selkirk are you familiar with Noront Resouces

[LOR]

Wednesday morning thoughts from TC

Good morning. Overseas in Asia the major indices continue to trade in positive territory this morning, with the Hang Seng up .84% and the Nikkei up 7.74%. Japan's Nikkei average climbed 7.7 percent in volatile trade with exporters climbing after the yen weakened on expectations that the Bank of Japan will cut interest rates later this week. Japan's central bank is considering cutting rates from an already low 0.5 percent at Friday's policy meeting. The reports about the BOJ's rate cut helped trigger short covering, fueling the rally, however, the euphoria is expected to be short lived as it really doesn't improve global economic fundamentals.

In Europe the major indices opened sharply higher, following the rise in the US and Asian markets, as investors bet on a US rate cut today. Bank stocks are leading todays rally as investors bet on a U.S. rate cut that could help shore up the battered economy. On the economic calendar for today there is the Durable Goods Orders numbers at 8:30am, followed by the Crude Inventories numbers at 10:30am. At 2:15 this afternoon the Fed releases their policy statement and a decision on the interest rate direction will be announced. It is widely expected the Fed will announce a 0.5% rate reduction today. For some reason I think we may be in for a surprise today and get less of a cut than many are expecting. If the Fed cuts by the 0.5%, as expected, the rate will go down to 1% and the Fed will have it's back against the wall, with very little room to manoeuvre in the future. I just don't see the reasoning behind a 0.5% rate reduction, since the banks don't appear to be lending anyways. My thoughts are why not save some bullets until the bailouts are actually working and we see banks lending again, then give the economy the boost it is looking for. Commodity prices, on the back of the expected Fed rate cut, are up this morning in overseas trading, which should bode well for the Canadian indices if the trend continues.

Back in McFaulds Lake, NOT had a disappointing day as it share price was down over 6% and closed at the low of the day. It appears many retail investors were upset with the results of the proxy battle settlement between NOT and Rosseau and those who were buying shares at recent lows took the opportunity and took profits. The chart for today is showing support at $.78 and resistance at $1.16, the 13(MA) is at $1.06 NOT continues to struggle with breaking atop it's 13(MA) showing the downtrend is still intact. Today should be the tell tale on the future direction of NOT, now that the sell on news, profit taking is over. Will Bay St rally behind NOT, now that a change in management has been announced, is the big question.

Unless NOT can come up with some new discovery on the nickel front, or some knock your socks off assays from it's current discoveries, my bet is NOT's share price will do the slow bleed. NOT has been in the news lately because of it's proxy battle, which in turn has led to some above average volume. Now with the proxy battle becoming old news, I expect to see the volume of shares traded to quickly dry up, unless there is a constant stream of news. Then the slow bleed should occur, as it is becoming glaringly obvious, investors have very little appetite for high risk exploration stocks trading on the TSX-v exchange. Investors need not look any further than where the TSX-v sits at this time, it is struggling to hold the 800 level and I don't see this reality changing any time soon. There is nothing wrong with NOT fundamentally, it is just a victim of the economic times the worlds equity markets are facing. At a time when many of the worlds largest and best corporations are trading at 52 week lows and heading lower, it should be obvious to investors there is simply no reason to expect NOT to buck the trend. As much as I believe NOT's share price is severely undervalued in normal times, one must face the reality, that these are far from normal times. Personally I have took profits and sold out my entire position in NOT and have decided to sit on the sidelines, until the turmoil in the equity markets abates. To be blatantly honest, I play the markets to make money and have no interest to become a bagholder in stocks trading on the TSX-v exchange, at this time. JMHO

FWR and FNC appear to be the only other stocks in McFaulds Lake that are getting any interest by investors. They both have current drill programs that have some exciting possibilities. The problem is at this time, do investors really care what they discover. I like both of these stocks, but own no shares currently in either of them. These stocks have the same problem as NOT, investors simply aren't interested in speculative stocks. As soon as we think these stocks are just so cheap they just can't fall further, we get a dose of reality and watch in horror as the share prices do the slow bleed on lack of interest. I have no idea when the tide will turn and investors will come back into these TSX-v stocks, but until they do I see no reason to own any of these stocks. JMHO

On a daily basis it is becoming increasingly difficult to cover the McFaulds Lake stocks in the morning thoughts posts. It is tough to remain positive on these stocks when it is apparent investors have very little interest in them. What I don't want to happen is to write negative things day after day about stocks that I don't own. I realize that many investors are trapped into these stocks at much higher share price levels than they are currently trading at. To continue to write bearish comments about the McFaulds Lake stocks and crush investors spirits about these stocks is really not my gig. But to sit here and pump stocks that I see very little hope for in the short term is not my gig either. I find myself covering the news what is happening in the worlds equity markets to try and find content worth covering in the morning thoughts posts. I am just not sure that this is what the readers of this board really want to read about on a daily basis. So it is time to do some soul searching here and make a decision if the morning thoughts posts should continue. I will watch and let the readers of these posts make the decision for me.

Best of luck to all McFaulds Lake investors.



Al

 

[LOR]

Letter from Richard Nemis
Posted by: AGORACOM on October 30, 2008 09:43AM






I was introduced to a young man a couple of years ago who kept my secretary busy by phoning repeatedly asking for a short meeting to introduce his company. She said that he was so persistent that without confirming with me, she set a time for him and I to finally meet. That young man was Scott Purkis and the company was Agoracom. I would like now to take this opportunity to say a heart felt sincere thank you to Scott and the whole Agoracom team. Without the communication through the Agoracom system thousands in the retail investor community would have been left in the dark with respect to these recent Noront events. The people who write on the Agoracom site, are one fabulous group of loyal and faithful Noront followers. Their interacting with the Noront team has kept the interest of the project up front in the investor world.


In the past, minority shareholders did not have a voice against the much larger funds and shareholders, but you as a group became a force, an entity unto yourselves and indeed, a force to be reckoned with. You should all be very proud of all your efforts. No longer will the retail investors be the pawn in a chess game, there now lies the opportunity to make it to the other end of the board and become a King.


I would like everybody to believe in the R.O.F. as a real project with astronomical potential. I am sad that I will no longer be at the helm, However, times must change and new leadership is sometimes necessary for a company to reach the next phase.


After our press release issued earlier this week, I was amazed to receive so many wonderful letters and emails expressing good wishes for my future. Well, I?d like to let one and all know that such support is overwhelming, it certainly makes one feel very humble and I am very proud to have been part of the Agoracom HUB .


I have had success in the past and there is still many tomorrows to come with lots of drills waiting to discover the next big hole and I have many plans to keep exploring After today, I am going to take a much needed break. I think I will have a glass of wine, do some fishing and relax and come back with a vengeance, everybody get ready for round two. I?LL BE BACK


Thank you Scott and the Agoracom team and special thanks to all retail investors who have been so extremely supportive.


With more thanks than can be expressed


Richard Nemis

 

[LOR]

Thursday morning thoughts from TC

Good morning. Overseas in Asia the major indices are up sharply this morning, with the Hang Seng up 12.82% and the Nikkei up 9.96%. The Bank Of Japan is expected to lower interest rates to 0.25 percent from the current 0.50 percent at its policy meeting on Friday, joining efforts by the U.S. Federal Reserve and other central banks around the world to cushion the economic fallout from the global financial crisis. The rallies in the Asian indices are the initial signs that investors are rediscovering an appetite for risk in response to the global efforts. Rising commodity prices are another sign the coordinated efforts of the central banks are working, to put a halt to the worst financial crisis since the Great Depression in the 1930s.

In Europe, the major indices are much more subdued than the Asian indices. However they are trading in positive territory, showing investors have a change in sentiment. The interest rate cuts are changing investor sentiments but the worries that they may not be enough to head off a global recession are apparent. The rate cuts are encouraging. But we're dealing with a slump. It's not a matter of whether it's bad, it's a matter of how bad. Leading the rally in Europe today are the financial stocks, also the mining stocks are putting in a strong showing as commodity prices are improving now that the $US is weakening. It is great to see the indices in rally mode, but investors may want to err on the side of caution, it is only a rally at this point. We can fall back as quickly as we are rising here, there is still a lot of bad news on the horizon. Of course it has often been said bull markets have to climb a wall of worry, and after the bear market declines we have experienced lately, it is nice to at least see the indices, crawl back to the wall.

Over on this side of the pond, in North America, the US futures are up sharply this morning, with the DOW futures up over 300 points, as I type. Yesterday the DOW lost 470 points in the last 11 minutes of trading. Investors were blaming the swoon on the rumour that General Electric's CEO made some corporate profit comments, which were seen by traders to be very bearish, we later find out this was nothing but a false rumour. It seemed a little far fetched to me, when I heard this was the reason and after doing a little research we find this was indeed a load of crap. The real reason for the swoon was intervention in the markets by someone with very deep pockets. Remembering back this same sort of thing happened on Monday at the close. We find out that from 3:45 to the close yesterday, that 500,000 E-mini futures contracts were traded. That is somewhere in the neighbourhood of $23 billion dollars of futures contracts hitting the market in a very short time period. Someone with very deep pockets wanted the DOW to finish in the red yesterday. Somehow we should of known once the US Fed got involved in manipulating the markets, things would never be the same again. Talk about the fix being on, free markets as we knew them, apparently is a thing of the past. On the economic calendar we have the Chain Deflator, GDP and Initial Jobless Claims numbers released at 8:30 this morning. Definitely some market moving numbers. On the Canadian indices, it should be another strong open, "if" the commodity prices stay at current overseas levels.

Back in McFaulds Lake, NOT had an uneventful day, as the volume as expected, dropped off sharply. The share price was down 7.69%, as profit takers took some money off the table, now that the proxy battle has been resolved. On the chart, NOT has support at $.76 with resistance at $.96, the 13(MA) is now at $1.03 and falling. The narrowing gap between the support and resistance levels is showing the extreme volatility, because of the proxy battle is now over. NOT is trading at the lower end of it's bollinger band and I wouldn't be surprised to see the share price at or very near to a short term bottom. The profit takers, from those that bought at or near the 52 week lows of last week, most likely have found the exit, evidenced by the sharp drop off in volume. Now the healing process in NOT's share price should begin. However, until we get some sort of news from the new management team, the share price may do the slow bleed and test support levels.

Many are now expecting NOT to do another PP shortly, to add to their $30 million current cash position. This is most likely why we have seen the share price held down in recent weeks. Once the sharks on Bay St, get word a stock is looking for financing they love to put downward pressure on a stocks share price so they can get in at the lowest share price possible. Unless NOT is holding some trump cards on the exploration front, the sooner they get this PP behind them, the better off for the share price. As much as current investors detest the idea of further dilution at these low share prices, I doubt the share price will see much movement to the upside. The current share price is predicting a PP somewhere in the $.75 range. So if indeed NOT is looking for financing, the sooner they get it behind them the better off for all shareholders in the long run. If the ones that were behind Rosseau's proxy battle, are the ones that will provide the financing, for this expected PP, there is an upside chance they may want to do the financing around the $1 mark. This would put a floor under NOT's share price and also limit the dilution factor.

