Seacoast

D. Stewart Armstrong
June 15, 2008

It’s Official: There is “Blood in the Streets”

I do believe its official: we have “Blood in the Streets”. However, the mess is being cleaned up and the aftermath hidden away very quickly. Those in power don’t want you to know what is really happening. After all, “Blood in the Streets” is not a good thing—its messy, its yucky, and people can’t concentrate on their shopping.

However, it must be made to look like its being “cleaned up”, so just consider this condition to be another “hose job” resplendent with copious amounts of “jawboning”. The hose is the best means of “cleanup” especially if the contents from the hose are under pressure. Therefore, we have a pressure washer cleanup caused by a pressure cooker financial atmosphere. Consider this an unofficial warning because we’ve all been hosed ’tis true; however the future holds a host of additional hosings for all of us. This process is going to repeat itself until one of two things happens: the citizens of this country, extraordinarily tired of being hosed, will demand more transparency and truth from their government or we’ll find ourselves a third world country with a currency that is non functioning. What do you think is going to happen? How do you feel this is all going to play out?

By all means submit your comments to consulting@seacoastpub.com .

Do you believe the government inflation numbers from their Bureau of Labor statistics? Do you believe what you are hearing (the aforementioned jawboning) or do you believe the prices you are seeing and paying at the gas pump and the supermarket?

Do you believe that the Fed is going to raise interest rates? If they do indeed raise them to “support” the dollar, it may be lights out. Nothing will hasten an economic downturn faster than raising rates when there is historically high illiquidity, historically high gas prices, and “bubbles” up the ying-yang. The one thing they’ve managed to do via paper is to keep the price of precious metals under the radar. Never forget that the precious metals are the canary in the coal mine; the thermometer of the economy. If the powerful can manipulate the thermometer they can pull the wool over the eyes of average Americans. Currently in terms of inflation adjusted dollars, gold should be somewhere north of $2000 per ounce. So remember the objectives of the Power Elite: Keep the Dow Up and Gold Down (and never let them know you’re hurtin’!)

Now remember, the powerful don’t believe you and I can really feel the economic effects (the pinch) of that $5.00 gasoline, $4.00 milk, and $4.00 bread. In other words, they’ve really tricked us this time—yesirreeebob, they really have. We have no idea that they’ve plundered (expanded) the money supply and have caused rampant inflation. They are just too clever for the “average type bear!”

Here’s the crux of it: Do you believe that Congress and the current American system they’ve created along with their perks, power, partnerships, and privileged people will be disbanded in order to form a more perfect union? If you do, I not only have a bridge to sell you, I have the river for sale over which the aforementioned bridge was constructed!

If you do have funds for investing, what are you buying?

Surprise, surprise! Precious metals and junior mining companies are at the top of my list. Junior Mining Companies really do have blood in their streets. So what is the old axiom? Buy low and sell high. Buy when there is blood in the streets?

Quality Junior Mining companies are at historic lows; especially in this cycle. Buy! I’m going to give you a list of five companies. I think they are at incredibly attractive entry points given their management, their assets, and their locations.

The key here is Patience-Patience-Patience!

I am suggesting that the prices of these companies are reflecting “Blood in the Streets”. Could they go lower? Well of course they could, but I don’t think by much. A good rule of thumb is not to be too greedy. Take your 60% out of the middle. You’ll never consistently pick the tops or the bottoms. So the best idea is to leave the 20% on each end of the spectrum for those crazy or greedy enough to think they can pick the precise tops and bottoms. I will tell you that right now is an incredibly good time to be buying quality Junior Mining stocks, especially in precious metals and energy.

This is an environment where you or I cannot “talk up” a stock. This is an environment where all you can do is to point people in a certain direction and then they make their own decisions. Keeping quality companies on the radar screen is a good bet for future gains.

We’ve heard it said so many times that you buy low so you can sell high; you don’t follow the herd; you do not behave like a lemming; the crowd is almost universally wrong—don’t follow them, and of course, you buy when there is blood in the streets. This is one of the reasons why I am recommending these companies now– I find them to be incredibly good values considering the projects, their management, and their price.

One final thought on these companies. I personally know the management of each one of these companies having spent hours and hours with them on the phone. They all have integrity. Just because their stock prices are depressed is not an indication of anything other than market shenanigans. These companies will sell themselves if you take the time to visit their websites, review their latest press releases, and do a little “googleing” . Once you realize that the management is square, the rest falls into place given the excellent projects they represent. Remember, these are high risk, high reward types of investments.

