Thursday, April 13, 2006


Weekly Summary

In relative terms, it was another successful week. My portfolio gained $1,376 (0.2 percent), outperforming the S&P 500 (down 0.5 percent), the NASDAQ (down 0.6 percent), and the Russell 2000 (down 0.7 percent).

Like any good investor, I'm always asking myself what I should have done better in the past and what I should do better in the future. One thing that I should have done better, but didn't, is focus more on picking stocks in hot industries. Although I have had some exposure to the energy and materials sectors, in retrospect, it is clear that I should have weighted these sectors more heavily.

What that in mind, I picked up 6000 shares of Pine Valley Mining (PVMCF.OB) at $1.41 this morning. It's a Canadian company. Unlike most smaller Canadian natural resource companies, this one trades on the TSE. Admittedly, the company has had plenty of problems. However, all four analysts that follow it (Bay Street analysts I presume) rate it a buy or strong buy. Although earnings estimates have been knocked down several times, the company still trades at about 5 times forward earnings. However, what appeals to me most is that the company controls a huge about of coal reserves that have yet to be tapped. I'm also told that Fox News regular Tobin Smith is bullish about this stock. I'm not sure if that's a good thing, however.

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