Casey Research: The devil is in the details

The way in which Casey Research goes about its business up all over the place, for example in the little details that give a window into the niggling, petty mindset of its overpaid and underqualified staff.

Take for example last week, when Louis 'Lobito' James published his monthly festival of laughs, The International Speculator. The September edition hit the world midday September 1st and featured a stock (I'm not going to say which one, as even a toerag such as I has a few scruples left) which was trading at $3.10 at the time. However, in his whizzdumb, Lobito decided to mark his opening price down at $2.87. Here's the 48 hour chart of said stock last week that shows it got a decent bounce Friday (with the rest of the sector) and finished at $3.30.

Therefore, Lobito's new pick (stopped clocks and all that) is now, Tuesday 6th Sept one hour before the opening bell, up 6.1%.

But Louis Little Wolf James will claim that he's up 15.0% on the deal, because he chose an entirely fictitious starting price that not one of his readers could have possibly bought near to, let alone at. This will not stop him from bragging about his bullshit percentage gain further down the line, though.

And think this is an isolated case? Think again, as this Casey Research fiction on entry pricers has been commented to your author by plenty of their readership and they all feel they're getting hoodwinked. It's not about a teeny tiny case of  the practicals of this basic dishonesty at Casey Research, it's about the mindset that drives it.

How junior mining analysts admit mistakes

1) The method used by honest, mature adults that understand that you can't possibly pick 100% winners all the time.

"I'm sorry, it was a bad pick. It's time to admit that and take the loss, heavy though it might be."

2) The method used by bullshit pumpers and liars who think far too much of themselves to be of any use to their client base:

"We see this temporary downturn as an excellent opportunity to average down and pick up some great priced etc etc blah blah BS BS snooze....."

As East Asia Minerals (EAS.v) is now 75% down (wow! now that's a loser) from the time Louis James of Casey Research recommended the stock as a buy just four months ago (wow! now that's quick), we wait with bated breath to see which method he uses in the next edition of his International Speculator monthly newsletter, coming 1st week of September. 

Watch this space.

Accountability at Casey Research and East Asia Minerals (EAS.v)

We call to account Casey Research because of their constant, unadulterated bullshit claims of "100% winning pick" ratios, neverfail stock selection prowess and more soft soap crap that anyone with a grip on reality could possibly stomach.

Let's be clear: If Casey Research were honest about their true track record, the series of posts here at IKN would not exist. Au contraire, they are bullshit liars, which is why we highlight them so often.

What you're looking at is a stock pick, East Asia Minerals (EAS.v) that has lost 73.4% in the space of four months and it's one that Louis James would rather sweep under the carpet. He's shown no signs of remorse about it either and just keeps calling buy, all the way down. Be a man for once and reap what you sow, epicfail Lobito.

How to make a small fortune in junior mining stocks

1) Start with a large fortune.

2) Follow Louis James's advice over at Casey Research.

3) Wait three months.

I mean, if Lobito thought East Asia (EAS.v) was a bargain at $5, he should be buying with both hands today, no? And getting you to buy, right? Beats me why volume is so low today, what with Lobito pumping this dog yet again yesterday....

Smear tactics

Brent Cook appeared on BNN TV today and talked about a subject we've been following fairly closely here recently, namely the "smearing" of drill results. That's the way the BS end of the junior mining world will try to make out they have more economic rock than is actually the case and in the process pull the wool over sheep eyes (hopefully, that category doesn't include you, kind reader).

Anyway, it's good instructive stuff and Cook even uses one of our fave smear-merchants, the Casey Research pumped Bayfield Ventures (BYV.v), as one of his examples. Go see the video on this link right here and learn a bit more than Lobito would want you to know.

UPDATE: Oh, too much fun. BYV.v replies in an NR. Handbags at dawn, ladies.

Dear Lobito: Are we allowed to stop buying East Asia Minerals (EAS.v) yet?

Or is the July 2011 Casey Research advice still good? After all you did say that:

"We believe the first pass resource will grow rapidly and continue to see the recent sell-off as an opportunity."

