1911, leading to the opening of the Rice Lake Mine in 1932. The mine, which is located 230 km northeast of Winnipeg in

San Gold’s Rice Lake Gold Project...
An important new gold mining complex... the Rice Lake mine and mill facilities, several new high grade surface and underground zones ready for development, and 35,000+ acres on Manitoba’s prolific Rice Lake Gold Belt.

1

Rice Lake Gold Mine Believed Similar to Goldcorp’s Red Lake Mine
As San Gold continues to discover new high-grade gold zones deep within the Rice Lake Mine, the mine’s similarity to Goldcorp’s famed Red Lake Mine is increasingly confirmed. The Rice Lake Gold Mine extends a mile below surface. Many of the recently discovered veins grade between one and two ounces of gold per ton. The mine’s new geology model suggests strong potential for continued high-grade mineralization at depths below 5,000 feet. Recent exploration at the 5,600 foot level encountered extremely high grade gold values over significant widths in a massive breccia zone: for example, 82.7 feet of 0.50 oz/ton gold including 6.9 feet of 1.77 oz/ton and 20.3 feet of 0.76 oz/ton. The gold appears to be related to higher than normal concentrations of sulfide minerals, further confirming the comparison with the prolific Goldcorp mine to the east. The mine currently has well over 15 years of mineable gold reserves and, according to a conservative mine plan, will produce 60,000 ounces of gold annually starting in 2009 at an all-in cost of $360 an ounce. It is anticipated that a new mine plan, incorporating recent high grade discoveries, will project an annual production rate of 250,000 ounces by 2012, at a cost of approximately $290 an ounce. The Rice Lake 1,250 tpd capacity uses gravity concentration to produce half of the gold and flotation and leach circuits to produce the remainder. Dore gold bricks are produced on-site. New crusher equipment, paid for and onsite, will expand the mill’s capacity to 1,900 tpd in 2009. Unlike many other mining companies, San Gold’s access to unlimited, low-cost power will keep mining costs under control, even if global fuel and power costs increase. Looking forward, San Gold expects its mill processing to increase from the current 650 tpd to about 1,900 tpd in 2012 to eventually produce 250,000 ounces per year.

Rice Lake Gold Mine
The total depth of the Rice Lake Mine is 5,700 feet. The mine produces gold ore through a two-shaft system – the A-shaft penetrates to 4200 feet below surface, with a 5000-foot railway crosscut connecting to the D-shaft which currently penetrates an additional 1200 feet of depth. A spiral ramp goes down from the 32nd Level of D-shaft. The Rice Lake Mine contains measured resources of 320,100 tons at a grade of 0.28 opt gold and indicated resources of 644,000 tons at a grade of 0.29 opt for a total measured plus indicated resource of 964,100 tons grading 0.29 opt gold. Inferred resources total 1,879,500 tons grading 0.29 ounces of gold per ton. The zone is open at depth below the lower mine level. The Rice Lake Mine is a shrinkage stope type of mine using stopers and jack-legs. The ore is drawn out by scoop trams and transported to surface using the A-shaft hoisting skip and for the deeper portions through the D-shaft hoisting skips and transport by rail to the A-shaft. The mill complex produces gold using gravity concentration systems to produce 50% of the gold, while flotation and carbon in-leach circuit to produce the other half. The mill can pour dore gold bricks on-site and which then are transported to refineries to

refine it to LSE grades of gold bars. The Rice Lake Project employs some 280 people. The Company has developed an extensive training program in order to provide operations staff from the local communities. Approximately 60% of the local labor force is from the Métis and First Nations communities on the Southeastern side of Lake Winnipeg.