Oromin Explorations. (OLEPF.OTC ) Six drills working almost 24/7 outlining enormous deposits in Senegal, Africa. That’s correct—I mean plural as in many deposits. I promise to have something more extensive to you in the near future. Suffice it to say, Oromin has to be my number one pick for 2008-2009. It is now selling for less than $2.50. Be certain to visit their website at www.oromin.com. ducate yourselves! You don’t need me for that! Remember that Mine-Tech, the “parent company” is led by Chet Idziszek, an extraordinarily seasoned geologist and business person who has Oromin Exploration, Madison Minerals (MMRSF-OTC), and Lund Gold (LGD.CA) under their umbrella. It would appear that Mr. Idziszek knows many of the movers and shakers in the industry having been named Canada’s Mining Man of the Year a dozen years back after helping to discover Arequiupa. His associates include David Mallo and Doug Turnbull, two of my favorite people in this sector–as much for their humanity as for their geological expertise. OLE is going to break loose one of these days and you won’t want to miss this ride.

Geocom Resources (GOCM-OTC) Excellent management by way of John Hiner and 35 years of experience. Look at their latest press release from South Chile. They have an excellent business model with Kinross, BH Billiton, and Latin American Minerals as JV partners. Price: around $.15 IMO, I’d buy a boatload. This is what you call leverage, real leverage backed up by integrity, a very small tight nit group of JV partners such as Kinross and BH Billiton, and a list of high quality international projects that will knock your socks off. Simply review their latest press releases and you will be sold. www.info@geocom-resources.com will put you in touch with Samantha Hayes, Mr. Hiner’s IR representative. Incidentally, contact me for their free GOCM CD which has been a big hit. Email me at www.seacoastpub.com and I’ll have one sent to you at no cost. It is linear, informative, and comprehensive.
Journey Resources (JNY.CA ) Solid management with excellent silver projects in Peru and in Mexico. www.journeyresources.com They have an excellent website and work with advanced stage projects which are very close to production.. They will be producing silver in the next year or two and are close to having a 43-101 completed. Price is around $.20. This company also has huge potential and I know what Jack Bal is trying to accomplish and that is for Journey to be a major silver producer. This is an incredibly hard working team which includes Andy Prose and Michelle Larmer. Do review their latest press releases.
Golden Phoenix (GPXM.OTC) has been one of my favorites for the last several years. They are selling at around $.17 a share, which I find to be absolutely ludicrous, but hey, that’s just me. They have a molybdenum project in Ashdown, Nevada, which is producing millions of dollars in revenue every quarter, they have the Mineral Ridge mine which holds enormous promise, they have their own drill rig that they are purchasing, one of the best websites on the web, and an excellent management team, headed up by President Rob Martin. I have several articles on this company on this website so again, it is simply one of those situations that begs for attention. Of course, when the stock is at two or three dollars a share, everyone will be saying ”Why didn’t I know about that company?
GPXM appears to be stuck in a rut, because investors can’t see past a few reservations which may have been relevant early on but are no longer valid. Golden Phoenix is going to be one of those companies that surprise people out of the blue. Only, of course, it won’t be out of the blue but as a result of hard work and perseverance over half dozen years.
Newport Gold (NWPG-OTC Newport is selling at seven cents a share. This is another company that will be a big surprise when it finally gets some real-time exposure. Currently they are in a “building mode” and are being led by Dereck Bartlett, their CEO. Alex Johnston is on board and he is very savvy in the financial end of things. They have a website, which is www.NewportGold.com. They have a property called “Burnt Basin” in B.C. Canada and all I can say is that it behooves us to review the latest press releases and calculate how much that “rock” values out to on a per ton basis. It is well over $500 per ton “rock” which is impressive by any standards. Newport Gold is a classic “sleeper” and I have spoken to many of Derek’s past employees and all to a person, have had positive things to say about the man. There is a “China Deal”in the works but it is not being heavily promoted at this state. Like I said, they are in a building mode and most people would simply pass this one by–However you now know better.
In my opinion, all of these companies are worth salting away and waiting for the market to come to you. This is why you buy these companies at this point. Some of them are selling for less than book value, and some of them could make, are making significant discoveries. No one seems to care. But we’ll get to do that another time. At seven cents a share, a thousand shares will cost about $70 plus commissions. Do the math. Right now is the time to remember that there is “blood in the streets”. read more