TAKE SOME ATY OFF THE TABLE

PARE SOME ATY @ 23.80
I want to pare some ATY at 24.50, and as usual, it never really get there. On the day it went over, the broker’s computer system broken down. I guess there is a more powerful force there against me and I’d better to pare some when I still can. I am still positive about the story and I believe I still have more than sufficient exposure for a good news on December 21. A 12.5% return for two month is not too bad at all and it certainly well above my return TARGET, to which I shall never lose sight.


GLK.V @0.40
I have put a bid for 0.40, and I am not too sure if it will get filled. The valuation is simply too compelling to ignore. For nine months in FY04, it generated $0.06 earnings, $0.11 cash flow from operations, and the stock is traded at 0.40. Assuming it makes 0.03 for Q4/04 and 0.15 cash flow, which normally is its peak quarter, it is traded at 4.5X P/E and 2.7X of P/CF. Although the company’s earning has not been consistent in the past (I remembered that it failed to delivered its Q4/03, and it could happen again). Its B/V is currently at 0.52, and it is traded at 77% of its BV, a 23% discount for a profitable company. The company is in the middle of booming energy industry in Alberta, and strong drilling activities. It is going into a seasonal strong couple of quarters. However, the company has been very inconsistent in the past and for its shares to move up it must deliver the two winter quarters. Information flow is also far from satisfactory and there obvious is nobody to cover it. At this point, I would like not to put too much into these micro-cap stocks, but this one may be the exception. It got filled.