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scenarios – multiple producing mines creating a solid cash flow to fund continued exploration and property acquisition, a portfolio of high grade deposits under development, and virtually San Gold owns or controls untapped exploration ground in nearly 35,000 acres of prime a highly prolific gold belt in one exploration ground in southeast of the world’s most politically Manitoba’s Rice Lake district. The stable, safe and mining friendly company’s properties lie in the jurisdictions. Uchi-Sub-province on Canada’s SAN GOLD CORPORATION The company describes itself as Lower Superior Shield – an area a pure gold play with no hedging OTC: SGRCF • TSX.V: SGR that hosts four major greenstone against the price of gold. The belts with a history of substantial Contact: Dale Ginn, CEO company raised more than $100 gold production (Rice Lake, Red Box 1000, Bissett, Manitoba Canada R0E 0J0 million over the past two years, Lake, Musselwhite and Pickle Toll Free: 800-321-8564 and closed a $40 million financing Lake gold camps). All of the major Fax: 403-243-9517 in November 2007 and a $20 gold occurrences in the Rice Lake million financing in October 2008. E-Mail: [email protected] area occur as quartz veins or San Gold is now fully financed and quartz vein systems. San Gold’s Web Site: www.sangoldcorp.com is debt free except for a $9 million land position extends over 20 km Shares Outstanding: 225.3 million debenture that is convertible at along the Rice Lake mine horizon 52 Week Trading Range: $1.40 per share. The company is where a large zone of alteration U.S.: Hi: $2.20 • Low: $0.421 armed with some $250 million in and several early 20th Century Canada: Hi: C$2.25 • Low: C$0.57 modern assets, a market cap of mining shafts lie along the belt. approximately$300 million, more Surface exploration drilling in than $30 million cash in hand, a 15-year (and growing) 2008 discovered multiple new gold-bearing zones – the mine life, and absolutely zero political risk. Hinge zone, just one mile northeast of the Rice Lake Mine San Gold is led by an exceptional management and within view of the San Gold #1 haulage road and team. Executive Chairman Hugh Wynne, who has power line. This new Hinge Zone contains quartz and over 40 years experience in the mining sector and carbonate gold mineralized veins parallel to each other, over 25 years as an explorer on the Rice Lake and dipping to the north. The zone is largely unexplored Red Lake Gold Belts, was largely responsible for because it was located on a property boundary before assembling San Gold’s exploration properties. CEO San Gold assembled its large land package. Dale Ginn is a geologist and previously worked at “It looks like this may develop into another mine Hudson Bay Mining and Smelting, Goldcorp, Granges very rapidly We are getting some very exciting and Westmin. Most recently he was general manager results there – some of the best looking drill core to of Harmony Gold (Canada), the previous owner of the come out of the Rice Lake belt so far – the drill core Rice Lake Gold Mine. is peppered with visible gold. Drilling to the end of San Gold, which expects to become profitable 2008 yielded spectacular results – extremely high, this year, has budgeted $20 million for 2009 multi-ounce gold grades over thicker mining widths exploration and development along the Rice Lake than ever before encountered in the Rice Lake area.” Belt. The company has four drills active on surface says Director Richard Boulay. and another three drills active underground. The Hinge Zone ramp decline will reach the Hinge The company’s strategy is clear – by aggressively zone in January 2009 and multi-level access will be exploring its potentially rich property, growing its rapidly developed to mine the high grade ore in the gold reserves and bringing newly discovered deposits first half of 2009. This decline will allow the Hinge into production, the company will be recognized ore to be trucked up to surface. The distance from the as grossly undervalued – resulting in a positive ramp portal to the Rice Lake mill is approximately market price adjustment. Noted gold stock analyst a quarter mile. Jay Taylor equates the company’s Rice Lake project Investment Considerations to Goldcorp’s famed Red Lake discovery and rates San Gold offers investors the best of all gold mining San Gold as a “Top Pick”.
Disclaimer: This material is for distribution only under such circumstances as may be permitted by applicable law. It has no regard to the specific investment objectives, financial situation or particular needs of any recipient. It is published solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. References made to third parties are based on information obtained from sources believed to be reliable but are not guaranteed as being accurate. Recipients should not regard it as a substitute for the exercise of their own judgement. The opinions and recommendations are those of the writers and are not necessary endorsed by The Bull & Bear Financial Report. Any opinions expressed in this material are subject to change without notice and The Bull and Bear Financial Report is not under any obligation to update or keep current the information contained herein. All information is correct at the time of publication, additional information may be available upon request. The companies featured have paid The Bull & Bear Financial Report a fee for their investor awareness programs. The directors and employees of The Bull & Bear Financial Report do not own any stock in the securities referred to in this report. The Bull & Bear Financial Report is not affiliated with any brokerage or financial company.

Huge Exploration Potential Could Lead to Multiple Million-Ounce Gold Mines

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Dr. Mark Skousen’s FORECASTS & STRATEGIES, One Massachusetts Ave., NW, Washington, DC 20001. Monthly, 1 year, $29. www.MarkSkousen.com.
Dr. Mark Skousen: “I believe it is prudent right now to keep 10% of your portfolio in natural resources. I have three recommendations. First, StreetTracks Gold Index (NYSE: GLD) is above $88. Gold is one of the few investments that held its own during the financial crisis of 2008. Second, I recommend Freeport McMoRan (FCX: $22.81), the world’s largest copper-gold company (based in Indonesia). Revenues last year were off 8% to $52 billion, and earnings fell 30% to $3 billion, causing the stock to lose 60% of its value in 2008. But with the Fed’s easy money policies, I expect to see a recovery in the global economy later this year, which will be positive for copper and gold prices. Finally, I recommend Direxion Trends Strategy Fund (DXCTX: $32.39), a no-load mutual fund that goes either long or shot in six commodity sectors (grains, precious metals, industrial metals, livestock, etc). Due to complex geopolitical issues, the fund will only go long or be neutral in energy stocks, since it does not do any shorting of the energy sector. The Direxion Commodity fund uses a simple, seven-month moving average price. So far, its technique has worked well, and made money last year. The minimum investment is only $1,000, if you buy DXCTX through any major discount brokerage firm, such as Charles Schwab or E-Trade.” ***************