I was reading where a few of the permabulls from Agoracom, are thinking of banding together to put up a fight against doing a PP at these low share prices. They best rethink their stance and realize they are mere pawns in the grand scheme of things around NOT these days. The days of picking up the phone and getting the inside scoop from Nemis, on a daily basis are over and now NOT can act like a real stock. The kind of nonsense we seen over the past year between Nemis and his faithful little gang of permabulls is finally behind us. No wonder Bay St didn't want anything to do with Nemis and wanted him removed ASAP. As much as Nemis was adored by his faithful, many including myself, have felt he was the problem not the solution, in taking NOT to the next level. Dick Nemis was an excellent choice to lead a company like NOT, before they made the Eagle One discovery. But once NOT hit the big time with the Eagle One discovery he did much more harm than good. His constant errors in judgement, like telling his faithful he could do a PP at any time around the $10 level and NOT was worth at least $28 a share, are the kinds of things frowned upon by the boys that matter on Bay St. I often wondered why the BCSC didn't put a muzzle on Nemis long ago, the kinds of info he was leaking to his permabull faithful certainly bordered on being illegal and from a supposed lawyer, Nemis should of known better. Honestly I'm not trying to put the bash on Nemis here, I am sure Nemis is a wonderful man in his own right. However, he just wasn't the kind of corporate leader needed by NOT, once they went from being a two bit mining stock, to a stock with a future. NOT no longer requires a rah, rah promoter running the ship, they need someone with connections on Bay St to take this company to the next level. I think investors in NOT are going to like what the new management team does for the share price in the not to distant future. JMHO

Both FNC and FWR had decent days yesterday in their share prices. Certainly the volume wasn't there in either stock but at least the slow bleed in the share prices came to an end. It is going to take a period of market stability before investors come back into these kinds of stocks, but both of these stocks have drill programs that could come up with discoveries of significance. FWR in particular, definitely has some excellent looking property with some tremendous potential. It appears they have the motherlode when it comes to chrome and have the outside chance of delivering on the nickel front, as evidenced by the maps provided by Prof Mungall at NOT's AGM. Also on the maps provided, it was apparent that FNC also has chrome which should be in decent quantities on their property. Now all Peter Smith needs to do is come up with a decent nickel discovery. As much as I have a current dislike for TSX-v stocks in this current market environment, both FNC and FWR's share prices could be excellent buys, for those with a longer term view in holding stocks. When I look at the maps provided by Mungall, I would have to think FWR's property holds more promise than NOT's. Of course the difference being, NOT has the Eagle One property that we know is a world class orb of mineralization, FWR still needs to prove up with the drill bit, that they have anything of significance, other than the chrome already discovered.

Best of luck to all McFaulds Lake investors.



Al

 

[LOR]

Friday morning thoughts from TC

Good morning. Overseas, in Asia, on the major indices, Asian shares dipped today and have now recorded their biggest ever monthly fall. The Hang Seng was down 2.52% and the Nikkei was down 5.01%. But, optimism that a new round of interest rate cuts may revive a comatose global economy helped many indexes keep their largest weekly gains on record. The MSCI index of Asian stocks outside Japan, is up 13 percent this week, its biggest weekly gain on record but is still down some 24 percent for the month and about 54 percent for the year. Japan's Nikkei hit a 26-year low this week but rallied as much as 30 percent in a three-day surge to Thursday. Oil prices dropped nearly $2 a barrel after data on Thursday showed the U.S. economy suffered its sharpest contraction in seven years in the third quarter, as consumers cut spending and businesses reduced investment. And prices for base metals continued to slide, with copper down a record 41 percent this month alone, on persistent concerns the global economy faces a potentially severe and long recession. Policy makers have responded by cutting rates and injecting liquidity, as well as adopting unprecedented rescues of their banking sectors. After weeks of erosion in investor sentiment, some analysts are now saying, the worst might now be behind us, at least for now. The Bank of Japan cut interest rates to 0.3 percent on Friday, its first rate cut it seven years, but the move was smaller than expected. The yen extended its gains against the dollar, after the Bank of Japan's action. The currency has been supported as investors unwind investments in risky assets that had been funded by borrowing the low-yielding yen. The carry trade continues to unwind and may cause commodity prices to be under selling pressure, until it is completed.

In Europe the major indices are down this morning across the board, most in the 1% to 2% range. Many of the financial stocks are under selling pressure and commodity stocks are selling off tracking weaker crude and metal prices. The actions of governments and central banks are beginning slowly but surely to come together. There is a little bit of confidence creeping back into the markets, but, notwithstanding, there appears to be some more bad days to come. On the FTSE in England the index has gained 8.5 percent this week and is on track for its best weekly rise since September 2001. However, the FTSE is still down 14 percent for the month and nearly 35 percent in the year to date. Mining stocks are taking a big hit today, as metal prices softened and after UBS downgraded earnings per share for the sector by 48 percent for 2009 and 43 percent for 2010. Some of the selling on the European indices appears to be a bout of profit taking heading into the weekend, after three days of the indices being in rally mode.

Over on this side of the pond in North America, the early futures are pointing to some downside in the US indices, at the open. As I type the DOW is expected to fall around 150 points. However it is a bus day on the economic calendar, so things could change dramatically by the open. At 8:30am the Employment Cost Index, Personal Income and Personal Spending numbers will be released. Followed by the Chicago PMI numbers at 9:45 and the Michigan Sentiment Revised numbers at 10am. Weaker commodity prices across the board doesn't bode well for the Canadian indices, if the trend in Europe continues.

Back in McFaulds Lake, NOT's volume continues to decline as the euphoria from the proxy battle is now behind it. However, yesterday the share price was up 9.52%, as the profit taking selling, from recent lows appears to have dried up. For today from the chart we have support at $.79 and resistance at $.99, with the 13(MA) now at $1.02 and falling. Looking at the chart the downtrend is still intact, however we are starting to see some sideways basing and hopefully the curve shows the stock has found a bottom and it starts turning up. From level 2 at the close yesterday I noticed some big bids showing up at the $.90 level, which indicates to me, they are trying to turn the stock back up, perhaps to get it back to the $1 level. The talk of NOT doing a PP shortly would make the $1 level seem like a reasonable bet. If there is truth to the rumour that a PP will be announced shortly and it is going to be done at the $1 level, we may see the stock run up to around $1.10 and build a solid base in the $1 to $1.10 range for a bit. Without some good news from an exploration hit of significance, my bet is we are about to hit a boring period for NOT's share price with declining volume, until we get a PP announcement and it is accepted by the exchange.

The one thing that could change NOT's share price and the volume of shares traded from current levels other than an exploration discovery, would be a move by NOT to the TSX. Unless there is some compelling reason why NOT can't get a listing on the TSX, I'm not sure why this hasn't been done long ago. They appear to meet all the criteria for a TSX listing. Many retail investors refuse to buy stocks listed on the TSX-v exchange, so it would make sense to me to get this new listing done ASAP. I have also heard some resource funds in the mutual fund industry, will not buy into stocks listed on the TSX-v, however I'm not sure if there is validity to that statement or not. If indeed that is fact, it would be one more strong reason to get this exchange listing done, the sooner the better. I know this was one of the gripes that Rosseau had during the proxy battle. Perhaps with a new management team in place, this will be a high priority item and we will finally get this done.

On the exploration front from NOT, there are a few exciting possibilities for news at any time. The last assays returned from the AT-12 discovery we seen some decent sized intercepts of mineralized peridotite, now we just need the assays back and some decent grades of nickel to be reported. Apparently they still haven't hit any mineralized massive sulphides at AT-12, however the hunt for the sweet spot on this discovery continues. There still is an outside chance to get some Eagle One type assays from this discovery, so perhaps with a little luck, we could get some excitement form this discovery yet. We also have heard NOT is back drilling at the Eagle One location, apparently this is still open at depth and to the south. The kinds of grades they have pulled out of this discovery would make a real splash if they can be repeated. Adding to the tonnage of this pod would certainly be welcomed news. From Prof Mungall's presentation at the AGM, if I was reading it correctly, there is still the chance, they haven't discovered the motherlode portion of this discovery. The real meat to this discovery could be sitting in a vast pool at depth. I know personally, if I hear they have hit something at depth and I hear the words mineralized massive sulphides, I will be jumping back into NOT in a big way. Perhaps round 2 from the Eagle One discovery, will make the first part of the discovery, look miniscule in comparison. From looking at the map presented by Mungall, hitting something of significance at depth at Eagle One would be the defining moment for NOT and propel it to the big leagues. If NOT could double up the tonnage with the kinds of grades from the original discovery, it would blow the lid off McFaulds Lake. The previous 52 week highs would be the floor on the share price, not the ceiling as it is currently. JMHO

I have been hearing whispers, we could be getting some visuals back from FWR at any time. Now that they are drilling for nickel instead of chrome, a hit of significance would have some real meaning. I doubt we will see much movement in FWR's share price until they do actually report something from a hit on the nickel front. FWR's 1st visuals reported they had hit some good indicator minerals, however the market is looking for something more along the line of mineralized massive sulphides. These next visuals will tell me if FWR is worth taking a chance on, or not. We already know they have the motherlode when it comes to chrome, however the market is still giving no valuation for chrome to these stocks. I see no reason to fight the market, if it doesn't like chrome then neither do I and I will avoid one trick pony stocks that only have chrome, like the plague. The only thing that is going to right this stock is a nickel discovery. Supposed Mac Watson is going to be drilling on the nickel endeavor right up to X-mas, so there is 2 months left for FWR to get it done. This is make or break time for FWR.

Other than FNC, there is not much else in McFaulds Lake that have any real break out possibilities. I suppose with so many drilling programs going on from the numerous ROF stocks there is always hope. However last summer was supposed to be the time when the ROF lite up like a christmas tree will all the expected hits from the drill programs. It was certainly a summer of disappointment in McFaulds Lake. If we don't get something of significance discovered over the fall drilling season, I think it is time to come to grips with the fact that McFaulds Lake is a dud, for all but NOT, FNC and FWR. Stocks like TME, NRN and BMK with all their promise, have failed to deliver, in fact they are all miserable disappointments, complete and utter failures. Many of the share certificates of the stocks in McFaulds Lake, are presently nothing more than wall paper. Unless me get a surprise from one of the lesser players with the drill bit and soon, it is time to bring out the fork, declare them dead and use them as toilet paper. The ring of fire for many of these lesser area plays has turned into the ring of hemroids.

Best of luck to all McFaulds Lake investors.



Al

 

[LOR]

Dear NOT Investors,

A new interview with interim co-CEO's Mr. Paul Parisotto and Mr. Joseph Hamilton is now available for your listening pleasure.