Or pray tell, Mr. James, does the fact that the Pres/CEO of EAS.v, Michael Hawkins, has resigned this morning change anything?

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 26, 2011) - East Asia Minerals Corporation (TSX VENTURE:EAS - News) announces changes to its management structure, effective immediately. Michael Hawkins has resigned as CEO-President-Director of East Asia, and is replaced by yada yada continues here

Mind you, it's hardly important, is it Lobito? After all it's only a 56% loss 57.7% loss (updated after the bell) in the three months that you've been reco'ing this stock and these minor details are best forgotten round Casey Research, aren't they? So just take the advice of your controller at Casey, deny everything and never apologize. It's the American Way after all.

Casey Research pump jobs and smearing: How Gold Bullion Development Corp (GBB.v) and Bayfield Ventures (BYV.v) use the same BS

We've done quite a lot to highlight the case of smearing over at Bayfield Ventures (BYV.v) recently, with this post one of many. So when the following mail plopped into your author's mailbox this morning, it seemed best to share with a wider audience:

Hi Otto
 
Just read your blog entry about the BYV smearing issue. About time the BCSC reacts.
 
The BCSC should really look into another Casey pump job - GBB, Gold Bullion Development Corp.
 
Eye through some of their drill results and boy do they know how to make worthless rock look okay-ish.
 
Case in point, drill hole GR-10-173 - 80m @ 1.36 g/t (from 253 m to 323m depth). But take away that 1 m intercept at 322m depth grading 89.83 g/t and you're left with a worthless hole.
 
GR-11-200
GR-10-97
and lots of others.
 
Especially of interest should be the following release, considering hole GR-10-55 where GBB doesn't seem to report the short, high grade interval(s):
 
http://goldbulliondevelopmentcorp.com/html-pages/downloads/news-releases/2010-11-09PressReleaselogo.pdf
 
Maybe you could highlight this on your blog?
 
Best regards

Yes indeed kind mailer, we can highlight this on the blog. 

So in an amazing turn of events, we have two companies, Bayfield Ventures (BYV.v) and Gold Bullion Development Corp (GBB.v), that use the same technique of smearing to make mediocre drilling results look good. And it just so happens that both these stocks have been pumped like crazy to a naïve world by the bullshit hype merchant Louis James of Casey Research (check here and here for the background to the Casey pumpjobs on GBB.v, noting how first Lobito tips off the premium customers of Casey and then gets the lower-level higher volume Intl Spec subscribers into the stock later...another scam laden modus operandi at the little shop of horrors).

So BCSC OSC and all your merry friends, you've clamped down on Bayfield's bullshit and maybe just maybe it's time to take a good look at this other operation doing the same thing over at GBB.v? And while you're at it, if you really want to clean up the street it really is about time you looked into the common denominator of these scams. If you need a hint, they work out of Vancouver and their boss just loves Argentine real estate.

East West Petroleum (EW.v): Give David Sidoo credit, at least he's consistent

For your general edification and entertainment, let's catch up on how the Marin Katusa / Casey Research led scam pump East West Resources (EW.v) has been doing. We've featured it on a number of occasions at this humble corner of cyberspace (here and here tend to be ongoing popular posts) but today we're homing in on Executive Chairman David Sidoo's contribution to the cause...which so far has basically been throwing his own money down the Katusa Krush™ black hole:

(click to enlarge with sharper focus too)

It's incredible to think that installing a failed restauranteur as head guy of an Oil & Gas junior hasn't paid off so far...can't think why that should be. Hey David, you know this old joke?

Q: What the best way to make a small fortune in the stock market?

A: Start with a large fortune, then.....

FYI, the next Casey Research pump and dump scam is using PC Gold (PKL.to)

Lobito James reco'd PKL.to to his A-List clients on Friday, so it's odds on that they'll get to sell to the larger International Speculator subs list when Lobito pumps this dog to them next month.

The day the scamrunning scumballs at Casey Research are closed down and their immoral practices stopped will be a good day for market transparency. DYODD.

