All You Can Eat Broker Buffet

May 3rd, 2009 – Comment

Lou: My broker brought to my attention two plays he likes. One is San Gold – symbol SGR and the other UTS energy, both on the TSX. It was also suggested that I put Encore Renaissance – symbol EZ on my “watchlist”. Any comment on these plays? George Hi George, A lot of my best […]


About the Author

Lou Schizas is an equities analyst, investor, entrepreneur, professor and television and radio personality – and a true believer in the happiness-inspiring powers of capitalism.


Read the author's full profile.


Further Research

Read more about Energy, Precious Metals.


Lou:
My broker brought to my attention two plays he likes. One is San Gold – symbol SGR and the other UTS energy, both on the TSX.

On The Make

On The Make

It was also suggested that I put Encore Renaissance – symbol EZ on my “watchlist”. Any comment on these plays?

George

Hi George,

A lot of my best friends are brokers and I enjoy every minute I get to spend talking and interacting with them because they are in the relentless pursuit of finding great opportunities. It doesn’t always work out that way but thats the nature of the business.

Lets take a look at the three stocks and see which ones might provide a good opportunity.

Needs To Take Out the High

Needs To Take Out the High

San Gold Corp ( SGR TSXV) has had a good run from the 52 week low it hit last fall. Now what it needs to do is take out the high from last summer.

It might be asking too much of a stock that has already been very generous to investors who  got on board for the run up. There is talk that San Gold may be a takeover target which may be why your broker is interested in SGR.

Management has been successful in developing its properties in Manitoba and expanding its resource base.

UTS Energy ( UTS TSX) is an interesting call given that Total SA was recently thwarted in its effort to buy the company.

STILL A TARGET?

STILL A TARGET?

I suppose that the question becomes what next for the company? The merger of Suncor and Petro- Canada puts a new spin on the Fort Hills oil sands project where UTS holds a 20% stake.

There are many potential outcomes for UTS and clearly the fight with Total was all about the offer price being too low.  The Fort Hills assets are very valuable but will take considerable capital to develop. UTS has enough capital to take it through 2011. If you take a position in this one you are depending on management to surface more value than what Total offered.

The value might come in the form of a sale of assets or a business combination with another suitor. In any case management has to step up and deliver or face shareholders with a bone to pick

Small Fry

Small Fry

When it comes to Encore Renaissance Resources Corp. ( EZ TSXV)  your broker has suggested a junior mining company with listings on the Venture Exchange, Germany, and the Pink Sheets.

I have mentioned before that when I see a stock listed on the Pink Sheets it puts a caution flag on the track for me because of the high risk environment. If you decide to take a run at EZ be aware of the risk of combining a junior exploration company with an lightly regulated environment.

What I can tell from the three recommendations from your broker is that one of you or both of you have a better than average appetite for risk. Just make sure you know who has a need to belly up to the all you can eat buffet.

Happy Capitalism!

Categories: Energy, Precious Metals
Content © Relentless Economics - Charts courtesy Stockcharts.com - Employees Entrance - Optimization Media