Click here to access the interview. http://www.agoracom.com/executive/NOTceo30Oct2008/player.html

 

[LOR]

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Takeover talk circles handful of Canadian juniors

Fri Oct 31, 2008 11:01am EDT



Market News


OTTAWA, Oct 31 (Reuters) - Merger and acquisition activity in Canada's mining patch will heat up again, but it is tough to predict when big miners will decide the time is right.
"The increasing valuation gap between the senior and intermediate producers and the junior explorers/developers suggests to us that M&A activity will likely heat up going into 2009," Dundee Securities said in a note to clients.
Analysts have fingered a handful of juniors that are likely takeover candidates. Here is a list of some potential targets:
* Aquiline Resources (AQI.TO: Quote, Profile, Research, Stock Buzz) - The owner of Navidad silver project in Argentina needs to raise funds to finance immediate capital needs, analysts say. "If the company can continue to move toward development, potential acquirers may take an interest in its large, world-class silver project," Dundee Securities said in a note.
* Corriente Resources (CTQ.TO: Quote, Profile, Research, Stock Buzz) - Developing the big Panantza-San Carlos copper project in Ecuador, Corriente is looking for partners. The owner of the Mirador and Mirador Norte projects, has a "good probability of being taken over," Wellington West Capital Markets said in a report.
* Candente Resource (DNT.TO: Quote, Profile, Research, Stock Buzz) - Said in late September it was looking for a joint venture partner for its Canariaco copper, gold and silver project in Peru.
* Detour Gold (DGC.TO: Quote, Profile, Research, Stock Buzz) - The past-producing Detour Lake project has a good chance of being acquired by a senior producer in the coming year, Wellington West said. Buyers may have to go through PDX Resources (PLG.TO: Quote, Profile, Research, Stock Buzz) which holds a 42 percent stake in Detour.
* South American Silver (SAC.TO: Quote, Profile, Research, Stock Buzz) - "The size and scope of the Malku Khota project makes South American Silver Corp a takeover candidate by a major with cash or cash flow," said Wellington West.
Noront Resources (NOT.V: Quote, Profile, Research, Stock Buzz) - Owns a promising nickel, copper and platinum property at its Double Eagle property in northern Ontario. Complicated by a recently settled proxy battle.
* Osisko Mining (OSK.TO: Quote, Profile, Research, Stock Buzz) - Developing the Malartic gold project in Quebec with an estimated 8.4 million ounces. (Reporting by Susan Taylor; editing by Rob Wilson)

 

[LOR]

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Monday morning thoughts from TC

Good morning. Overseas this morning on the Asia/Pacific indices Hong Kong's Hang Seng Index is up 2.69%, Singapore's Straits Times rose 4.9%, Australia's All Ordinaries gained 4.78%, while South Korea's shares rose 1.44%. The Nikkei in Japan is closed for a holiday. Asian investors appear encouraged by government efforts to help the global economy weather the financial crisis. Across the region, markets seemed to shrug of more dispiriting economic data and focus on fresh stimulus plans. The Korea Composite Stock Price rose after the government unveiled nearly $11 billion in new spending measures to protect South Korea from sliding into recession. In Australia, markets rose sharply, despite troubling evidence of slowing manufacturing and retail sales, as traders anticipated a further interest rate cut from the country's central bank on Tuesday. It doesn't appear to be a massive change in direction, more a case of a little more confidence going forward in massively oversold stocks and global organized attempts to deal with the issues. Financial stocks were sharply higher in many Asian markets. China's ICBC gained 9.6 percent in Hong Kong, top Indian lender ICICI Bank Ltd. rose 8 percent, and leading Australian investment bank Macquarie Group Ltd. surged 12.4 percent. Asian investors are reportedly keeping a close eye on U.S. reports due on manufacturing, the service sector and employment in the world's largest economy and major market for Asia's exports. October was a brutal month for Asian markets, but ended with tentative signs of recovery. Hong Kong's Hang Seng Index shed about 23 percent during the month amid worries that the global financial crisis would erode corporate profits as investors dumped shares to meet redemptions back home. The benchmark dropped as low as 11,015.84 last Monday, its worst close since May 2004, but has since bounced back. The rise in Asian markets also lifted oil prices, which advanced 72 cents to $68.53 a barrel in Asian trade on the New York Mercantile Exchange. The dollar gained 99.56 yen from 98.44 late Friday in New York, up sharply from the 13-year low of 91 yen touched Oct. 24.

In Europe on the major indices shares were up early today, tracking gains on Wall Street and in Asia, as investors hoped recent worldwide steps to stem the financial crisis and likely rate cuts in Europe this week would calm market nerves. The European Central Bank and the Bank of England are expected to lower interest rates this week, following recent rate cuts by China, India, Japan and the United States. In England it is being reported three million homeowners, or more than a fifth of households, could end up in the trap of negative equity, with mortgage debts larger than the value of their property, as house prices continue to plunge. So investors are extremely nervous whether they are going to just get a half % rate cut by the Bank of England, or if they are going to see some inspiration by cutting it by 1% to give borrowers some impetus. The European indices are flat with a positive bias, at the time I am typing, in mid-morning trade, as losses among automobile and banking stocks are offsetting gains in the energy and utilities sectors. European investors for this week, will likely keep a close eye on the U.S. presidential election on Tuesday and the U.S. non-farm payrolls data for October on Friday.

On this side of the pond in North America, the early futures numbers are pointing to a positive open for the US indices. On the economic calendar for today we have the Construction Spending numbers for September and the ISM Index numbers for October released at 10am. Of course this weeks big news in the US, is the presidential election on Tuesday. It is widely reported that the markets respond well to a Democratic presidential win and all signs are showing Barack Obama poised for a landslide win. Hopefully this plays out for a rally in the worlds equity markets after October's bloodbath. If the rise in commodity prices holds up for today, it should bode well for the Canadian indices.

Back in McFaulds Lake, NOT had a flat day on Friday, holding the line at $.92, however the increased volume was a welcomed sign. On NOT's chart for today support is at $.75 with resistance at $1.13 For the 1st time in over a year NOT's 13(MA) broke under the $1 mark and now sits at $.995 and slowly dropping. This shows the downtrend is still intact, with no signs of turning around yet. There are signs that NOT is building a solid base in the $.80 to $1 range, but until that 13(MA) curve can turn around and start trending up, there is no hurry to jump back into this stock. For those investors willing to take on the risk, buying shares at this level looks fairly safe, the only concern would be the rumours of NOT doing a PP shortly. With money so hard to come by for junior mining stocks we honestly have no idea at what price the PP would come at. This is where it gets risky with the new management team in place, do they do a PP at lower prices to line the pockets of their buddies on Bay St, or do they take the share price higher to limit the dilution factor. If they don't raise the funds with the same group that took down the last PP, which are now those in power and have to go to the Bay St boys for financing, those wolves would want the PP done as cheaply as possible and could drive the share price down to recent lows to achieve their goals. My bet would be they do a PP around the $1 level, but until announced, there is that risk. The safe play would be to wait until the PP is announced, before taking a position. You may up spending a little more to get in, but limiting the risk in these markets is probably the prudent play. If investors knew for sure there is not going to be a PP for a couple of months down the road, then NOT looks very cheap at current share price for buying in.

Best of luck to all McFaulds Lake investors.




Al

 

[LOR]

Tuesday morning thoughts from TC

Good morning. Overseas on the major Asian indices trading was very thin today as investors play wait and see concerning the US elections. Japan's Nikkei index rose 6.27%, playing catch-up after a holiday, but other stock gains were tame after reports pointed to a shrivelling U.S. economy ahead of the Presidential election. The elimination of uncertainty surrounding the election could provide a short term boost to the U.S. dollar and equities, though the longer term impact on investor sentiment, especially with regard to rescue policies shaped only in the last several weeks, remains unclear. Depending on the actual results, the U.S. election may provide some support to markets globally as it may be seen as the promise of more fiscal stimulus, particularly if Obama wins the election. Meanwhile, Australia's central bank cut its cash rate by a bigger than expected 0.75%, weighing on the Australian dollar. Australia's index finished hardly changed, cutting losses after the Reserve Bank of Australia's deep cut gave a boost to bank and retailer shares. Asia/Pacific stocks traded outside Japan slipped 0.8 percent, according to an MSCI index, snapping a five-day winning streak. The index has retraced a third of the decline that happened in the wake of Lehman Brothers' collapse in mid-September, and was just shy of a 38.2 percent rebound, a key technical obstacle. South Korea's Seoul Composite rose 2.15%, up for a second day after the government unveiled an additional $11 billion in tax cuts and other measures to boost the economy. Synchronised rate cutting by central banks around the world as well as emergency government spending packages, worth some $4 trillion have brought back investors from pushing markets down an abyss. However, some analysts say it may be premature to dive back into risky assets.

In Europe on the major indices stocks are ticking higher, most are up around 2% in mid-morning trade, heading for a sixth straight day of gains as banks and oil shares are the market leaders. The big news of the day is the U.S. presidential election and a clear mandate either way is the important thing for equity markets. There is the implicit notion that things are not right anyway, and investors want someone with the energy to change things, including the markets. The European Central Bank and the Bank of England will probably both cut rates after they meet on Thursday, as policymakers race to keep their economies from tumbling into deep recessions. Investors are clearly having a pre-election rally in Europe, lets just hope the exuberance spills over to the North American markets.

On this side of the pond, in North America, the futures are pointing to a sharply higher open on Wall St., as Democrat Barack Obama and Republican John McCain face the verdict of U.S. voters. Yesterday U.S. stocks ended little changed, as investors picked up bargains on signs of further easing in the credit markets, but were unwilling to place big bets before the presidential election. The talk in Washington is to expect another stimulus package somewhere in the neighbourhood of $150 billion if Obama wins todays election. The expectations is for this package to be skewed towards infrastructure improvements, which would certainly help on the jobs front in America. This sort of stimulus would be very beneficial to construction and material stocks, so these are the types of stocks that should do well today, if buying on the US side. Not much on the economic calendar for today, we already received the Auto and Truck sales numbers and they certainly weren't good. At 10am the Factory Orders numbers will be released, no real market moving numbers here, as they are expected to be very weak, so they are already priced into the market. So it appears to be a day of investors placing their bets on who is going to win todays Presidential election and from all early indications Obama is going to win in a landslide. This clearly seems to be the bet today from investors, but todays session could be volatile. "If" Obama wins a clear mandate and the Democrats have a strong showing in Senate elections, I expect the rally to have legs and we could be in for a good bull run to close out 2008 in the US markets. Hopefully the Canadian indices get pulled along for the ride. It certainly looks good for today as the futures markets are pointing to a huge rally at least at the open.

Back in McFaulds Lake, NOT had another so/so day trading in a tight range on average volume. For today NOT has support at $.87 and resistance at $1.03, with it's 13(MA) now at $.97 and still falling. There is just no need to get into this stock as long as it is trading below it's 13(MA), especially when the 13(MA) keeps falling. All this should tell investors is they are on the wrong side of the trade, unless of course they are short. The one saving grace for NOT right now is it is consolidating in a sideways pattern that is grinding down into a wedge. The tighter the wedge becomes, the more violent the explosion will be, once it breaks out of it's range, the problem of course is knowing which way it is going to break. With all the numerous things currently on NOT's plate the obvious expectation is for NOT to break to the upside, however with a rumoured PP forecasted, there is a risk of a break to the downside. The one thing NOT investors should be concerned with is how the TSX-v exchange was up sharply yesterday, yet NOT was only up $.01 on average volume. When a stock like NOT doesn't move up, when a badly beaten down index like the TSX-v exchange has a rally day, one has to wonder what will happen if the exchange takes another big downward hit. NOT should be one of the index leaders, not a middle of the pack laggard.

