Canadian stocks rated by Iain Fraser

More trouble in the Middle East

The Allies, led by the U.S., continue to slug it out in a hopeless case in Iraq. Now, Iran has 30 days to comply with the UN rules on nuclear policy;  this too, is likely to become a mess.

In our view there is a third source of trouble; Hamas, who want to destroy Israel. The wall will work, so they can't go to Israel on foot. But there is the sea and the air. Our guess is that they will attack with projectiles; bombs; rockets; and missiles. It is unlikely that Hamas is going to stay idle. Our guess is that sometime this year there will be new, and big trouble, in the Middle East; and the price of oil will break out of the $70.00 range.

The wall being built in Israel

The election in Israel this week was mainly about the wall; and the wall won. There is great controversy in Israel, and throughout the world, on the building of the 30 feet high wall between Palestine and Israel.

Our view is that of long established English common law that a person has the right to the quiet enjoyment of his own property. The same principle applies to countries.

Is GM stuck in the mud?

It is doubtful that GM will ba able to match Toyoto's lineup; Echo; Corolla: Camry; Lexus. We are all rooting for GM but it may be too late. Ford and GM should have reacted to the Japaneese car threat 20 years ago but somehow just looked the other way.

Crude oil.

The chart for light crude has two recent tops at about $65.20 and it is breaking out today; the current price is $65.75.

We have five Canadian oil stocks in our list of 21 undervalued Canadian stocks.

Of course all five oil stocks are nicely up as this is written.

If you would like to get the list check our website; www. fraser-ratings.com

Crude oil

The crude inventories are high and yet the price of crude stays in the low to mid sixties.

One necessary observation is that maybe the crude inventories are high just because when there is a possible shortage, of almost anything, hoarding starts.

Also, Iraq and Iran, could cause major trouble at any time.

The result of the above is that, on the charts, the Canadian oil stocks look like they want to go up.