3 natural resource recommendations

low, (a possibility I fear), I suspect gold shares may get hit too. I would be more enthused about the share if the GDM/Gold ratio was back under 0.8 or 0.7. How can I be so bullish on the metal, while voicing concern about the gold miners shares? I believe this gold run is both currency related as well as focused on the money printing. I can envision and fear an international shock, possibly a Russian default or something like that which could smash equity markets, upset forex trading and push gold up even while the miners shares getting dragged down by an S&P crash. I wouldn’t specifically forecast such a sequence, but it is a realistic risk that worries me a lot. Scanning the major shares, they’ve come back into gear with each other since the crash and rebound. I would stick to the stocks that made higher highs in early 2008 vs. their 2006 tops, and avoid political risk of South Africa. GG, AEM and KGC or the GDX ETF based on the GDM Index, but wait for the broad market sell-off induced pullbacks of at least half their recent rebounds. I believe Silver is starting to acquire some “poor man’s gold” play, that’s likely to expand/if/as/when gold breaks its Mar’’ 08 peak at $1034 (basis Comex Near Active).” ***************

THE ADEN FORECAST P.O. Box 790260, St. Louis, MO 6179. Monthly, 1 year, $250. Includes weekly updates. www.adenforecast.com.

DELIBERATIONS on World Markets, P.O. Box 182, Adelaide St. Station, Toronto, ON M5C 2J1. 1 year, 18 issues, $225. Introductory Trial:  issues, US$9.

Ian McAvity: “In my Zurich, Switzerland speech on Feb. 9th, I was more bullish on gold and silver than I’ve been in several years, and I emphasized silver, piggy-backing on expected gold price strength. The Gold/Silver ratio has shown a range of 50:1 to 80:1 in recent years, and coming off the low side, it had turned up and looked likely to try for 50:1 once again. (The ratio is gold divided by silver…at $1200 gold that would imply $24 silver, i.e. one ounce of gold could be acquired for just 50 ounces of silver, for an example.) My enthusiasm for gold and silver is not as high for the Gold Miners shares, in part because they lifted their crash lows so far and so fast. Looking at the Shares to Metal ratios, the Sep/Nov crash sucked all the oxygen out of them, down to levels not seen since the 2000 bottom. At those levels I’m very bullish on the sector. But they rebounded so quickly, retracting half or more of their crash, the upside potential runs into the risk of pulling back to test those lows in the event of a major hit to equity markets in general. If the S&P breaks 10% to 20% below its November

Gold run is both currency related and focused on the money printing

Mary Anne & Pamela Aden: “Gold is approaching its record high area. The ongoing current A rise that started last November is the strongest in this bull market and the strongest since 1999. Since this is an abnormally strong ‘A’ rise in an abnormal world recession, if gold reaches a new record high above $1004, gold is most likely embarking on the start of a great bull market rise. The eight year cyclical low will then have been last November’s low. Gold could then jump to the $1200 level as its next target. Keep an eye on $910 as gold’s ‘A’ rise is very strong above it. Gold’s indicator is now topping in a high area, and while it could stay topping a while longer, it’s saying that gold’s strong rise could end soon. Silver is also bouncing up following gold. It quickly rose to its 65 week moving average but if it closes back above it at $14.60, it would be a very bullish sign. Silver is very strong above $12.90. Gold and silver shares are rising and while the XAU index hasn’t been as strong as gold, it’s still strong above 124, and it has room to rise further. Resource and energy continue to be pressured by the weaker global economy. As long as the economy is weak, these will be too. Interesting and a possible bright sign is the firmness in copper while oil continues to hold above its December low. If both copper and oil stay above $1.26 and $33.80, respectively, they will continue to bottom. They would begin to look like a rebound rise is at hand once they close above $1.52 and $44, respectively. Keep your positions.”

Gold could be embarking on the start of a great bull market rise

16

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Louis Paquette: “I have been covering Hathor Exploration (TSX: HAT; $2.64) for some time now because; a.) Uranium is looking better having moved far enough down in price and b.) Hathor has made the most important uranium discovery of the decade, with numerous sizeable intersections of well over 1% uranium so far at their “Midwest NE” discovery in the Athabasca Basin. But there is another way to play this and that is through their smaller partner, Terra Ventures Inc. (TSX.V: TAS; $0.50) which holds the 10% carried interest in the play through to pre-feasibility. I know many readers prefer the explosive leverage of a stock priced under a dollar vs. a stock priced in multidollars. It also holds some other assets which may not be priced into the stock. This may also be a pivotal time to get exposure to this play given the aggressive drilling program currently underway. Assets 1. 10% carried interest in Hathor Exploration’s Midwest NE Roughrider discovery, Athabasca Basin. As of the closing prices on February 10th of $2.51 per share, Hathor currently sports a market cap of $214 Million. At $0.50 per share, TAS has a market cap of $26 Million, somewhat more than 10% of Hathor’s m/c. This can partly be explained by the fact that Terra’s interest is “carried’ and that they don’t need to fork out millions in exploration expenses, and partly by Terra’s strong cash positions of roughly $10 Million or $0.20 per share. A new four drill, 22,000 meter drill program got underway in January. The operator, Hathor, is working its way toward the most prospective, yet previously untested “unconformity” zone. Often in the Athabasca, this is where the greatest concentration of Uranium can be found. Success here could boost the size of the discovery considerably from a currently estimated 30 million pounds to 100 and send the stocks of both companies through the roof. 2. 100% Interest in Lac Kachiwiss & North Yellow Cat properties, Quebec. These properties have a historical resource of 11.46 Million pounds of Uranium (not 43-101 compliant). The company has just completed a drill program as part of the process of bringing this historical resource into 43101 compliant status. I don’t believe the stock price reflects the value of this asset. 3. 10% stake in Titan Uranium’s Castle project, Athabasca Basin. The property is located