FWR caused a little investor excitement yesterday, when it appeared it was going to break out. However the mini rally was on extremely light volume and by the close it was only up $.005 for the day, hardly worth getting excited over. What yesterday does tell investors is the selling is drying up and any hint of good news should move the stock up sharply. From the chart of FWR for today it is showing support at $.175 and resistance at $.21, with the 13(MA) at $.18. At least FWR has had a clear break atop it's 13(MA) and that is now support for the stock. The chart indicators are showing signs that a breakout is possible with this stock shortly. For those wanting to take a chance on this stock, buying at current share price levels with a tight stop just below the 13(MA) looks like a good play at this time. A break over the resistance point at $.21 and FWR should have clear sailing until the $.275 level, which is a fib point where it should run into some selling pressure. It will take some good news to break atop $.275, but any break of this resistance point and it should be clear sailing to the $.35 level. However once it hits the $.35 level it would run into some severe selling pressure due to a previous PP. A lot of the paper should be cleaned up at from the PP done at $.30, from FWR's last run, however the 8 million shares from the $.35 PP still has to be dealt with. All in all, FWR appears to have the best looking chart of the McFaulds Lake stocks currently and would be the one I would bet on, if playing any of these stocks at the present time. This is clearly a chart that appears to be expecting news from the stock very soon. A word of caution to anyone entering this stock, remember to put in at least a mental stop loss at $.17 and if the share price hits that point, get out. Money management in the current market environment is a necessity if you want to survive as a market player. Leave the bagholding to the permabulls, the secret is to survive and live to play another day. JMHO

FNC had news once again yesterday and as par usual with Peter Smith it was rather confusing to say the least. It appears FNC is finding massive sulphide mineralization but in very narrow bands, so far nothing of economic quantities. The real news from yesterday release was they have now moved on to the C-5 anomoly. This is the location they should of drilled right off the start on their current drill program, however I think Peter Smith had visions of hitting Eagle One type of mineralization at C-1 and he got his priorities a tad mixed up. C-1 could very well play out in the future and I see they have plans to return to this location after C-5 is tested. C-5 is the monster anomoly and very well could be the octopus FNC has been searching for. At the very least this anomoly offers some hope for FNC investors and if the market conditions improve, we could see a speculative run in FNC's share price now they are drilling at this location. Taking a quick look at FNC's chart, that huge gap up to the $1.15 price level looks very tempting, if C-5 hits anything of significance. For those that like to play high risk situations, buying a few shares of FNC, if you can pick them up cheap enough and taking a chance that the gap gets filled on the chart, could make someone some serious money. Anyone taking a shot on FNC should understand that is nothing more than a lottery ticket and as such, personally I wouldn't bet more than I was prepared to lose. JMHO

Currently we have 3 plays in McFaulds Lake that appear to be worth playing, that is FNC, FWR and NOT. These appear to be the ones with the most upside potential currently. However investors should understand that the world's economies are in trouble and we appear to have entered into a time that a deep recession is on our doorsteps, playing junior mining stocks, is probably the highest of risks in this kind of environment. Those that find themselves in a profitable position on any of these McFaulds Lake stocks would be well advised to take profits off the table if the situation affords itself. Don't let a profitable situation turn into a losing one is my best advice. The November to end of December time frame is often one of the best times to make money in the markets and I think this year will probably be no different. However don't get careless, I think come early January the markets will have the next shoe drop on the financial crisis that is devastating the worlds economies and the markets will most likely retest recent lows. Of course this is only my opinion, so take it for what it is worth, not much. The TSX-v exchange may very well participate in the rally I am expecting over the next two months, but come the new year, being completely out of all TSX-v stocks is the way I am going to play this expected rally. JMHO

Best of luck to all McFaulds Lake investors.



Al

 

[LOR]

Wednesday morning thoughts from TC

Good morning. In Asia the major indices were up sharply overnight following the strong showings of the US indices yesterday. The Hang Seng was up 3.17% and the Nikkei was up 4.46%. Asian shares hit a three week high and the dollar extended gains as Barack Obama became the next U.S. president, ending uncertainty about who will lead the world's largest economy in the midst of great financial peril. But Asian stocks pared gains, with analysts saying a victory for Obama had been largely priced in after recent rises and concerns about the health of the global economy are still paramount. US treasuries fell as investors became bolder in taking risk, but oil succumbed to profit taking after signs of global production cuts had sent crude prices up 10 percent on Tuesday. Gold also fell more than 1 percent on the firmer US dollar. Obama's win is arguably likely to prove more positive for foreign markets given the perception that he will be stronger in terms of dealing with U.S. economic problems, is seen more favourably by foreigners generally, and is less likely to follow the policies of President Bush. The US dollar advanced in Asia, following Obama's election, recovering some of the prior day's losses that saw the currency suffer its biggest one day slide in 13 years as investors went searching for higher yielding currencies. Despite unprecedented measures to rescue banks across the world, aggressive rate cuts by central banks, and the improvements in credit markets that have in the last week given global markets a respite from a thrashing, caution will now creep into investors mindsets. The bottom line is economic fundamentals in the U.S. are deteriorating faster than the market can keep up with. And there is very little an Obama administration can do to shield Asia from the effects of this downturn. The market was putting in an Obama bounce yesterday, and we had a continuation of that rally in Asia overnight. However this rally most likely will be short lived, as it has created an opportunity for Asian investors to sell, in a profit taking situation. As much as the recent sell off in equities was overdone on the downside, it appears this weeks rally has been overdone to the upside.

In Europe the major indices have opened to the downside, snapping a six day rising streak, as the focus returned to the slowdown in the global economy after investors digested Barack Obama's U.S election victory. Energy stocks are todays big losers as crude oil prices fell overnight to around $68. Obama is seen as anti big oil so the market is seeing reason to take profit in oil majors. European analysts are saying construction and infrastructure stocks are potential gainers from an Obama win, with European commercial banks set to benefit from opportunities to acquire U.S regional banks. Other possible gainers include healthcare equipment and insurance firms, because a strong US dollar would be good for European exporters. Commodity stocks are todays biggest losers in the European equity markets and stocks across the board are suffering a bit of profit taking, after the huge gains since the market bottomed out last week. Obama mania is now sell the news, as investors do the reality check, that the worlds economies still have a deep global recession to deal with.

On this side of the pond in North America, the early futures numbers are pointing to a down day at least for the open of todays trading session. It appears we are looking at some profit taking, after the recent gains in the equity markets. Some key numbers the indices need to hold and stay above to keep our recent uptrend intact are, TSX 9550, DOW 8900, S&P 925 and the Nasdaq 1670. As long as those above numbers are not breached, there is no reason to believe our recent uptrend won't continue. It just appears to me, the markets need a breather after some spectacular % gains over the last week. Nothing goes straight up and a test of key support levels is healthy for the markets in general. We read article after article that recent gains were nothing more than a bear market rally, however I am a believer in the bullish camp, at least until around the Christmas time period. Early in the new year things should start to unravel and we most likely will get a test of recent lows. On the economic calendar for today we get the ADP Employment numbers at 8:15am followed by the ISM Services numbers at 10am. At 10:35 we get the biggie, the Crude Inventories numbers, which should set the trend for oil prices for the remainder of this week. Weaker commodity prices if they continue, don't bode well for the Canadian indices for today.

Back in McFaulds Lake, NOT put in a very disappointing day yesterday, as it was up only $.02 on low volume on a rally day in the TSX-v exchange. NOT should be a market leader in the TSX-v on rally days, not a laggard, if it is going to rebound from its depressed share price. On the chart for NOT today it has support at $.86 and resistance at $1.02, with the 13(MA) now at the $.95 level and still falling. Yesterday's close was right on the 13(MA) and it needs to open at this level and stay above it today, if we are ever going to put this downtrend behind us. The volume drop off on NOT is very concerning and if it continues a slow bleed to test recent lows is certainly not out of the question. It is plain and simple NOT needs news and it needs it now.

I'm not sure what the hold up is for the TSX listing but this should be a top priority for the new management team. Also we need some news from the drilling front. It is hard to understand how NOT, with 3 or 4 drill rigs, supposedly going at full speed ahead doesn't have more assay results. Are they missing that bad on their drilling programs that they don't send any core samples into the labs? This is not looking good and if it continues one must assume they are pulling up blanks on every phase of their drilling programs. For a stock with this high of a burn rate on their cash resources to have nothing to show for it, should be a major concern for anyone holding this stock currently. Personally I see no reason to own this stock presently. Having money tied up in a laggard stock like NOT when other stocks are seeing sizeable percentage gains makes zero sense to me. The other things that concerns me is the talk of another PP, which at these prices will be a major dilution factor for those presently owning the stock. The Eagle One deposit is obviously a high grade pod of mineralization but with the recent slide in base metal prices, even it is losing its lustre. They talk about mining this deposit, but the infrastructure costs would be so high, the present economics tells me this avenue isn't even a viable option at this time. We hear lots of talk about how valuable the chrome discoveries are but we certainly see no evidence of a major showing any interest whatsoever. In fact the plain and simple truth is the market is giving NOT no valuation for their chrome discovery. Unless something changes and changes fast, a test of recent lows at $.60 seems probable. I hate to play devils advocate with NOT, because I think the share price is extremely undervalued for what they have proven in the ground. However, unless they can add some tonnage to their Eagle One discovery or someone else in McFaulds Lake comes up with a discovery of significance, this stock appears to be done like dinner for the foreseeable future. Market conditions for junior resource stocks could stay at these depressed levels for years down the road as the worlds economies are facing a severe recession. Another major concern for shareholders right now, is what would happen if a major comes along and offers a 50% premium to NOT's current share price? I'm not too sure investors who bought in at $5 to $7 would be overly pleased with a $1.40 take over offer, but it is certainly within the realm of possibilities. To be brutally honest I am very concerned about this stock right now and I certainly see no reason to own this stock unless they come up with a new discovery of significance and soon. JMHO

I won't go rambling on about FNC and FWR today after expressing my bitter disappointment with NOT. I do feel this pair of stocks does offer a slight ray of hope to current investors. However, yesterday was an excellent day for TSX-v stocks and the volume of shares traded was very disappointing on both of these stocks to say the least. Lets be honest here, investors could care less about these McFaulds Lake stocks at this time. Until investor sentiment turns, owning shares of any stocks in McFaulds Lake simply doesn't appear to be worth the effort currently. My best advice is take your money and put it into something that other investors are showing some interest in. McFaulds Lake is obviously out of favour with investors at this time. Sorry, but we have to face up to the reality of the situation. I certainly hope this changes, because nothing would make me happier than to see the McFaulds Lake stocks explode, I don't want to see investors lose money, now, or have I ever. But the sad reality is those currently invested in McFaulds Lake stocks could be sitting on dead money for a long, long time. JMHO

Best of luck to all McFaulds Lake investors.



Al

 

[LOR]

Thursday morning thoughts from TC

Good morning. Overseas in Asia on the major indices are down sharply this morning following the losses on Wall St yesterday. The Hang Seng is down 7.08% and the Nikkei is down 6.53% as more evidence that the U.S. economy is shrinking made investors brace for a potentially deep and prolonged global recession. After toying for several days with raising their threshold for risk by buying beaten down shares, investors were overwhelmed by fears that far reaching consequences from such a sharp slowdown in developed economies were still unfolding. Euphoria about a fresh change in U.S. political leadership after the election of Barack Obama was cruelly short lived as the reality set in of deteriorating market and economic conditions. With the U.S. election over, the eyes of investors are turning to the economy, with a sense that nothing quick can be done to stop the global economic slide. The euro and sterling fell against the dollar ahead of expected rate cuts in Britain and Europe, while the yen firmed against higher yielding currencies as fear based trades ruled. The Australian dollar, one of the more higher yielding currencies among developed economies, declined against the dollar and the yen on fears of a sharp global downturn and price declines in commodities it produces such as gold, crude oil and base metals.

