Ellixor Financial Investments

Ellixor - investment picks for microcap stocks.

Friday, February 17, 2006

Investment Ideas - Volume #1

The following are my investment ideas for Friday, February 17, 2006

Selient Inc. (HTI.V) Bid 0.12\Ask 0.175

Selient Inc., formerly Homebank Technologies specializes in providing Credit Unions with a centrally hosted software solution to improve the efficiency of their lending operations. They have achieved success in Canada and are currently endevouring to expand their foot print in the U.S. space. They have just acheived thier first milestone and signed their first U.S. customer: First Community Credit Union, the largest Credit Union in North Dakota which bosts 28,000 members. This is a 3 year deal which will help Selient establish credibility in the U.S. marketplace.

I have been watching this stock for 3 years now, it has a good management team and a focused business plan. If they can follow through on thier expansion into the U.S. credit union market and maintain thier solid reputation in the Canadian market, at their current market price I see significant upside with little downside risk. I encourage any would be investors with a high tolerance for risk to check out this stock. I will report agian on HTI.V after thier next set of financials are made available.

BCMetals Corporation (C.V) Bid 0.70/Ask 0.72

BCMetals became a Teir 1 issuer on Dec.22 of this year. They continue to move towards developing an open pit copper and gold mine in on thier Red Chris Property. To that end they have issued letters of intent to enginering firm AMEC and Merit Consultants International Inc.

With copper and gold prices at their current levels this project could be a profitable one. Yes, the mine probably won't come on line until 2008. However, demand from China doesn't appear to be slowing down anytime soon. The general consensus in the market place is that new exploration and new mines are needed to continue to meet the demands from China and elsewhere for copper and gold.

Haywood Securities came out wih an analyst report in April of 2005 as a sector outperform and a target price of $1.15, that was when the price was at about $0.40. With continued progress this still looks like a possibility. I'd look for a slightly lower price point of mid to high $0.60's to load up. This is a play on gold and copper prices at this point with a positive story. The management team appears to be strong and is serious about going forward. A real company with real prospects. This is a high risk investment but with good prospects if you think the resouce sector is going to remain hot.

Adanac Moly Corp (AUA.V) Bid 1.09/Ask 1.10

I missed this one at a $0.65 back in December of 2005. It would appear that they are now seriously moving towards a proposed open pit mining operation on their Ruby Creek property near Atlin B.C.. Estimates from golder Associates Ltd. were released yesterday. Molybdenum prices have moved slightly higher, both appear to have been good for the stock.

Adanac is a play on Molybdenum, a metal used to increase the strength of steel. Thus, as steel production and use goes, so does the price of this metal. The price of molybdenum was run up from 2004 when it traded around $5/lb. It then peaked at about $4o/lb mid way through 2005 and is currently at about $25/lb. Is this a sustainable price. If so, going forward and bringing a mine into production makes sense. This is a high risk play. I am not sure I am comfortable with the current price but should the price decline it might be worth picking some up. You have to keep a close eye on the macr picture with this one. Steel demand and the supply of molybdenum in the market place. Supply has improved greatly from the end of 2005 through to early 2006. However, with continued expansion in China and the building boom steel production and use could possibly spike again. This stock is in play and we may have missed the boat on Adanac but it is one to watch. This site is helpful for keeping a tab on supply and demand http://minerals.usgs.gov/minerals/pubs/commodity/molybdenum/.

1 Comments:

At 1:44 PM, Blogger Srebrenica Massacre said...

Hi Jeff,

Check out Sarajevo Photo Tour (Summer 2005).

PS: Sarajevo is capital of Bosnia.

Here is the link:

http://srebrenica-genocide.blogspot.com/2006/02/sarajevo-photo-tour.html

 

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