Let's all laugh at the poor people...

...who buy Casey Research stock picks.

As Casey Research has an extremely selective memory when it comes to its track record, this chart is offered up  as evidence of the the snake oil salespeople's true abilities. We could have gone for Ram Power (RPG'to), that excellent Marin Scumball Katusa "top pick" of course, but let's keep it topical and go for the most recent Casey recos.

And while we're on the subject of Lobito those still left in his other recent underperforming dogpick, Gold Bullion Development Corp (GBB.v), would be wise to exit before the Vancouver junior mining conference and bunfest this weekend. Just sayin'.

UPDATE: And it just gets better. Today Lobito has called "buy second tranche" on EAS.v and notes that although the recent 43-101 resource was a total PoS and he's in the hole to the tune of 30% he can only "see an opportunity".  So pathetic it's almost funny, now all we need to watch is the initial price switcheroo that Casey Research constantly uses to scam its clients. Will they dare to shift the "initial price" to today's $3.57 in future episodes? Watch this space.....

Don't worry, it could be worse...

... you might have recommended East Asia Minerals (EAS.v) to your thousands of loyal subscribers just last week before the resource count this morning blew the stock to smithereens. 

I mean, it takes a special kind of talent to wait on the sidelines for all this time and then jump in at the worst possible moment, a talent that you too, kind and gentle IKN reader, can find in Louis 'Lobito' James of Casey Research. Hey Lobito, I'm still trying to decide which line out of your pump piece from last week I liked the best. I'm down to either...

"... its flagship Miwah project in Indonesia... could well be on its way to a monster gold discovery in the tens of millions of ounces."

 ...or perhaps:

"....it’s the first 43-101-compliant resource estimate that we expect to really drive the market to have another look at Miwah."

Tough choice, but I think I'm going to plump for that second one of yours as the 43-101 resource number today surely did make the market have another look...right before the market hit the panic sell button and thanked the Lord there was a bunch of last minute bagholders on board thanks to you, Lobito.  Anyway, thanks for the guffaws dude. I love comic writing, especially when the writer thinks he's being serious.

How Casey Research fakes its track record, part two

We've already noted one of the slimeball techniques used by the unaccountable Casey Research to bullshit itself and fake its track record in this previous post, now here comes another example of their lies and deception. The following mail was recently received from reader "R", who wishes to remain anonymous being a subscriber of Casey Research's  'International Speculator' (IS) service.

In the following mail, R explains just how Casey's IS editor and liar in chief Louis James fakes his track record. At this point, it's best to make clear that I have edited R's original mail in order to strip it of any source of IS and brushed up the script a tad. I then passed the edited version of R's mail back and have received permission from R to post it as seen. In other words what you're about to read is 100% the message in R's mail.  Read on.

Hi Otto,

I don´t necessarily have a negative stance towards Casey, being an International Speculator (IS) subscriber for a year or so now. I'm a newbie everywhere in mining world and can´t judge. But here´s something that makes me angry. For a few weeks I lost track a bit of their recommends and so just recently I noticed a new IS recommendation for Pretium Resources, PVG.to. So I checked it out on the Casey site:

"First Recommended 2011-01-05  at $6.20"

So I went to the January 2011 edition of IS but found nothing. On further checking of my reports I found that it's only featured in the February 2011 IS. Here's what was written in the Feb 2011 edition:

"Bob has leapt back onto the stage, buying these gold assets from SSO and putting them into a new gold company: Pretium.

We spoke with Bob about this last month, after the January issue of IS was already out the door, and became convinced that Pretium is going to add a lot of value in the coming months and going forward. So we put out the word to our alert subscribers, who were able to take advantage of the recent fluctuation down to almost C$6.00. If this bothers you, by all means, take a pass, but note that with gold still showing weakness, it’s possible you could get filled at similar prices if you set your sights on them and wait for the market to come to you."

That stinks in various ways. First, they would have liked to reco it to IS subs but unfortunately the letter was already sent out. Subs can't be notified by email can they? So, sorry sorry had to reco it only to the alert subs.