In Europe today on the major indices they are down sharply in early trading, tracking a sharp decline in US and Asian stocks as concern about the economy remained firmly centre stage after Barack Obama's election victory. Bigger than expected job losses in the United States, a sharp contraction in the world services sector, steep house price declines and a manufacturing retreat in Britain, all underscored the global economic gloom. Investors are awaiting interest rate verdicts from the European Central Bank and the Bank of England later in the day. Both central banks are widely expected to cut rates to stimulate growth. Analyists are saying the market has already priced in a 50 basis point rate cut by the Bank of England. The fear is the market may be disappointed if it comes in half percent because increasingly over the last few days there have been calls on something more aggressive. After the decisive U.S. presidential result, which helped remove political uncertainty, we are back to the grim reality of economic data showing recessionary conditions, and lower earnings guidance. The counterbalance is interest rate cuts. We're no longer in a situation where big cuts cause panic. Led by heavyweight commodity stocks and banks, the FTSE in England is down over 4% in early trade, after losing 2.3 percent on Wednesday to snap a six session winning streak. The index is still down nearly 32 percent for the year. Energy stocks are falling along with softer crude prices, which are trading below $65 a barrel. Elsewhere in the commodity sector, miners are under selling pressure, as lower metal prices and weaker earning from sector heavyweights continue on recession fears.

On this side of the pond in North America, the early futures numbers are pointing to a lower open across the board in the US indices. On the economic calendar for today we get the Productivity Preliminary and the Initial Jobless Claims numbers at 8:30am. Investor sentiment is expected to be down after Cisco Systems said after the close of regular trading that fallout from the United
States' economic problems had now spread to key markets abroad and its revenue could fall as much as 10 percent in the current quarter. Weaker commodity prices don't bode well for the Canadian indices today, but commodity prices could change before the open, once the European Central Bank and the Bank of England disclose their interest rate decisions this morning.

Back in McFaulds Lake as expected the volume on NOT was down sharply yesterday and the share price took the brunt of it, falling another 8.42%. On the chart for today NOT has support at $.815 and resistance at $.975 with the 50(MA) now down to $.925 and falling. Once again as long as NOT continues to trade under it's 13(MA) there is no reason to be invested or take a further position in this stock. Those that do, are playing the falling knife game and the cuts can be painful as long as this downtrend continues. As evidenced by the falling volume investors are finally coming to grips with the situation that all is not well in NOT'land. One must wonder if news from the drilling front continues to be avoided, at what point will NOT test recent lows of $.60 set in October's market crash. For all the whining Rosseau did during the proxy battle with Nemis, they certainly have done very little for the share price of NOT since taking over the reigns of power. I guess it is always easier to drive from the back seat, but once you are handed the steering wheel, reality sets in. Your investors are from Missouri, Rosseau and friends, time to show me. All these supposed friends Rosseau has on Bay St have certainly done very little to stabilize the share price of NOT, or give it some new found direction.

Looking at the chart of FWR this morning one can't help but notice how the stock appears to be forming a right shoulder as it bases in the $.19 to $.20 range. It appears an inverse head and shoulder pattern is developing on the chart. A few more days of basing in this range and investors may be advised to watch for a volume spike and a breakout of the $.21 area. This would confirm a signal for a sharp move higher and the breakout could have some legs. It's definitely not there yet, but a just a heads up to those that watch this stock closely. On the flip side, if FWR where to break below the $.175 area, investors may be advised to quickly get out and watch for a test of recent lows at $.145, there is a strong possibility a break lower could see this stock test the $.12 area. Many are caught up in the euphoria that FWR has strong fundamentals since they have hit major chrome intersections on their property, but keeping a close watch on the technical side may just be as important. At this stage of the breakdown in the TSX-v index, if things get much worse on the global economic situation, lower lows for many of these stocks is certainly in the realm of possibilities.

Many investors in the McFaulds Lake stocks have suffered from some terrible % losses in many of these stocks and to be brutally honest with you, without a major discovery of significance, I don't see the situation changing any time soon. Some investors are slowly coming to this realization and are asking what they can do to get out of the mess they find themselves in. The best advice I can give you is to join a site like TradingChief. On a daily basis in this sites chat rooms, we try and help investors reverse their individual situations and get them back on track to recover some of their losses. It isn't easy, but with some hard work, you can get out of your mess. The help is available but it is up to you to take the first step and do something about your situation. Burying your head in the sand and hoping your situation will right itself, is going to do nothing but cause you further pain and misery. Your first step is getting over the denial stage and the second step is to step up to the plate and fix what is broken. The old adage you can lead a horse to water but you can't make him drink, certainly rings true, in the bear market, we as investors find ourselves in. Once again the help is out there, it is up to you grab the brass ring and take it. JMHO

Best of luck to all McFaulds Lake investors.





Al

 

[LOR]

Letter from Jennifer Nemis
Posted by: The Kid on November 06, 2008 03:28PM

Hello Fellow Noront Shareholders,

I have wanted to post a letter of thanks, but needed some time to collect my thoughts. It has been an emotional week.

I did not post here, for obvious reasons, but I have followed this board and I have been constantly amazed at the support, intelligence and dedication of all of the shareholders on this forum.

I would first like to take this opportunity to thank each and every one of you, for the enormous effort you all put in to win this proxy battle...and we DID win! I have never seen such coming together of the retail shareholder and I?m proud to have witnessed such efforts. Efforts that will inevitably, change the junior market landscape. You have all changed history, voting again will never be the same. The institutions have been slapped with a solid dose of retail reality. The assumption that retail won?t vote & their opinions don?t matter; I believe will be a thing of the past.

Thank you to Agoracom for giving Noront shareholders a balanced place to communicate and for your unwavering support of this fantastic company & its management. You have been instrumental in giving the little guy a voice, and a mighty loud one at that!! This was an unprecedented proxy vote. Thanks to ALL of you...YOU made it happen. Even though it feels like a huge loss... the deal that management made was indeed in the best interest of all of us. The fundamentals of this fantastic company have not changed. I believe that this IS, and WILL be, an incredible, history making find.

When I was a little girl, my dad would come home from the office carrying chunks of rock and core samples. My brother and I would dig through his pockets to see all of the shiny, rugged rocks.

On family trips to the camp... my brother and I would come across all kinds of different kinds of rocks and trying to impress our dad we would bring these little pieces of rock to him for approval.

Most of the time dad would reply.... that is ?Leave ?er right?..... ?Leave er right? We would ask..... Yes kiddo..... Leave ?er right there!!! Fool?s gold! It was then that we realized that this mining for gold thing was a lot harder that it looks. Do you know how much ?leave er right? is around???!! Ha

My father grew up in Sudbury Ontario. His father worked very hard to build a life for his family and started Noront Steel. Grandpa Jim was an inventor, a visionary and a very hard working man. He designed the ?snow bug? one of the very first snowmobiles in Canada. Grandpa instilled, in all of his children the importance of a solid, honest work ethic. If you work hard, play fair and honest, you can achieve anything you set your mind to.

My core belief and understanding of these principals have, to say the least, been shaken by this nasty proxy war. The tactics used by the hedge funds undermined my belief in working hard & honest to achieve your goals. Yes, I?m sad and angry that my dad didn?t get to see this through...his way. But I know that the decisions made, were made in all of our best interests. Making that deal preserved shareholder value. It preserved the progress and the relationships that Noront has been working so hard on for the last 5 years. A deal that was necessary in these uncertain economic times. This is the Noront that I know.

Dad, along with many of the ?old school? boys in the mining industry got into this business for the excitement of the ?find?. The spirit of mining, the excitement of the discovery, staking claims and taking lots of risks. Gold rush fever is what they called it! These guys believe that a discovery found is to be enjoyed by ALL, and not just a select few.

Dad passed along this message to us. Throughout the development of Noront Resources, a common theme played over and over again in our home. That theme was responsibility towards the shareholder and their investments. My dad has always cared tremendously about his shareholders. After all he would say... they are instrumental in all of the successes Noront achieves. Without them, there would be no great discoveries.

My brother and I are so proud of what dad has accomplished his integrity and honesty, his solid work ethic and his perseverance. He is and will always be our hero.

Dad is humbled and overwhelmed by the support of the many shareholders on this board, some of which have been with him for over 30 years.

This is a testament to his unwavering dedication to all of you; shareholders who he feels made this happen. Without them, there would have been no successes and no legacy to carry on.

No one could have predicted the economic climate that we are facing today and we may have to wait just a little longer to fully realize the potential of this find. I know that I?m hanging on...hanging on because I believe in what we have, hanging on because I believe in the power of the shareholders , hanging on because I have to believe that this new management wants to see success just as badly as we do, and hanging on because I believe in the tremendous efforts by management to bring this little junior company so far along, in such a short time.

Keep your eyes out... you haven?t seen the last of Dick Nemis. The excitement of the find is too powerful, and making people?s lives better, is the reward he gets out of all of this. He will be back!

Thanks to all of you for your support.

Keep the faith!

Jennifer Nemis

 

[LOR]

Friday morning thoughts from TC

Good morning. In Asia overnight the major indices were mixed to close out the week. The Hang Seng in China was up 3.29% and Japan's Nikkei was down 3.55%. Oil prices briefly fell below $60 in the face of a rapidly slowing global economy, then recovered on the hopes for more policy action from the regions Central Banks. Currently no industry is considered a safe bet yet and investors have found few consistent havens except for the yen and some government bonds, with the financial crisis expected to see the world's developed economies headed for the first full year contraction since World War Two. The Bank of Korea cut interest rates for the third time in a month, following half point cuts on Thursday from the European Central Bank and the Swiss National Bank. These rate cuts are sending a signal on how committed the central banks are in reviving the global economy and at some point they should inspire confidence among investors. The yen continued to follow around volatility in global equity markets this year. The yen has benefitted from a combination of Japanese investors closing out overseas trades and bringing money back home as well as global investors finding comfort in Japan's external surplus. The feverish reduction of risk in investors' portfolios and on bank balance sheets, a process broadly described as deleveraging, has been the main factor driving down global equities, emerging market asset prices and commodities. However, with borrowing rates between banks falling, inflation rates mostly coming down and liquidity conditions among emerging markets improving, for the first time since the credit crunch hit, there is a chance that the authorities are getting ahead of events.

In Europe the major indices are currently all trading in positive territory in early trade. The rescue packages of governments for the banking system and global rate cuts by central banks appear to easing investors fears. Stocks are rebounding after a sharp drop on Thursday as commodities stocks reflected a pick-up in crude oil and metals prices. There is no fundamental reason for todays rally other than maybe investors are starting to think about monetary policy in a more positive sense and commodity prices are giving some support. An easing in the U.S. dollar against a basket of major currencies is helping to push up the price of copper and aluminium as well as gold and platinum. Energy stocks are also climbing, as oil rose back to over $62 a barrel, bouncing back from a session low of $59.97, its lowest since March 22, 2007. Positive news also came from Germany, where data showed the first monthly increase in exports in three months.

On this side of the pond in North America the early futures are pointing to a higher open for the US indices this morning. However, it is is going to be a busy day on the economic calendar and the Nonfarm Payrolls numbers at 8:30am could be market moving numbers. It is widely expected to show the US lost 200,000 jobs in October, anything over that number and the futures most likely will tank. Of course on the flip side anything better may be met with some euphoria by investors and we could be in for a huge rally day in the North American indices. Also on the economic calendar for today there is the Average Workweek, Hourly Earnings and the Unemployment Rate numbers released at 8:30am. At 10am, the Pending Home Sales and Wholesale Inventories numbers are released, followed by the Consumer Credit numbers at 3pm. U.S. President-elect Barack Obama will hold his first news conference since his victory earlier this week, and some in the market were bracing for hints at policy direction to stem the financial crisis. Yesterday investors were worried about the US economy, but today they are looking forward to seeing if Obama will announce something that will help the market. For the Canadian indices for today, it's not much of a secret, it all depends on commodity prices. If they head up, as I expect for today, the Canadian indices should do well, to close out the week.

