Great Investments

Great investments with tremendous potential in a modernizing world.

Tuesday, April 25, 2006

 

Roxmark Mines for the Long Term

Roxmark Mines (RMKL in Canada on the CNQ exchange, RMKMF in the U.S.), is a Canadian junior gold and molybdenum mining company with 12 properties in Northern Ontario. Roxmark is probably the closest junior miner to molybdenum production, which should come in the next couple of months, and they should get listed on TSX soon, too. Both events should help it move much higher from the CNQ doldrums it's been in (CNQ is seen by some as the pink sheets of Canada). They also have great prospects for high-grade gold, with some of the richest old gold mines in Canada.

Here's a good article about molybdenum that mentions Roxmark: http://www.321gold.com/editorials/moriarty/moriarty042006.html.

If Roxmark gets some of the performance that other molybdenum stocks have had in recent months (IGMI has tripled, AUA has quadrupled), the stock should perform very nicely, and their gold properties should help them to tremendous long-term appreciation. If they can reopen some of their six formerly producing gold mines and use new technology to get the gold, Roxmark could be an enormous winner for the long term. The near-term revenue from moly this year will help them fund the development of the old gold mines.

We believe Roxmark shares are likely to go much higher over the long run if things go as planned. We like the molybdenum giving them near-term revenue, the TSX listing giving them more investors in coming months, and the huge upside with the gold properties. RMKL just broke out of its base from the last year under .20, and is trading at around .21.

If you buy RMKMF, it's probably best to get a quote of RMKL (from a broker or the CNQ exchange directly) in Canadian dollars first and calculate the U.S. dollar amount you want to pay for RMKMF. The Canadian dollar is at about .88 vs. the U.S. dollar. It trades really thin, but that should improve once they get listed on the TSX (Toronto) and go into molybdenum production. It will be much easier for Canadians to trade once it starts trading on the TSX.

You can get more info on Roxmark at http://www.roxmark.com.

Friday, April 21, 2006

 

JER Envirotech for the Long Term

JER Envirotech (JER in Canada) is a Canadian manufacturer of wood-plastic composite (WPC) products. JER mixes wood waste (sawdust, rice husk) with high-grade plastic to produce a better alternative to pure wood and plastic products. JER's WPC products can be used for a wide variety of products across many industries with better characteristics than pure wood or plastic.

By taking wood waste and incorporating it into useful products, JER helps preserve the environment while decreasing the cost of materials. In the current world climate of rising raw material costs and environmental decline, JER plays a vital role as a socially responsible manufacturer.

To develop their patented technology with 42 different WPC compounds, JER worked jointly with the National Research Council of Canada. This partnership means that JER's patents have the backing of the government of Canada.

In the past year, JER has put its first plant into production in Canada and has had several major companies from different industries test their panel boards and pellets (the only WPC product in the industry that can be injection molded) across many different applications. These companies wanted a lower cost material with similar or better quality and lower life-cycle costs than what they had been using. For example, JER's construction panel board not only costs less than the alternatives, but it doesn't rot or warp with moisture, is termite proof, saves on heating costs, is fire retardant, can be nailed or painted just like wood, is sound resistant, and is lighter and easier to work with. JER's other products offer similar benefits.

This year, JER is ramping up their production capacity in Canada and Asia to meet demand. A plant in Malaysia should be ready in a month or two, followed by expansion in Canada in the summer, the Philippines in the fall, and India around the end of the year. A plant in China is planned for about a year from now. Once all this production is in place, JER will be able to satisfy demand such as an agreement to provide 50,000-200,000 homes in coming years in the Philippines. There's massive demand for housing in Asia as that area develops.

JER is currently trading just over $1 in thin trading. Insider buying at $1.04 and a recent private placement with institutions at $1.10 provide support in the $1 area. JER hit a high of $1.45 in November 2005. As JER's plants move into production over the next year, we expect the stock price to react positively.

Those investors wanting to take advantage of the global shift in coming decades as Asia industrializes, but looking for an alternative to energy and metals stocks for diversification purposes, would do well to add JER to the portfolio. The company has enormous potential and is just getting started. We believe that JER is a great buy in this area for the long term, with tremendous upside if Asian demand grows as we expect.

See http://www.jerenvirotech.com/ for more details on JER Envirotech.

Wednesday, April 19, 2006

 

Avino Silver & Gold Mines for the long term

Avino Silver (ASM.V in Canada, ASGMF in the U.S.) is a silver and gold mining company based in Canada with top silver prospects in Mexico and Canada. Avino recently acquired the 51% of its namesake Avino Mine in Mexico that they didn't already have. Avino plans to get silver revenue from 3 different sources to provide for near-term, mid-term, and long-term revenues:
  1. Near term: Tailings from prior production, which they plan to harvest in coming months
  2. Mid term: The previously operating Avino mine that still has lots of silver and should be back in production within a year or two
  3. Long term: "11,000 hectares of highly prospective land around the mine, of which no one inch has been explored by modern exploration methods." (from article linked at bottom)

Avino hasn't moved up nearly as much as some other silver stocks in recent months, and remains cheap relative to the amount of silver they have and how close they are to production. We also like that it can be bought in the U.S. under ASGMF, which sometimes trades at a higher volume than ASM does in Canada.

Avino hit its high on 4/3/06 when silver was in the 11's. With silver having rallied to over $14 and Avino looking to break out of a triangle pattern in an uptrend, we believe Avino represents a great long-term investment. With silver having run up sharply recently, it may be due for a pullback soon, but we believe any pullback in Avino shares represents a good buying opportunity for the long term.

The author of the Silver Stock report likes Avino because it's one of the most highly leveraged silver stocks there is: http://silverstockreport.com/email/Avino.html

Here's a good overview of Avino from October: http://www.silverstrategies.com/story.aspx?local=1&id=1536


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Disclaimer: Great Investments may have a position in all or some of the stocks discussed in this blog, but is not paid by any company to promote their stock. Great Investments contains opinions, none of which constitute a recommendation that any particular security, transaction, or investment strategy is suitable for any specific person. Great Investments does not provide personalized investment advice.

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