Another way to play the Uranium discovery of the decade

25 kilometers south of the past producing Cluff Lake Mine, owned by Areva Resources. Fundamental Resource Corp. (www.researchfrc. com) has released a report on the company dated January 21st, valuating the various assets of the company and have come up with a combined valuation of $1.15 per share. This does not include any additional resources added as a result of this years extensive drilling program. Contact Ryan at 604-683-0911, or toll free at 866683-0911 or visit www.terrauranium.com.

Market Outlook
THE PRIMARY TREND 700 North Water St., Milwaukee, WI 5202. Monthly, 1 year, $80.
Barry Arnold: “After the brutal 2008 experienced by equity investors, January’s bullish first step was refreshing – and short-lived. The stock market was up by 258 points (as measured by the Dow Jones Industrial Average) on the very first trading day and has been down ever since (although the S&P 500 Index and Nasdaq Composite both peaked two trading days later on January 6th). In fact, by the time the month was over, the DJIA had recorded its worst January in its 113-year history (please see table at right). The –8.84% drubbing in the Dow in January is the fifth month in a row that the stock market is down. The bear market is not only vicious but relentless. Does a poor start to the year portend further weakness or a reflex rally? Many market watchers cling to the January Barometer (devised by Yale Hirsch in 1972), which states that “as the market goes in January, so goes the year.” According to Hirsch’s Stock Traders Almanac 2009, since 1950, the January Barometer (using the S&P 500) has a 74% accuracy rate. Our table, using the DJIA statistics, shows how the stock market performed one month, three months and one year after the nine worst Januarys in history. If you were expecting a gangbuster bull rally of +3040% after a bruising start, unfortunately you won’t find the message in these tea leaves. In fact, it’s much more sobering. In the one-month and three-month short-term statistics, it is hit or miss. Based on the one-year figures, in only three of the nine cases did investors actually recoup their January losses and make gains. Fortunately, the Super Bowl Indicator says 2009 will be an “up” year (since the Pittsburgh Steelers won and they are an original NFC team). Also, inaugural years where Democrats take or maintain the throne have an average gain of +7.31%. And lastly, the “Decennial Pattern” is bullish, with years ending in “9” averaging +10.15% over the last 11 decades. Cheer up!”

A Bad Beginning

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17

Gold Producer Aurizon Mines Is Utilizing Cash Resources to Grow Production Profile; Strong Cash Flow, Exploration Potential
Aurizon is a gold producer with a growth strategy focused on developing its existing projects in the Abitibi region of northwestern Quebec, one of the world's most favourable mining jurisdictions and prolific gold and base metal regions, and by increasing its asset base through accretive transactions. Exploration is currently being conducted at Casa Berardi, as well as at Aurizon's other gold project, Joanna, and its' gold/uranium project, Kipawa. Aurizon's combined property holdings cover in excess of 00 square miles of prospective geology in the Abitibi area of Quebec. Aurizon Mines commenced commercial gold production in second quarter 2007and is expected to produce approximately 150,000 - 155,000 gold ounces in 2009.

AURIZON MINES LTD. NYSE Alternext: AZK • TSX: ARZ Contact: David Hall, President and CEO Suite 3120, 666 Burrard Street Vancouver, BC Canada V6C 2X8 Toll Free: 888-411-GOLD (4653) Phone: 604-687-6600 Fax: 604-687-3932 [email protected] www.aurizon.com MINEFINDERS

Minefinders Producing Gold and Silver at Flagship Dolores Mine

CORPORATION LTD. Minefinders' flagship Dolores Mine in Chihuahua, Mexico commenced production of gold and silver in 2008 and is NYSE Alternext: MFN • TSX: MFL Contact: Mike Wills, expected to produce more than 1.7 million ounces of gold and 6. million ounces of silver from heap-leach operations over Investor Relations a 15.5 year mine life. There is potential to increase production Ste. 2288, 1177 West Hastings St. from operations by increasing high-grade recoveries with Vancouver, BC, Canada V6E 2K3 the addition of a mill and by expanding the mine into areas Toll Free: 866-687-6263 of additional mineralization.Minefinders also has a pipeline of advanced and Phone: 604-687-6263 grass-roots exploration properties and the development expertise to bring new Fax: 604-687-6267 mines into production.The Company is exemplified by strong fiscal management, [email protected] minimal shareholder dilution, and responsible disclosure. In its mining operations, www.minefinders.com it is dedicated to safety, social responsibility, and environmental stewardship.