I was reading the various boards on this site and I couldn't help but notice how bearish the sentiment is by many of our members of the site. To me, this is often a good sign that the markets are about to turn around and head up. In fact I believe we are going to have a market rally from now to the end of 2008. Of course it won't be straight up, there will numerous ups and downs, but I believe the general market trend will be rally and I will not be surprised to see the US indices finish very strong to close out 2008. Much higher than from we currently sit is what I believe. The reason I think that is because of the election of Barack Obama. The new President elect will be having his first news conference today and we should be hearing about his road map for the future and how he plans to deal with the economic mess he inherited from the previous administration. The stock markets are often not based on reality, investor sentiment and confidence, is what moves markets. I think Barack Obama exudes confidence and investors will respond to his plans for the future. At the very least the man offers a ray of hope. Once again these are only my opinions, take them for what they are worth...not much. JMHO

Back in McFaulds Lake, as expected, NOT had a terrible day, down over 10%, as the lack of news has the share price doing the bleed. There is just no compelling reason to own NOT shares right now. On the chart for today, NOT has support at $.71 with resistance at $.91 and the 13(MA) is at $.89 and still falling. There is just not one thing on the chart of NOT right now that could possibly be construed as being bullish. Without some sort of news, or the current management team finding some fund to take a position in NOT, I fear the stock is heading down to test it's 52 week lows. Any break below the $.60 level and my fear would be the $.60 level would become resistance, instead of support. Perhaps management is talking to some funds to take a position at these levels to shore up the falling share price, on that front only time will tell. Other than assay news from one of their current drilling programs, it is hard to see what the catalyst would be, to get this stock turned around. I honestly believe the share price is severely undervalued currently, but it matters not what I believe, it's all about what the market believes. For those that are trapped in NOT at current prices I certainly would not be adding to my position at this time, the prudent play would be to wait until the share price turns.

Many investors that currently own a basket of the McFaulds Lake stocks are sitting on some severe losses. Some are asking how they can get out of their current situation and the bad news is, unless you are prepared to sell off some of your stocks at a loss and become a trader in stocks that are moving, I really see no way out. What I would do if I owned a basket of these stocks is sell off the majority of them. Then do your DD and place your money on probably the two bests stocks you think that are in McFaulds right now. I would pick the two stocks that you think have the best opportunity to bounce back in the near future. If it was me, I would choose NOT and FWR, but that choice has to be yours and your choices could be totally different than mine. I would also give FNC a close look as it could be the dark horse in McFaulds Lake, however it is a much higher risk play than NOT or FWR.

Best of luck to all McFaulds Lake investors.

ps...the current bickering on the board really serves no relevant purpose. Your time spent worrying how to get out of your current mess, if you own these McFaulds Lake stocks, would be time better spent. Forget about Dick Nemis, he is old news, start worrying about your own financial well being. Plan your trades and trade your plan. JMHO




Al

 

[LOR]

Monday morning thoughts from TC

Good morning. Overnight on the major Asian indices stocks are in rally mode, after China unveiled a nearly $600 billion economic stimulus plan, one of many steps countries are taking to limit the economic fallout from the financial crisis. The Hang Seng in China is up 3.52% and the Nikkei in Japan is up 5.81%. The Yen and the $US are down, as a result, commodity prices are up sharply across the board, after China's announcement and as financial officials from the Group of 20 economic powers, which include major developing countries, ironed out ways to stimulate growth at a weekend meeting. Asian economists are saying, interest rate cuts, bigger government spending globally and a likely recovery in corporate investments next year, should sow the seeds for an economic rebound. The damage inflicted by the worst financial crisis since the Great Depression was highlighted by data on Friday showing the U.S. jobless rate hitting a 14-year high and Japanese data today showing machinery orders suffered the biggest quarterly fall in a decade. The All Ordinaries in Australia is the one index bucking the uptrend in the Asia/Pacific markets, as it was down 1.13% today, after the Reserve Bank of Australia lowered its economic growth forecasts for the next two years. The China stimulus package has had a stabilizing effect short term as evidenced by the sharp rise in commodity prices today. However, I doubt the rally will last more than a couple of days. At some point investors will wake up and ask themselves, why did China need to take such drastic action? This was an economy that was forecast to have 9% growth this year, something smells quite not right in China. JMHO

In Europe, the major indices are also up sharply this morning, as the economic stimulus package from China has brightened a gloomy demand outlook and is giving a boost to energy and mining stocks. The markets are reacting to lower interest rates and world wide stimulus packages, with inflation no where in sight. Energy stocks are getting a big boost today in England, lifted by firmer oil prices and Saudi Arabia's pledge to cut supply in December by 5 percent. British factory costs fell by a record 5.6% in October on falling oil prices. The figures are likely to boost expectations that headline inflation could fall from its current 5.2% in the coming months to below the Bank of England's 2% target. In turn these declining inflation targets could see interest rates in Britain falling to 1.5% in 2009. It has not come as a surprise to see wholesale prices starting to decline. If US interest rates can be justified at 1% then England's interest rate has some way to fall yet. With the global economies still in a mess, from the made on Wall St financial crisis, I would expect this rally to be short lived and last for a couple of days at best. With so many doom and gloom scenario's on the horizon, this appears to be just a bear market rally, the weak fundamentals for the worlds economies obviously haven't changed over the weekend. Once again just my honest opinion.

On this side of the pond in North America there is nothing on the economic calendar for today. The futures are up sharply as I type for the US indices, at least for the open. It appears we are in rally mode for today and probably tomorrow. The reason I say that is because there is nothing on the economic calendar until Thursday, so we should be able to avoid bad news until at least then. However by about Wednesday, investors should be getting edgy, as the Initial Jobless Claims are released on Thursday before the market opens and by all indications they will be ugly. The weaker US dollar is causing a rally in commodity prices overseas, which should bode well for the Canadian indices for today. As I type here this morning the prices of oil, gold and base metals are up sharply, so it should be a good day, for the TSX-v stocks, to join the expected rally in the TSX.

Back in McFaulds Lake it was another blah day for NOT on Friday, with declining volume the stock closed flat at $.78 for the day. With a low for the day at $.77 and a high at $.82 we can see the stock is stuck in a tight trading range as investor interest wanes. For today NOT has support at $.74 and resistance at $.84, with the 13(MA) now at $.87 and falling. There is nothing on NOT's chart that would give any indications the stock is going to turn around any time soon, however NOT does appear to be oversold. This is a stock badly in need of some good news from the drilling front, or a surprise listing on the TSX announcement. This week should be a tell tale sign for NOT as base metal prices appear to be in rally mode, so we should see some strength in the junior mining sector. If NOT fails to rally with the rest of the base metal stocks, I fear for the share price long term. If NOT is going to turn this long downtrend around it should be this week. JMHO

Looking at the chart for FWR today, the first thing that pops out at me is the inverse head and shoulder pattern that started showing up last week on the chart. I am taking this as an early clue, that FWR's share price is on the verge of breaking out. The only thing that concerns me is FWR is currently taking a 3 week break from drilling as they do a follow up gravity survey, over the Black Thor chromite zone as well as the F2 nickel-copper occurrence. However, we may get some assay results to give FWR's share price the expected pop. On the chart for today FWR has support at $.165 and resistance at $.205, with the 13(MA) at $.18, which FWR is currently trading above. This important MA should be solid support, if as expected the share price is on the verge of aspiring for much higher prices. For those trying to time an entry point for a breakout, if by chance it should happen, a buy at $.225 just over the important Fib point on the chart, is where I would buy into this stock. I would rather wait for confirmation of the breakout and miss a couple cents of gains, than be too early and end up sitting on dead money. If FWR does break out, it would meet resistance at the $.275 level another Fib point, but if it breaks atop that level a run to around the $.35 level is certainly possible. At $.35 I would expect the share price to run out of steam because of the previous PP at that level. If the breakout occurred on assay news and it picked up enough volume to break atop the $.35 level, you then could start thinking about new 52 week highs for the stock. There are a lot of "IF's" in the above scenario, but certainly within the realm of possibilities. One thing I would advise shareholders is to not fall in love, if the above scenario ever did by chance play out and take profits off the table. In the current market environment, I expect any market rally to be short lived. JMHO

FNC is currently trading in a tight range, but the volume pick up on Friday was encouraging, even as it closed down for the day. Last trade of the day on low volume stocks such as FNC are really meaningless as long as the stock remains in it's trading range. On the chart of FNC there is support at $.265 and resistance at $.345, with $.325 being the 13(MA). The one thing from FNC's chart that I find encouraging, is if FNC ever releases assay news and the market takes a shine to it, there is one tasty looking gap to be filled on the chart all the way up to the $1.15 level. It would obviously take one hell of a good looking set of assays for the market to ever fill that gap on the chart, but, stranger things have happened. One word of caution with FNC, this stock is a lottery ticket, plain and simple and we all know the odds of ever hitting a winner. JMHO

Over the next couple of trading sessions it appears the market is poised to be in rally mode. If I was a owner of TSX-v stocks which I'm not, (I currently only own APH as my lottery ticket), I would use this opportunity to exit my positions in as many TSX-v stocks as I could possibly get out of. To me this appears to be nothing more than a bear market rally and will most likely get sold as the reality of the economic mess we are currently in, brings investors back to their senses. Please do not take this as a recommendation to buy or sell stocks, it is merely how I would play the situation. I play the markets to try and make money, not to fall in love with stocks and end up being a bagholder, so obviously I have a shorter term time frame to holding stocks, than many investors who read the morning thoughts posts. I am sure many have noticed my posts on the McFaulds Lake stocks are more on the technical side than the fundamental side lately. That is because I am trying to help those that want help, to get out of their current mess, that many have in their portfolio's. Please don't use any of my comments as buy and sell advice that is not what I am trying to do here. Buying and selling stocks is an individual choice, the statements I am making are only my thoughts and should be treated as such. So take anything I post with a grain of salt and make your own investment decisions. Do your own DD when making investment decisions, not someone else's. However real DD uses not only fundamental analysis, it also includes technical analysis. In the current market environment my best advice is to lean on the side of technical analysis much more than the fundamental side. Taking your money out of the TSX-v exchange and buying beaten down stocks trading on the TSX, makes much more sense to me than trying to play the TSX-v exchange stocks in current market conditions. The stocks trading on the TSX for the most part, will bounce back long before the TSX-v stocks. JMHO

Best of luck to all McFaulds Lake investors.



Al

 

[LOR]

Noront Resources Ltd.

TSX VENTURE: NOT



Nov 10, 2008 16:58 ET
Deep Drilling by Noront Beneath the Eagle One Deposit Intersects 28.5 Meters of New Copper-Nickel Sulphide Mineralization
TORONTO, ONTARIO--(Marketwire - Nov. 10, 2008) - Noront Resources Ltd. ("Noront")(TSX VENTURE:NOT) wishes to report the following results from its exploration activities in the Ring of Fire portion of the McFaulds Lake area of northern Ontario in the James Bay Lowlands.

