Aurizon Mines Ltd.(USA) (AZK)

Why buy gold stocks before earnings? Because you could buy gold, in the spring of 2007, for 650 dollars an ounze; or oil for 65 dollars a barrel - take your pick. Then, in the summer of 2008, you could sell your gold for $950 an ounze; or your oil for $140.

Oil out performed gold, during this period, but mining stocks held their own. Then came the fall of 2008, when the inflated bubbles burst. Gold fell about 30%, while oil came down around 70%. Gold stocks fell to the oil levels, or in other words, they fell to 350 dollar gold. So why did gold not fall more?

Folks - gold is a good deflation play, but fares far better with inflation. Oil is a good inflation play, during a Boom, but gold will out perform oil if inflation heats back up. Why? Because we're now living in a different world. No more Boom! The Boom left the station with the Chinese Olympics.

What's your best deflation play, after the dust settles? Miners! Why? Because they fell to 350 gold, due to the fact that they had paid high dollar for energy and machinery costs, and nobody knowed how far gold would fall. That said; gold only fell to around 700 an ounze, before quickly recouping it's loss. In other words; the miners are about to turn in great numbers, with much better guidance.

The miners will take off, and bring gold up with them. Once gold settles above the 1000 dollar mark - it's off to the races, as one feeds off the other. Don't listen to some idiot spouting wave theories, and leave you holding a bag.

Large land position and good exloration team. Cash flow is substantial. AZK operates in friendly jurisdiction. Management is not greedy.