Minera Andes Doubles Production at San José Project
Minera Andes has successfully made the transition from exploration to an exploration company that also receives income from a discovery made by its geologists. Minera Andes' co-owned San Jose silver/gold mine in southern Argentina is operating at its expected level, producing about 59,000 ounces of gold and three million ounces of silver on an annualized basis. Minera Andes receives 9 percent of the value of San Jose's production. Work is well underway to double the output of San Jose, tentatively, at the end of 2008. This means metal production would increase to about 120,000 ounces of gold and six million ounces of silver per year.

MINERA ANDES INC. US OTC: MNEAF • TSX: MAI Contact: Art Johnson, Investor Relations 111 E. Magnesium Rd., Ste. “A”, Spokane, WA 99208 Phone: 509-921-7322 Fax: 509-921-7325
Canada: (877) 689-7018

[email protected] www.minandes.com VELOCITY MINERALS LTD. TSX: VLC Contact: Kenneth R. Holmes, Chairman 630 - 666 Burrard Street Vancouver, BC V6C 2X8 Canada Toll Free: 866-920-0567 Phone: 604-689-7411 Fax: 604-689-7212 [email protected] www.velocityminerals.com

Velocity Minerals Advancing Significant Molybdenum Properties In British Columbia
Velocity Minerals Ltd. is focused on the acquisition and development of advanced or high-grade molybdenum mineral properties. Velocity presently owns the mineral rights to two molybdenum projects in northern British Columbia and is actively pursuing other properties in North America and internationally. The company has a skilled management team with decades of experience in both the mining industry and public financial markets and intends to focus the majority of its efforts on the further exploration and development of the company's Mt. Haskin and Cassiar Moly projects. Previous work on Mt Haskin has established a significant historic mineral estimate and identified potential extensions of that mineralization.

18

Ur-Energy – The Right People, The Right Projects, The Right Proceeds, Right Now
drill holes, monitoring wells and exploration drill holes. This aggressive drilling program was to better define the orebody within Mine Unit #1 for wellfield planning. The program included installation of 46 monitor wells and two pump test wells for the first proposed mine unit. The wells will be maintained long-term and eventually used for production monitoring. Ten additional regional baseline monitoring wells were installed at the request of the Wyoming Department of Environmental Quality. Two water wells were also completed. U r- E n e r g y a l s o d r i l l e d 99 exploration boreholes to depths ranging up to 1200 feet, Ur-Energy’s North American Uranium Projects identifying potential extensions Lost Creek Project of the main mineral trend to the Moving Ahead south and a new roll front system around 850 feet The Lost Creek deposit – 4 miles north of Rio deep – including a drill intercept of 9.5 feet with a Tinto’s Sweetwater Mill in Wyoming’s Great Divide Prompt Fission Neutron value of 0.137% pU3O8. Basin – is about three miles long with mineralization The Nuclear Regulatory Commission completed its occurring in five main sandstone horizons extending initial Technical Review of the Lost Creek Application to 700 feet deep. The Lost Creek area consists of 969 for a Source Material License in November. Urunpatented mining claims and one Wyoming State Energy is reviewing and assembling responsive lease for a total of 20,540 acres. information as requested. Wyoming is the leading producer of uranium Production at Lost Soldier Planned Next in the U.S., hosting four major uranium mining Ur-Energy’s Lost Soldier project, located about 14 districts that together have produced over 200 million miles northeast of Lost Creek, is slated to become the pounds of uranium from sandstone hosted deposits. Company’s second production project. Lost Soldier Wyoming utilizes in-situ recovery methods (ISR) for already has 4,000 historic drill holes defining 14 extracting uranium from underground ore bodies, mineralized sandstone units. The property has NI leaving overlying rock strata and land surfaces intact. 43-101 compliant, measured resources of 5 million Groundwater, charged with oxygen and bicarbonate pounds of U3O8 at 0.064%, as well as 7.2 million soda, is injected into the deposit through a series pounds of U3O8 at 0.065% indicated, and 1.8 million of wells and the uranium bearing solution is then pounds of U3O8 at 0.055% inferred. pumped to the surface and piped to the plant for Production of about 1 million pounds of annually extraction of the uranium from the solution. The is anticipated from Lost Soldier about two years resulting solution, now barren of uranium, is then after Lost Creek’s startup. Currently, the Ur-Energy refortified with oxygen and re-injected into the ore team is performing detailed geologic and engineering body. The uranium slurry is processed and dried into evaluations of the Lost Soldier project in preparation U3O8 or “yellowcake” and packaged for transport. for the permitting and licensing applications. This process continues until uranium levels in the production fluid drop to a point where recovery is no US and Canadian longer economical. The Lost Creek deposit contains NI 43-01 Exploration Programs compliant indicated resources of 9.8 million pounds Early stage exploration drilling of 12 holes for a of U3O8 at 0.058% and additional inferred resources total of 11,370 feet was completed at the EN project of 1.1 million pounds of U3O8 at 0.076%. in August and early September. Roll fronts and In 2008, seven rigs at Lost Creek to drilled 459 mineralization were identified in several horizons holes for a total of 303,040 feet, including delineation Ur-Energy Inc. (NYSE Alt US: URG; TSX: URE), a uranium mining company with a world class management and development team, has successfully guided its Lost Creek project in Wyoming to the brink of production. “2008 was a significant year for Ur-Energy. Our NYSE Alternext, formerly AMEX, listing enables easier access for U.S.-based investors. We completed an aggressive drilling program at Lost Creek, saw our initial technical review of our application for a source material license completed, and we have the capital to take us through to production in 2010,” says President and CEO Bill Boberg.