Noront in its Eagle One Extension Program has been diamond-drill testing the peridotite north-south striking dike or conduit between the Eagle One deposit and the AT1 anomaly, some 800 meters to the south, since earlier this summer. The most recently completed hole in this program, NOT-08-44, entered the peridotite conduit at 294.2 meters and returned 28.5 meters of copper-nickel sulphide mineralization to 322.7 meters where the hole left the peridotite conduit and continued in granodiorite until its end at 375.0 meters.

Following is a more detailed summary of hole NOT-08-44. Assays from the hole are pending and true widths cannot be determined at this time.


---------------------------------------------------------------------------- NORTHING EASTING AZIMUTH Dip LENGTH OBSERVEDHOLE NO. (UTN) (UTM) (degrees) (degrees) (m) MINERALIZATION----------------------------------------------------------------------------NOT-08-44 5843600 547000 090 -50 375 294.2-301.6 (7.4m) diss. sulphides, minor copper- nickel 301.6-315.7 (14.1m) massive sulphides with copper, nickel 315.7-322.7 (7.0m) diss. sulphides, minor copper- nickel----------------------------------------------------------------------------




The mineralization intersections reported are from visual observations and the pending assay reports must be awaited to give a more precise estimation of significant mineralization present. Notwithstanding the foregoing, visual observations are estimates only and pending assay results may not confirm visual observations in whole or in part.

Hole NOT-08-44 is approximately 70 meters vertically below hole NOT-08-28 & 32 previously reported (see press release dated May 8, 2008), which both returned significant core widths of copper-nickel and PGM mineralization from the Eagle One Deposit.

The previously completed eight drill holes (NOT-08-36 to 43) in this Eagle One Extension program were south of the previously known Eagle One Deposit and although they tested the same peridotite host conduit no significant mineralization was encountered.

Drilling is continuing at greater depths beneath the Eagle One Deposit to outline additional copper-nickel-precious metal resources to enhance the economic viability of this deposit. The results of a preliminary assessment of the Eagle One Deposit were released by Noront (see press release dated October 21, 2008) and a full report is expected before December 4, 2008.

Other Noront drills active in the Ring of Fire area include one continuing to delineate the Blackbird chromium deposits and two drills testing airborne geophysical targets elsewhere along the Ring of Fire. When assays pending from the chromium drilling program are received, they will be released as well as assays still pending from the AT-12 anomaly copper-nickel sulphide prospect where initial test drilling was recently completed.

QUALITY CONTROL AND ANALYTICAL PROTOCOL

A thorough quality control program is in effect for Noront's analytical work, which includes grouping samples into batches of 35 into each of which are added 2 certified reference material standards, 2 field blanks comprised of sterile drill core, and a field duplicate. Coarse reject and pulp duplicates also form part of each batch. It can be said with confidence that all assays underway will have passed the strict quality control guidelines as set out by Independent Qualified Person ("IQP") Ms. Tracy Armstrong, P.Geo., of P & E Mining Consultants Inc.

Drilling results in this press release have been approved for dissemination by Noront's senior management including John Harvey, P.Eng., Chief Operating Officer of Noront and Dr. Jim Mungall, P.Geo., Chief Geologist, both being Qualified Persons under Canadian Securities guidelines. The visual mineralization reported herein has been verified in the field by J. Atkinson, P. Geo., Exploration Manager for Noront Resources. Noront is a tier 2 junior resource company on the TSX Venture Exchange, trading symbol NOT, with 129,894,783 shares issued to date.

Investors can also utilize Noront's IR Hub at http://www.agoracom.com/IR/Noront.

ON BEHALF OF THE BOARD OF DIRECTORS:

Paul A. Parisotto and Joe Hamilton, Co-Chief Executive Officers

This press release includes certain "Forward-Looking Statements" within the meaning of the US Private Securities Reform Act of 1995. Other than statements of historical fact, all statements are "Forward-Looking Statements" that involve such various known and unknown risks, uncertainties and other factors. There can be no assurance that such statements will prove accurate. Results and future events could differ materially from those anticipated in such statements. Readers of this press release are cautioned not to place undue reliance on these "Forward-Looking Statements".




The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

For more information, please contact

Noront Resources Ltd.
Investor Relations Department
(416) 238-7226
Email: info@norontresources.com
Website: www:norontresources.com

 

[LOR]

Tuesday morning thoughts from TC

Good morning. Overnight in Asia on the major indices, the euphoria from China's $600 billion dollar stimulus package has come to a screeching halt and the indices are back in sell mode. It certainly didn't take investors long to figure out if China needed that big of a stimulus package all is not as rosy for their economy as has been previously predicted. Today in Asia more gloomy economic data was released, with confidence among Japanese service sector workers hitting a record low in October and South Korean exports sliding 26 percent during the first part of November from a year earlier. Japan's Nikkei average was down 3% after having jumped nearly 6% on Monday. Automakers and exporters led the decline. China's Hang Seng is down 4.77%, however construction and infrastructure related companies climbed for a second day on hopes that China's big spending targeting infrastructure would provide a boon of new orders. Market analyists are calling for further weakness in the Asian indices with year end approaching, as more hedge fund selling is expected to raise cash holdings and prepare for investor redemptions. The sharp sell off across financial markets in October was driven in part by funds selling assets to boost cash holdings, especially with money markets remaining under such severe stress. Highlighting the cross-asset liquidation in October, data on Tuesday showed foreign investors dumped a record 2.7 trillion yen ($27.6 billion) of Japanese bonds in addition to 1.32 trillion yen ($13.5 billion) of stocks last month. Emerging market stocks as measured by MSCI lost around 3 percent today, taking that index into negative territory in what would be the fifth month in a row for losses. The emerging market index has lost 54 percent of its value so far this year while its developed market counterpart has lost 41 percent. The worries about economic and corporate growth also spread to commodities, which had rallied strongly on Monday because of the Chinese stimulus package. Demand for commodities and hence prices generally fall when economies slow. I expect the 9% growth that had been predicted for China's economy to be revised sharply lower, sure seems like lofty numbers with the rest of the world experiencing negative growth for the most part.

In Europe the major indices have all opened lower this morning, most down in the 2% to 3% range. The European indices are tracking losses in the US and Asia, as economic worries returned to the fore to hurt global markets, knocking oils, miners and banks. In England the economic gloom continues with British retail sales falling for a fifth straight month in October. British house prices fell slightly less sharply in the three months to October than in the three months to September, but home sales hit the lowest in at least 30 years. Heavyweight oil companies are down sharply in Europe as crude prices have fell back to the $60 range. Lower metal prices are contributing to another sell off in the mining sector. However the biggest losers in todays slide in Europe are the bank stocks, as investors worry that the Asian banks may now need to raise capital. Everything is doom and gloom presently in Europe today, so far.

On this side of the pond in North America, the US futures are pointing to another down open for the US indices. Yesterday GM shares fell to 62 year lows on a brokerage downgrade and today we are hearing forecasts that Goldman Sachs will post its first-ever quarterly loss. Yesterday the Fed restructured its bailout of American International Group Inc, raising the package to a record $150 billion with easier terms, after a smaller rescue plan failed to stabilize the ailing insurance giant. Then AIG reported a record third-quarter loss of $24.47 billion, largely from writedowns of investments. The new package, at least $27 billion more than was previously extended, will leave the government exposed to billions of dollars of potential losses. Under the new plan, the government will get a $40 billion equity stake in AIG, spend as much as $30 billion on securities underlying the insurer's credit default swaps, and spend up to $22.5 billion to buy residential mortgage securities. The good news is AIG will also accept curbs on executive pay, including a freeze of bonuses for its top 70 executives. There is nothing on the economic calendar today so the markets will be left to the manipulation of the news media for market direction. The downward selling pressure on commodities does not bode well for the Canadian indices unless this trend turns around before the markets open. Ruby Tuesday is once again rearing it's ugly head.

Back in McFaulds Lake, NOT had another dismal day as the share price lost another 6.41% and closed right on support. Judging by the amount of trades it appears it was the small retail investor that was throwing in the towel on yesterdays sell off. I won't go into rambling about the chart as yesterday after the close NOT had a long awaited news release and today will be show and tell time for NOT's share price. It appears Prof Mungall's theory that their should be more pods of Eagle One like mineralization at depth around the original discovery was correct. NOT announced they have found a new discovery 70M under the Eagle One deposit. One hole proves nothing, however the share price should respond to yesterday's announcement. If NOT can do a step out from yesterday's discovery hole and hit again, it would be hard to believe NOT's share staying at current share price levels. In fact I expect NOT's share price to get some speculative fever today and will be surprised if NOT closes the day under $1. This was just about the best news possible for current NOT shareholders. If NOT's share price doesn't respond today from yesterday's news I would throw in the towel if I was a shareholder. I currently own no shares of NOT, but would like nothing better to jump back in and see this stock pick up the volume and come back into play. I think yesterdays news will finally turn the share price around. On the chart NOT has support at $.66, with resistance at $.86 and the 13(MA) is now at $.85 and falling. Judging by the chart of NOT, yesterdays after the market closed news release was a well kept secret, because there just isn't anything on the chart to suggest the share price will turn around anytime soon. Perhaps I am wrong about expecting NOT's share price to bounce and bounce hard to the upside today, but we will soon find out. "IF" NOT's share price breaks out today, the 1st real heavy resistance level is all the way up at the $1.44 level, it's 50(MA). For all those still holding NOT best of luck today.

FWR's share price was strong yesterday and bucked the trend for the McFaulds Lake stocks and actually closed up a half of a cent to close at $.195, up 2.63%. As I noted yesterday, the inverse head and shoulders pattern remains on FWR's chart and any break above $.23, it's 50(MA) would be very bullish. From the chart FWR has support at $.185 and resistance at $.205, with the 13(MA) at $.18 and showing signs of turning up. All systems look like blast off may be very near at hand for FWR's share price. JMHO

For McFaulds Lake investors, yesterdays news from NOT appears to be good news to me. How the market reacts to it, is another story, I assume it will be favourable. However, this news is truly only good for NOT's share price and possibly FNC and FWR's. If by chance the McFaulds Lake stocks in general get a boost today from NOT's news, I would take the opportunity and try to get out. Current market conditions are just not favourable to be holding junior mining stocks and I don't this changing any time soon. Many investors are turning to the cover of playing the ETF's and are avoiding owning individual stocks like the plague. Those that refuse to follow the trend and get out of junior mining stocks, are like standing in front of a fast moving train, your chances of survival aren't good. Many novice investors fail to understand how the markets work and think the stocks they are holding just can't fall any farther. They often learn the sad reality after it is too late.

Best of luck to all McFaulds Lake investors.




Al

 

[LOR]

Wednesday morning thoughts from TC

Good morning. In Asia overnight it was another day of losses for the major indices. In China the Hang Seng was down .73% and in Japan the Nikkei was down 1.29%, the losses were not as severe as Tuesdays, nonetheless the trend was still down. A government survey in Japan showed that consumer confidence hit an all-time low in October. The fall in confidence is another sign that global market turmoil is spreading quickly, with the economies of Japan and some developing nations heading into recession, prompting central banks to cut interest rates. Japanese exports, a key driver of the world's second-largest economy, tumbled in the first 20 days of October as the stronger yen and the global slowdown took hold. Japan is not alone. The International Monetary Fund forecasts that developed economies will shrink in 2009 for the first time in half a century due to damage from the credit crisis. China's retail sales data on Wednesday pointed to slowing consumption and the World Bank said more countries were seeking its help. The World Bank expected its lending to increase to $35 billion this year from $13.5 billion last year, adding that countries such as Mexico, Indonesia and Colombia were tapping its contingency financing fund amid worries about access to credit. Amid all this turmoil investors are now focused on a summit of world leaders in Washington on Saturday for solutions.

