Aggressive Strategy July 6, 2007:          

Breakwater Resources announced this week that it has commenced commercial production at the Langlois Mine in North Western Quebec. The company started development of Langlois in December of 2005 and expected to be in production by mid 2007.

Analyst estimates are for the company to earn 45 cents per share in 2007 and this should increase to 57 cents per share in 2008. If the shares were to trade with a low price earnings multiply of only 10 times they should trade in the $4.50 to $5.70 range over the next year or so.

I am moving the target price of BWR to $4.50 from the previous $3.00 level.

Bombardier continues to bring in major new contracts and the shares have been moving higher as a result. It seems that the company may be back on a track to growth after a number of years of restructuring. The company’s main business units have been winning contacts on a global basis and management appears to have turned the company around and back to the growing globally competitive business that it was in the 1990’s.

I am increasing the target price on BBD.B to $8.00 from $7.00.

Westport Innovations (WPT) has moved up nicely over the past few weeks trading this week around the $3.00 level, (maybe someone is reading my stuff). I am increasing the target price on WPT to $4.00 from three as a result.

The uranium sector has been taking it on the chin over the past few weeks as the price of uranium has leveled out and actually fell by a dollar a pound this week, the first decline in the commodity price in over four years.

I still believe the uranium sector offers excellent potential over the long term and would move all stop prices down by 10% or so until this period of short term weakness is completed.

If the share prices of Dennison, Ur-Energy and Paladin fall from the current levels they will be an excellent buy for those willing to accept the volatility in this sector.