19

its ongoing discussions with First Nations groups and of sandstones. In addition, over the summer, more Aboriginal-owned business corporations to secure an than 746 miles of airborne geophysical surveys exploration agreement for the Screech Lake Project were completed in Wyoming. The Company put in the Thelon Basin, Northwest Territories, which its other U.S. properties, including LC North and would allow the Company to proceed with a re-filing North Hadsell projects, on hold to further advance of a drilling proposal. the development of the Lost Creek Project. In September, the Company dropped exploration lands Investment in South Dakota (approximately 72,000 acres) while Considerations maintaining in excess of 67,000 acres in Wyoming Despite recent declines in uranium prices, demand and Arizona. An in-house team of geologists continues for uranium continues to exceed production. The U.S. to evaluate the Company’s massive well log and alone only produces 8% of the uranium it consumes. exploration database for generating new exploration Considering that less than 10 companies supply about targets. 80% of the estimated world’s uranium production, The Bootheel Project, LLC, in which Target and that only eight countries produce almost 60% Exploration & Mining Corp. (“Target”) is earning into of that uranium, Ur-Energy will play into a rather a 75% interest over a four-year period, now covers rarefied company as it joins the ranks of uranium a defined area of approximately 10,500 acres. In producers. The mining operation, Boberg says, will October, Target confirmed its completion of 93 drill be relatively low cost and therefore not be affected holes for a 50,163 foot drilling program. The purpose by lower uranium prices. of the program was to bring the historic resources Ur-Energy also sits at a fortuitous confluence into NI 43-101 compliance. of events – growing demand for uranium in a In Canada, Ur-Energy is focused on finding power-starved world, a healthy bank account, and “unconformity” uranium deposits, a relatively rare an anticipated solid and growing cash flow from and extremely high-grade ore deposit. These deposits, production. These conditions present intriguing first recognized and discovered in Australia, were opportunities for Ur-Energy to acquire new uranium later found in Saskatchewan under the Athabasca properties from underfunded companies struggling Basin and in the Thelon Basin in the eastern Arctic. to succeed in a down market. Ur-Energy holds three exploration properties in the “We won’t go on a buying spree, but if a really Thelon Basin and one in Baker Lake Basin. worthwhile opportunity comes up, we’ll definitely The company’s wholly-owned uranium exploration take a hard look,” says Boberg. properties encompass more than 129,000 acres in Meanwhile, production planning remains on track. Canada. Land holdings in the Northwest Territories Permitting is nearing completion. The final plant include the Screech Lake, Gravel Hill and Eyeberry design is clearing the way for equipment ordering. Properties in the Thelon Basin, as well as the Bugs Boberg says supply contracts should be finalized in Property in Kivallig region, Baker Lake Basin of the coming months, the Nunavut. first well field should be Several targets were operating by Q4 2010, and examined and prioritized income will begin filling during the 2008 summer the company’s coffers. Urprogram at the Bugs Project Energy is also moving located in the Baker Lake forward with “exciting” Basin, Nunavut. Radon exploration programs on sampling techniques, prosits multiple properties. pecting and rock sampling “We have the money to were all utilized. This work, take us into production,” completed in early August, says Ur-Energy President led to interpreted areas of UR-ENERGY INC. Bill Boberg. “We have cahydrothermal alteration, pable and dedicated people elevated radioactivity and NYSE Alt US: URG • TSX: URE with nearly 300 total years high radon flux. From late Contact: Bill Boberg, President and CEO of direct uranium experiAugust to mid-September Investor Relations: Dani Wright ence in all phases from 2008, a total of 2,905 feet 10758 W. Centennial Rd., Ste. 200 exploration and developof exploration drilling conLittleton, CO 80127 ment to mining. These sisting of six drill holes Toll Free: 866-981-588 people make up one of the was completed. The proPhone: 720-981-588 • Fax: 720-981-56 best uranium exploration gram was terminated early E-Mail: [email protected] and operational staffs that due to drilling equipment exist in the world today. Web Site: www.ur-energy.com problems. Results of the And in the very near fuprogram are being evaluShares Outstanding: 9.2 million ture, we will be producing ated by the Company’s (as of Sept. 0, 2008) real product from Lost Canadian Exploration of52 Week Trading Range: Creek, at the rate of about fice, and drill core assays URG (U.S.): Hi: $1.96 • Low: $0.28 1 million pounds of uraare pending. URE (Canada): Hi: C$2.72 • Low: C$0. nium a year.” The Company continues

