Resource Stock Update - V14 #5.6  Investing Strategies - PON  - June, 9, 2008

PO Box 1020  Owen Sound, Ontario, Canada   N4K 6H6

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Patience, Patience, Patience

That is to investing like 'location, location, location' is to real estate. Patience is a very hard
discipline to conquer when it comes to investing. Greed or fear can easily take over and investors
end up selling losing investments that they have run out of patience waiting for and jumping on a
band wagon of something else that seems to be moving or more exciting. And most often they end up
buying near the top on that band wagon and end up watching their new investment come back down and
wait for it to move back up.

I have found that the best success is to always buy when something is out of favor, or down and
patiently waiting for those stocks or sectors to take their turn moving to the upside. And when they
start moving, keep buying more until we reach our targets to take profits. Be patient and let some
of your holdings ride for the long haul. Remember, that is where the big money is made.

As I have said many times, investing is like a marathon, forget about 'get rich quick'. You need to
take your time, be patient, have a investment plan and goals. Keep your discipline and also most
important, be diversified in other investment types and sectors. Most often you can make money in
one area while another is stagnant and doing poorly.

Right now we have be doing well with our energy, oil&gas and now potash. As I have pointed out (see
link below), the precious metal stocks have been following a similar pattern as the oil&gas stocks.
A very long period of trading sideways in a channel. The oil&gas stocks have broken out very strong
to the upside and the precious metals stocks will too. It will only require a little more Patience!!

Oil&gas stocks as measured by the Toronto energy index have increased another 10% since my May 12th
update

Oil&Gas May 12   http://www.playstocks.net/RSUV1443May122008Oil.asp

If you look at the chart of the Toronto Oil&Gas index in the link above and compare it to the chart
below of the Toronto Gold index. You can see that gold stocks have been in a similar pattern,
trading sideways and within a channel. Gold stocks will break out too, just like the oil&gas stocks
have, and it will happen this year. The biggest catalysts will be when gold breaks through $1,000
again and investors realize we are no where close to a peak and there will be talk of $2,000 gold
just like we hear now of $200 oil.

Toronto Gold index chart

A careful look at the above chart and it appears there is an uptrend within the long term channel and currently we have a wedge formation, pointing to an apex in late June or early July. We could break to the upside or downside and would mean a test of the lower or upper lines of the new uptrend channel. If it breaks to the upside, it could mean a breakout from the long sideways pattern.

Now back to our patient investing. I have also said that you should not expect profits short term,
but we will get our share and should take advantage. We are up over 100% on Potash North in a matter
of just 4 days of trading, we should take part profits.

Potash North            TSXV:PON                                 Recent Price C$2.95
Entry Price $1.35                                     Opinion - take part profits

The stock has done far better in a shorter time period than I expected and just shows how hot this
sector is. A whopping 19 million shares traded on Friday and it is almost at 5 million in the first
half hour of trading today, as of this writing.

There has been a lot of institutional buying ion this stock, but I have noticed that Friday and
today so far is mostly retail. I think the stock could be getting ahead of itself and could correct.
But one never knows, maybe it goes higher for another couple days. Regardless, I think it is a good
idea to take some money off the table. We are up over 100% and should sell 1/3 or 1/2 of positions.
Don't sell it all, it might go higher short term and we want to own this stock for the long term as
well. The stock could go a lot higher, given time to develop their potash holdings.

If it does correct and come back down, we can buy back and re-establish all the original position.

http://www.potashnorth.com

http://www.stockhouse.com/comp_info.asp?symbol=PON&table=LIST

Contact :Arlen Hansen, Kin Communications Inc.
Call 604-684-6730
Toll Free: 1-866-684-6730

(c) Copyright 2008, Struther's Resource Stock Report

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