1. e-mail: debbie_lewis@canaccord.com e-mail: david_pescod@canaccord.com May 7, 2009
S&P/TSX COMPOSITE $9971.39 -172.04
PACIFIC RUBIALES (T-PRE) $6.29 -0.15
GRAN TIERRA ENERGY (T-GTE) $3.18 +0.04
Okay, enough of this talk...should one sell in May and go
away? Is the market rally just a rally in a bear market?
Enough of that, maybe we’ve had some hand holding from
the best possible source to not be so worried.
Peter Brown is the chairman and founder of Canaccord
Capital and it has been amazing to watch him build Canada’s
largest independent brokerage house, both watching from
outside the company and now (for last five or six years) from
the inside. His personal sense of history (40 years in the
business) gives him a little bit of insight that many of us are
lacking.
Over the last while, Peter Brown has written, “Markets pro-
duced very sharp rallies following severe corrections. You
have all witnessed one in recent weeks which has produced
one of the really great trading opportunities without a great
deal of risk and a lot of it in quality stocks many with yields
Pacific Rubiales
we have not seen in years. I am sad to say that history re-
peats itself and so many are caught frozen, like deer in the
headlights, and have not participated. A bear market as se-
vere as the one we just experienced is both a disaster and an
opportunity-too many experienced the disaster and are miss-
ing a great opportunity.”
He continues, “Almost every substantial correction is V
shaped and therefore presents huge opportunities for those
with the presence of mind to take advantage of the values the
downturn offers.” He adds, “For sure every investor, both the
conservative and the speculator, was hurt in this record one
year decline. Equally for sure is you and they cannot restore
capital by not participating in the recovery.”
Yesterday, in a “Peter Uncensored” conference call, he
was asked repeatedly the same questions. Should one sell in
May and go away or is this still just a rally in a bear market?
Gran Tierra Energy
The chart at the upper left shows just how terrible that
market crash was—one of the biggest in history and while the
rally we’ve seen in the last two months has been one of the
biggest rallies in history, it pales in comparison to the crash.
As far as to the question of will there be a correction of the
typical sell in May and go away? Peter suggests that “No,
because only about one in four retail investors participated
in the rally so far, there are lots of those that are looking
forward to any corrections to re-enter the market and would
provide buying support.” So there will be corrections, but
they will probably be shorter and less than extreme.

2. David Pescod 780-408-1750 Debbie Lewis 780-408-1748 Fax: 780-408-1501 Page 2
Looking forward, Mr. Brown is a little concerned about inflation down the road and figures when the market re-
sumes, it will be a little more rational than in the past.
As far as stock picks, he goes with some names such as Pacific Rubiales and Gran Tierra Energy in oil and gas; Red
Back Mining (RBI) and Dorato Resources (DRI) for mining and TransCanada Corp. (TRP) in utilities.
HERITAGE OIL (T-HOC) $10.37 -0.87
WESTERNZAGROS RES. (V-WZR) $1.00 +0.01
Heritage Oil
Yesterday was a generous day on the markets as we
saw the TSX Composite head over 10,000, a barrier some
were wondering if we would see in the next ten years or
not, but one of the leading stocks of the day—even on a
good day—was Heritage Oil and with good reason.
“Heritage announced positive preliminary results from
its Miran West-1 discovery in Kurdistan” analyst Terry
Peters of Canaccord writes and continues “while extended
flow test are still being conducted, Heritage Oil indicated
that the structure in its block is estimated to contain be-
tween 2.3 billion and 4.2 billion barrels of oil in place.”
Let’s say that again...somewhere between two and four
billion barrels of oil. Ah yes...and here’s good folks in
Alberta trying to find a pool of 2 million or 10 million bar-
rels and in Kurdistan, you are in a totally different league.
For those that are geographically challenged though,
Kurdistan is...do you know? Yes, that’s an area of Iraq
folks and that’s a rather rough place to operate in these
days. What infrastructure there is, doesn’t necessarily
WesternZagros Res.
always work and to get it built, poses extreme difficulties.
With that news, Heritage had a huge move yesterday of
35% and it’s not a very widely-followed stock. On the
other hand, WesternZagros is a widely-followed stock and
with huge land holdings in the area that will be drilled
shortly, they did huge volume yesterday of roughly 6 1/2
million shares and up 25% on the day.
Zagros, along with partner Talisman, are expected to
spud their exploration well (Kurdamir-1) later this month
and shareholders would be more than a little happy if they
came up with anything anywhere close to what Heritage
has just discovered.
For those that would like the background report on
WesternZagros, e-mail Debbie at deb-
bie_lewis@canaccord.com.
Disclosure: Pacific Rubiales, Gran Tierra Energy, Red Back Mining and TransCanada Corp: Canaccord Capital covers these stocks and
has a Buy rating on them. (Buy: The stock is expected to generate risk-adjusted returns of over 10% during the next 12 months.)
Heritage Oil Corporation and WesternZagros Resources: Canaccord Capital covers these stocks and has a Speculative Buy rating on
them. (Speculative buy: Stocks bear significantly higher risk that typically cannot be valued by normal fundamental criteria. Investments in the
stock may result in material loss.)
DEB’S DITTY:
Times are so tough…
that Bill Gates was seen scratching lottery tickets.
To receive the Late Edition and be on our daily circulation simply e-mail Debbie at
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