[VIDEO] MidasLetter Market Minute: Surge Energy, Orbite Aluminae, Patient Home Monitoring, Convalo Health International

James West
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Hi I’m James West with your Midas Letter Market Minute for this Monday April 27,th 2015

Surge Energy Inc (TSE:SGY) rocked higher closing at $4.29 on 6.6 million shares traded after they announced their previously disclosed Upper Shaunavon crude oil discovery in SW Saskatchewan is continuing to expand with excellent on-going delineation drilling results. Surge thinks they now have 250 million barrels of Oil in Place. They also reported the sale of the company’s Saskatchewan and Manitoba assets for $430 million

This may be one of our last reports on Surge as the company is poised to break the $1 billion market cap limit of our coverage universe.

Orbite Aluminae Inc (TSE:ORT), the long suffering pursuer of technology to create high purity alumina directly from Aluminal clays bypassing the power-intensive and hugely toxic Bayer process for producing uranium from Bauxite- managed to rank in the top 20 volume traders on the TSX, closing flat at $0.26 on volume of just under 2 million shares traded.

The once high flying TSX darling became the bedraggled harlot of the sector after some botched financings and missed milestones forced a shake-up of management that has yet to result in an visible recuperation.

Some of the gold explorers and junior producers are showing signs of life today after gold jumped $26 to close at $1,201. Could be the incremental inching to the edge of the precipice by Greece is starting to make safe haven investors take a shine to the monetary metal. But as usual, expect a sudden flurry of short contracts to flood the futures market if there is any sustained price exuberance.

In the Stupendous Reversal of Fortune category, Midas Letter Portfolio holding Patient Home Monitoring Corp. (CVE:PHM) topped the volume traders on the Venture exchange today by giving up a third straight session of ground adding another 23 cents today onto the 40 plus cents it hemorrhaged last week on a colossal 16.8 million shares traded, as the bloom comes off the rose temporarily to incite a stampede for the exits. There are no developments visible in any media to account for the mass exodus.

We believe it is just an inherent characteristic of the company’s business model of using its shares as currency to acquire companies. With the increased pace of acquisition over the last 12 months comes an increased amount of shares. So as I’ve said before, it’s a buying opportunity and the day will come when we will look back on this gift with fond memories wishing we had bought more.

Convalo Health International Inc. (CVE:CXV) whose fate is inextricably bound with that of PHM has followed suit in tandem with its bigger brother company, as both companies feed profit selling from earlier lower priced share acquisitions.

Oil was down 52 cents to end the day at $56.53, copper up another 2 cents to close at $2.78, silver outperforming gold by rising 4.6 percent to close at $16.40

That’s your Midas Letter Market Minute. I’m James West

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James West

James West

Editor and Publisher

James West founded Midas Letter in 2008 and has since been covering the best of Canadian and US small cap companies. He covers global economics, monetary policy, geopolitical evolution, political corruption, commodities, cannabis and cryptocurrencies. As an active market participant, James is not a journalist and is invariably discussing markets...
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