20

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Eric Hadik: “Stock indices completed their projected 35-50% decline in late-2008 but are expected to see another decline – to new, multi-year lows – take hold in the second half of 2009. Interest Rates (opposite of Bond direction) are likely to consolidate in the coming months but could – on the whole – see more downside into mid-2009 and potentially into mid-2010. Gold & Silver – Long-term uptrends in Gold & Silver could resume in the second quarter of 2009. Consolidation likely into mid-2009. Dollar – Long-term trend down and expected to enter a new wave lower, later in 2009. This could carry the Dollar lower into MAJOR, long-term cycles in 2013-2014. In the interim, expect consolidation with the potential of a new rally exceeding the Nov. 2008 peak. Crude Oil – Long-term trend up in midst of major correction (.786 retracement). Energy markets fulfilled projected drop from July 2008 cycle high to Jan. 2009 cycle low and could see a bottom take hold. Commodities – Long-term trend neutral and closely linked (inversely) to Dollar.” ****************

Overview for longer-term investors

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THE DINES LETTER P.O. Box 22, Belvedere, CA 9920. 1 year, 1 issues, $295. www.DinesLetter.com.
James Dines: “Februarys are somewhat bullish for the DJI, averaging a 0.10% rise in the last 59 years, but somewhat bearish for the S&P 500 with an 0.11% decline for the same period. It usually follows whatever the Major trend has been, currently down per the DJI of our 2009 Annual Forecast Issue, but holding above the November 08 low. The case for bears has been confirmed by a down January, per its “barometer.” As noted in our 2009 Forecast Issue, the 05 Dec 08 low has already been broken, a negative omen for the year. With the Steeler’s victory, the Super Bowl Indicator remains as the only bullish Seasonality, something that’s not taken too seriously. March stocks are usually either neutral or modestly higher, which frequently evolves into a market TOP either in April or May. In our Research Department’s count of the 59 years since 1950, the Dow-Jones Industrial Average (DJI) in the month of March rose 37 times and decline 22 times. There have been fewer declines in recent years. These stats are comparable with the S&P 500 which, since 1950, ranks March as the fifth best-performing month. March, however, gets even better for the S&P 500: taking the last fifteen odd-numbered years, there were 11 risers and only 4 downers, up almost 3 out of 4, favorable for 2009. The count for even-numbered years was 9 up and 7 Continued on next page

