You might be surprised when I tell you this...
But I hardly ever read the FT.
Some might say that's ridiculous considering I worked in the City for over a decade, and now spend my time hunting down penny shares set to fly...
How do I respond to those comments?
Simple... if a small cap has made it into the national press, it's either in trouble or the price has already boomed.
In either case, I'm not interested.
Though occasionally, I will have a flick through to keep abreast of the news. And today was such a day, so you can imagine my delight when an interesting report about Egypt caught my eye...
Now, I don’t know about you but I’ve always been fascinated with ancient Egypt, particularly the magnificent pyramids coupled with the mighty power of the ancient Pharaohs.
The grandeur of these monuments cannot be appreciated until you see these places in the flesh.
It reminded me of my travels all those years ago (well, not too long ago!).
I once visited a place called Teotihuacán, just outside Mexico City, the home of the gigantic Pyramid of the Sun and the Moon.
It's actually the third largest pyramid in the world. I was standing alone on top of it as the sun rose. It was a phenomenal experience and I remember wondering at the marvel of these creations like it was yesterday.
When you see them with your own eyes you can't help but be amazed at how they were built. It really puts the construction of these landscapes into perspective.
Egypt is THE place for pyramids, but what about investing there?
Their economy has taken off over the past two years at a rate not seen since the late 1980s.
New jobs are being created addressing the class divide (which is still far too big) making inroads into their vast unemployment situation.
It’s still early days on the road to recovery, but for the brave it could work out to be extremely lucrative.
But beware there could be two potential threats harbouring progress for Egypt...
First, political upheaval could slow investment. And second, a global economic downturn would hit Egyptian exports.
Despite recent terrorist attacks tourism has been buoyant and gas production at a time of high world energy prices has helped drive record expo rtation from the country.
All that aside Egypt’s economy is doing better than it has done for years.
So how could you take advantage of this?
Well, here's a stock for your watch list...
These guys have been exploring Egypt for gold since 1995. In 2005 they were granted a 160km2 lease over the massive Sukari Hill gold project.
The company is called Centamin Egypt and they are dual listed both in the UK and Australia.
The current resource at Sukari is 7.7 million ounces, with ongoing drilling expected to substantially increase next year. They're hoping to upgrade this project to 4-5 million tonnes per year by way of a feasibility study, which is currently in progress.
They've recently announced a drilling update, where they've found high grade gold assays.
So, things could start to get quite interesting for them. They are currently priced at 32.5p, and could put an exotic touch in your portfolio.
But again, be warned!
As with all mining stocks, until (and if) they actually discover something, there probably won’t be a great deal of activity in the share price.
It’s always a good idea to diversify your portfolio, and there aren’t many ways at present to get exposure to Egypt from the AIM market.
But with things picking up in the country, who knows what opportunities may arise in 2007.
Until next time,
Melissa Carroll
for The Penny Sleuth
P.S. If you want to follow the tales of a small company investor, and uncover the hidden gems of the stock market, then sign up for the Penny Sleuth e-letter. It won’t cost you a penny…