In Europe the major indices opened higher then quickly gave up the gains and are now back trading in positive territory. Investor sentiment turned sour when England released data showing British unemployment rose to its highest level in more than a decade in the three months to September as the economy tips into recession. Currently drug stocks and telecoms are leading the European indices higher. Energy stocks are under selling pressure tracking weaker crude prices and financial stocks are weak over continued concerns of a deep recession. In England the FTSE is down 41% this year so far, hit by the credit crisis and resulting economic slowdown. A report today by the Bank of England stated, that the British economy will shrink sharply next year and inflation could fall to just below 1% in two years, this is gloomiest set of forecasts in more than a decade and this after it cut interest rates by 1.5% last week. There is investor confidence about how the bank is going to react. Clearly interest rates are going to fall further.

On this side of the pond in North America early futures numbers are pointing to a flat open for the US indices. Concerns over the health of the global economy eclipsed hopes of a rescue package for the stricken auto sector. Shares in the US automakers tumbled on Tuesday as investors continued to fear that the industry would not survive the financial crisis, which has hurt consumer confidence and spending. Worries over corporate earnings and the prospect of a steep global slowdown continue to hit stock markets worldwide. The Dow Jones industrial average is down 35 percent so far this year, while the S&P 500 index is down 39 percent. There is nothing on the economic calendar again today and the biggest name to report earnings is Applied Materials (AMAT). Commodities are under selling pressure this morning which will not bode well for the Canadian indices if it doesn't reverse before the open today. However I will be buying ETF's today on the US indices at the opening bell, it is my belief we are on the verge of a major run up in the American markets. My plan is to buy HSU-t and HQU-t, as I believe Obama mania is about to bring investors on a major buying spree on the US indices. Please remember this is only my opinion and treat it as such. JMHO

Back in McFaulds Lake, NOT had another dismal day falling a further 2.73% on above average volume. This weak share price showing was a total surprise after the announcement of another discovery 70M under the original Eagle One discovery. It appeared every time NOT tried to get a rally going someone was selling it down hard. I know investors were talking about why NOT had released the visuals of their new discovery after the market closed, almost like they were trying to hide it, when one would think it would be something the company would want to promote. Then after the market closed yesterday the real news was released, the bomb shell, the announcement of a 25 million share flow through PP at $.80, which really equates to a share price around $.50 after the tax implications are thrown in. The real reason behind the Rosseau proxy battle has finally been played out and the retail investors are livid. It appeared to many that NOT already had enough cash in their coffiers to last around a year and there was no real need for this PP. Well they are somewhat right, this isn't about raising more cash, this is all about Rosseau and friends lining their pockets, to cover up their past mistake, of buying into the last PP at far too high a price. Funny how the big boys come up with innovative ways to cover their asses when they make a huge corporate blunder. The 20% dilution factor to retail investors has many of the permabulls in a dither. Which makes me what to fall off my chair in laughter. Are these the same permabulls that deleted posts and called people bashers on Agoracom, when people tried to raise the red flag months ago? Are these the same permabulls who were telling novice investors that they had done their DD and not to worry about the share price, wake them up when NOT hit $20 a share they were saying, anyone remember any of those comments? Perhaps some of these permabulls really hadn't done their DD after all? Are these the same permabulls who were predicting moon shot prices for NOT, when at the same time they were selling their cheap pre Eagle One shares to the sheep they were pumping to? I have to say to the permabulls, don't blame Rosseau and associates for what just happened, take a little detour to the mirror, that face looking back at you is the real person you should be blaming. The sad part is the countless unsuspecting novice investors who listened to these pumpers that are now sitting on such huge losses. I did take the time last March and April to PM many of the permabulls on Agoracom and warn them what they were doing on that site was wrong, sort of glad now I saved those PM's. I have had numerous PM's from readers of this board why Tangipahoa is allowed to bash Nemis, and my response has always been, because I remember when he was run off the Agoracom boards when he tried to warn people about NOT. No one cared about him then when he was bashed on Agoracom, his posts deleted and he was publicly trashed by the permabulls, it seems many have memory losses about that. Looking back I bet many wished his posts had been allowed to stand now and they had paid attention to his warnings. Yes, many will say hindsight is a wonderful thing, but he hit the nail right on the head and that was way back last winter. I will say this once again, the permabulls on Agoracom are a very dangerous group. The sad part is they are responsible for countless dollars worth of losses to investors who got caught up in their hype. They have left a trail of bagholders who I doubt will ever recover their losses. The funny thing about the permabulls is they are now bashing NOT management on the Agoracom NOT board, wouldn't it be a twist of fate if NOT management now starts having their posts deleted?

The good news for NOT investors, is now that the PP fiasco is behind them, perhaps NOT's share price won't be held down anymore. Once the exchange approves the PP, it certainly wouldn't surprise me if we get a fresh batch of very positive news from NOT. The recent discovery of another pod of I assume high grade nickel, 70M under the original discovery could be a monster, if it is as big as Prof Mungall has said is possible. In fact it is entirely possible that several pods of mineralization will be found in that area, as offshoots of the original discovery at varying depths. NOT may be down right now, but obviously there is a lot more to the story that will be told over the coming months. The problem for many retail investors who bought in at much higher share prices, is the company will probably be sold to a major, before the story ever gets told in its entirety. The Rosseau group appears to just want their money back with some decent gains, they have no real interest in being explorers in the true sense of the word. This is where Dick Nemis will be sadly missed, it was his baby, his desire was truly to get the maximum amount of wealth as possible, into the wallets of the retail investors who stood behind him for many years. The guy truly did have a huge fan club that followed him. No matter what anyone says about Nemis, he did appear to honestly have the best interests of the retail investors in his heart. In this day and age that is very rare and is a testament to the man, he will be long remembered by his fans.

Best of luck to all McFaulds Lake investors.


Al

 

[LOR]

Monday morning thoughts

Good morning. Overseas in Asia on their major indices the Hang Seng traded flat, down .10% and the Nikkei was up .71%, the $US rose against the Japanese yen but it was in a very narrow range. Japan announced that it's 3rd quarter results has now officially put it in a recession, joining the Euro zone. Leaders of 20 leading economies, meeting in Washington over the weekend, agreed on a host of steps to rescue the global economy from the worst financial crisis in 80 years. But they left it to individual governments to tailor their response to their own circumstances and troubled industries. So investors perceived the G20 meeting to be long on rhetoric but short on specifics. The real purpose of the G20 summit was to agree to a set of reforms for the global financial system. In that respect it appeared to be a success. The G20 statement said that all financial markets, products and participants would be subject to supervision, vowed tougher accounting rules, a review of compensation practices and greater cooperation between national regulators. Finance ministers were told to develop specific plans with the first set of actions to be completed by the end of March, and a follow-up meeting held by the end of April. One Asian analyst from UBS, summed the situation up pretty well to his clients, "We see little reason for de-leveraging as a key theme in global markets to abate and we continue to look for further yen and dollar strength over the coming 1-3 months, at the expense of the high yielding currencies and the euro." The Australian dollar initially sank over 1.5% early in it's trading session, then apparently the Reserve Bank of Australia intervened and it was up 0.8% for the day. One thing that became evident in the Asian indices today, after the weekends G20 meetings, Asia was in wait and see mode, needing direction from the US indices. Tomorrow the Asian indices will most likely follow the direction of todays trading in the US indices. The Asian indices are obviously not leaders, they are followers.

In Europe the major indices are also lacking leadership, they opened down, then reversed as oil started trading higher, but are now trading lower, as economic gloom forecasts, has investors running for the safety of sitting on the sidelines. European investors apparently take little comfort from pledges from leaders of the Group of 20 nations to stimulate growth. In England more gloomy data was released on reports that house prices have fallen 2.9% in November so far. The Confederation of British Industry also released their gloomy forecast that England will suffer its sharpest economic contraction in almost two decades next year and the number of people out of work could rise to nearly 3 million by 2010. The financial stocks are todays biggest losing sector in Europe, followed by energy and mining stocks on weaker commodity prices. There is just nothing seen as positive on the horizon for equity prices to rally in Europe at this time. However, if history is a lesson, just when things seem the bleakest is when often the markets turn around. I doubt this time is any different.

Over on this side of the pond in North America the early futures numbers are pointing to another down open for the US indices, however it is early, lots of time for this situation to reverse. On the economic calendar for today at 8:30am the NY Empire State Index numbers are released followed by the Capacity Utilization and Industrial Production numbers at 9:15am. Technically the US indices need to hold the line this week, after the DOW double bottomed last Thursday from previous lows set in October. Currently the weak commodity prices in Europe doesn't bode well for the Canadian indices for the open today.

Back in McFaulds Lake, NOT closed out last week flat, up $.01 on Friday, on lower than average volume. However for the week NOT was down another 10% and week after week NOT continues to fall. For today NOT has support at $.59 and resistance at $.77 with $.80 now being it's 13(MA). The chart indicators are showing NOT to be oversold and there are some early indications that NOT may have bottomed out last week and is on the verge of turning itself around. For those looking for an entry point I would wait until NOT was trading above it's 13(MA) and then use the 13(MA) as my line in the sand support point and would stop out if the stock started trading below it again. I currently have very little interest in playing any stocks trading on the TSX-v exchange, however if I was going to play one NOT would be near the top of my list. My reason would be this, I think we will see NOT turn the corner here shortly and trade up around the $1 level, otherwise they are going to have a rough time ever selling their previously announced PP at $.80 to anyone, "if" that was ever their intention. The one downside I suppose is they could possibly take the share price lower and reprice the PP lower. However the public outcry from current shareholders on the added dilution would be a little loud. I had the opportunity to read the NOT board on Agoracom last night and I noticed the absence of many of the past permabulls, it appears there is a new crowd on the board now. Could it possibly mean that many of the past permabulls have thrown in the towel and moved on? If so, this would be a very bullish sign that NOT's share price is about to turn around. Past experience tells me many permabulls, will finally sell at the bottom, just before a stock turns itself around. After spending some time reading the Agoracom boards, I decided to take Agoracom off my bookmarked site list, putting it right up there in the same category as Stockhouse as a complete waste of time. Looking back I suppose it always was a wasted effort to read something that was so one sided anyways. So there no further mention will be made about the permabulls from here on, so no need for anymore nasty PM's boys.

Looking at the charts of many of the other stocks in the ROF, there is really no need for further comments about any of them. Most appear to have very little interest from investors and personally I would avoid any further investment in any of these stocks anytime soon. I have been warning investors for weeks now that if I was in any of these stocks that I would reduce my exposure, hopefully a few investors heeded this warning and are better off for it at this time. One only needs to look how the TSX-v exchange is struggling to hold the 800 mark to understand why investing in this sector is very risky. Anyone that just has to own stocks in the TSX-v, buying nothing but the very elite stocks in the index would be the way I would play it. NOT being voted the #1 stock on the exchange would be the only reason I would put it at or very near the top of the list for possible stocks to take a chance on, even it is risky because of the obvious disinterest in junior mining stocks, at this time. Waiting for the index as a whole to turn around would seem like the prudent plan to me. JMHO



Al