TDL’s Seasonalities: March

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21

Rebuilding A Portfolio Will Take Time, Effort
Continued from page 1 value styles in order to reduce risk. “The priceearnings ratios of stocks are more in line, expectations are low and valuations are low.” More than ever, you need a budget you can follow and a regular plan to put your money to work. “Handling this market is akin to trying to lose weight, because to lose a pound you must burn more calories than you take in,” said Paul Larson, editor of the Morningstar StockInvestor newsletter in Chicago. “Similarly, you must save more money than you spend.” A bigger blunder than avoiding investments is panicking and dumping everything you own. Although money-market funds and bank certificates of deposit provide a safe underpinning for your portfolio, their low returns mean you’ll eventually need the longer-term inflation hedge that stocks historically have provided. “Resist the urge to sell everything that dropped in value, for this market isn’t going to persist forever,” Larson said. “Yet if you do have too much in equities, this would be a good time to lighten up, because you Continued from previous page down. April Tops were reached in 1966, 1971, 1981, and 1987. May Tops were reached in 1965, 1969, 1972, 1982, 1992, 2001, 2006, and 2008. Nasdaq has a below-average rank in March, fourth from the bottom since 1971, with 24 ups and 14 downs. TDL research additionally concluded that March is a pivotal month, often moving in the opposite direction from that of February, or just leveling off in preparation for a decline starting around April or May. March 1997, 2002, 2004, and 2005 exemplified this when the DJI plunged after an up February. March 2005 was particularly significant as it included the Dow’s peak at 10,984.50 on 7 March 05, after which it plunged and then flattened for the next 7 months. February and March 2006 were both up but started leveling off on 20 March 06 before bottoming on April 4, 2006 and June 15, 2006. March 2000, 2003 and 2007, and 2008, also followed our “rule,” having risen after a down February. Our 14 March 08 “Buy” capitalized on this Seasonality, seizing the last rally’s rise of up 1,282 points through 19 May 08 before the Dow’s waterfall decline. The rule did not work in 2001, with both February and March lower, confirming that no Technical Indicator is perfect. The Dines Gold Stock Average (DIGSA) rose 21 times out of the last 41 months of March, and declined 19 times (neutral once), for a marginally bullish ratio of 53%. The Dines Silver Stock Average (DISSA) rose 24 times out of the last 41 months of March, declined 16 items and was neutral once, for a bullish ratio of 60%. March Seasonalities for the precious metals shares are an even bet for gold, but somewhat bullish for silver.” will need balance and diversification.” If you’re mentally and emotionally up for stock investing, Larson sees potential in health-care stocks, especially if the market downturn is prolonged and favors reliable industries. Johnson & Johnson (JNJ) and Novartis AG (NVS) are solid companies with good balance sheets, cash flow, industry positioning and discounted stocks, he said. Consumer staple stocks should also hold up relatively well versus the rest of the market, Larson predicts, with Coca-Cola Co. (KO), PepsiCo Inc. (PEP) and Diageo PLC (DEO) his favorites. “If any investor has a low tolerance for risk, the financial space – primarily bank stocks – is still an area with enormous risk but also the most potential going forward,” Larson said. “If I was placing money on a stock I thought would triple in the next year it would be a bank stock, but if I was choosing one that could potentially fall to zero, it would also be a bank stock.” Jack Bowers, editor of the independent Fidelity Monitor newsletter (www.fidelitymonitor.com) in Rocklin, Calif., advises conservative investors to move into high-yield corporate bond funds now so “you get paid while you wait” for the market to revive. Revival of stocks may take a while, but he does see improvement. “We’ve seen a sense of relief when companies announce earnings only down by one-third from last year, since that’s not so bad in this environment,” Bowers said. “It also suggests that market valuations are getting in line with reality.” So much has to be decided in Washington and on Wall Street, progress will be gradual, experts said. Bowers expects a three- to five-year recovery period for stocks without significant progress for another year. The “fear factor” has caused all bank stocks to get clobbered, and he would avoid the stocks of autos and big banks, though he sees deals in smaller banks. He concurs with Larson’s confidence in a comeback by consumers. “The place to play right now is probably consumer stocks because they’ll benefit from the stimulus package and were the first ones to languish a long time ago when housing prices started going down,” Bowers said. “Consumer stocks aren’t dropping as much on the down days, and they’re rising more on the up days.” So move ahead. Don’t look back. Editor’s Note: Andrew Leckey’s column, “Successful Investing,” appears regularly in The Bull & Bear Financial Report, both in print and online.

TheResourceInvestor.com

GOLD • SILVER • URANIUM • PLATINUM/ PALLADIUM • DIAMONDS • BASE METALS

Bull & Bear’s
JUNIOR RESOURCE COMPANIES Aura Silver Resources Inc. Exploring for Silver in Proven Districts and Safe North American Jurisdictions www.aurasilver.com Aurizon Gold Mines Ltd. Commercial Gold Production Generating Strong Cash Flow at Casa Berardi Mine in Quebec www.aurizon.com Coral Gold Resources Portfolio of Properties on Cortez-Battle Mountain Gold Trend www.coralgold.com Eastmain Resources Inc. Advancing Two Gold Properties in Quebec Worth $100 Million NAV Each www.eastmain.com Fortune Minerals Limited World Class Anthracite Coal Projects in Canada Proceeding Toward Production www.fortuneminerals.com International PBX Ventures Inc. Fast-Tracking Potential Billion-Ton Molybdenum-Copper Deposit www.internationalpbx.com Ireland Inc. Intends to Take Columbus Project in Nevada to Production www.irelandminerals.com Minefinders Corporation Ltd. Producing Gold and Silver at Flagship Dolores Mine in Chihuahua, Mexico www.minefinders.com Minera Andes Inc. Doubles Production at San José Silver/Gold Mine in Argentina www.minandes.com Pacific North West Capital Corp. Aggressive Acquisition Program for PGM, Base Metals Projects www.pfncapital.com Playfair Mining Ltd. Building Strategic Tungsten Resource www.playfairmining.com Rocher Deboule Minerals Corp. Potentially Massive Manganese Deposit; Targeting Steel Industry www.rdminerals.ca Romios Gold Resources Inc. Huge Land Positions in Canadian Copper-Gold-Silver Mining Camps www.romios.com Rye Patch Gold Corp. Building Sizeable Gold/Silver Resource on Prolific Nevada Gold Trends www.ryepatchgold.com San Gold Corporation Growing Low-Cost Gold Producer in Manitoba’s Rice Lake Gold Belt www.sangoldcorp.com Shoshone Silver Mining Lakeview District area play Zacatecas late stage exploration www.shoshonesilvermining.com Teryl Resources Corp. Developing Multiple Gold Properties in Alaska www.terylresources.com Uranium Bay Resources Inc. Focused on Delineating Large Scale Uranium Deposits www.uraniumbay.com Ur-Energy Inc. Exploration and Development of Uranium Properties in the U.S. & Canada www.ur-energy.com Velocity Minerals Ltd. Advancing Significant Molybdenum Properties In British Columbia www.velocityminerals.com INVESTMENT BOOKS & TAPES The Bull & Bear Financial Report Best Prices on the Web www.TheBullandBear.com

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