Second, their latest scheme is: oh boo hoo if you don't like buying after alert subs have bought you can always pass on that pick

But thirdly and that ´s what causes my anger: These buggers have the nerve to list the pick as recommended first in Jan 2011 at $6.20! That's the info in my IS account and it's not true because I was reco'd in Feb 2011. The Feb IS came out on Feb 7th and Pretium was lowest 8 CAD and generally 8.50 CAD

So later they claim a performance that has not at all happened for IS subscribers. According to them, PVG.to today at $8.80 is a 42% gain calculating with start price of 6.20 CAD, while actually it has a gain of 10% at best from $8.00 and virtually nothing from $8.50.

Here is where I feel ridiculed. And sure, Casey will be all "sorry for the error" if it gets revealed. I might write to Casey but honestly, their communication politics is a bit like you never get an answer. I appreciate that you provide market transparency and track dubious behavior so I send it to you, please respect my anonymity.

Kind regards,

R

IKN Back. Personally, I think R is being far too kind and forgiving to Lobito and his band of swindlers and one of these fine days they're going to get a well-deserved lawsuit slapped on their lying asses. But that's just me. DYODD, dudettes and dudes.

another day's mailbag

You guys keep me amused via my mailbox, and for that I thank you. Here's an example from "regular reader" this morning:

Just in case you are tempted to partake in a bit of self-flagellation on this Easter weekend, I recommend you listen to this instead.

http://www.financialsense.com/financial-sense-newshour/guest-expert/2011/04/21/marin-katusa/americas-looming-energy-disaster

It should do the trick...

Thanks for that, RR (you know who you are).

Meanwhile, we note that Marin's dead horse energy play Ram Power (RPG.to) got flogged today:

Inquiring minds wonder if there two occurrences are related? And said minds also wonder if CBM Asia (TCF.v) got its own pumperooney from the morally bereft p&d scamster? Doubt that, cos it's just sooooo 2010, innit Marin?

UPDATE: Stunningly good feedback from reader TK:

I got a chuckle when I tried to open the Katusa link RR sent you in RealPlayer, and this message popped up (I’m not kidding!): “This clip cannot be played. It contains unexpected data and may be corrupt.”

 

Even RealPlayer has figured Katusa out…?

Reasons why Ram Power (RPG.to) exists

Which one sounds the closest to you, kind and gentle reader?

1) To provide Rick Rule with another "heads i win tails you lose" vehicle.
2) To show Marin Katusa as the bullshit know-nothing self-serving pumper that he is.
3) To enhance Casey Research's growing reputation as a house of scams and bullshit promos.
4) To separate fools from their money in the time-honoured Canadian market tradition.
5) To make Ross Beaty's Magma Energy (MXY.to) look like a strong-performing stock.
6) To provide electricity supply to Nicaragua (and yeah, before you write in I know this one is pushing reality a little too far)
7) To help pay for the closure costs of the Lumiere and DB Bistro Moderne restaurants.

You be the judge!

Bayfield Ventures (BYV.v) and Brent Cook's drill interval calculator (from IKN94)

By popular demand (seriously, I've been told that this piece needs a blog-airing by subbers) here's an update on Bayfield Ventures (BYV.v), the bullshit scam run by the shady management team, ridden for his own gains by Mr Self-Service himself Marin Katusa of Casey Research and...utter surprise...pumped as TheNextBigThing by LouisLobitoJames of Casey Research. So rather than do any real work today here's what was written on the subject for IKN94 and published on Feb 20th (y'see the blog stopped for the vacay, but the Subscriber weeklies kept on rolling). Anyway, here's the piece on BYV.v and what's written below applies equally to the NR it came out with on Monday evening, as it's just the same vein drilled over and over again. Bulk mining my ass. Enjoy.

Bayfield Ventures (BYV.v) and Brent Cook’s drill interval calculator

We’ve mentioned it before, it’s got a permanent link over at the blog but today I want to take a few more lines to extol the virtues of using the Brent Cook/Corebox Drill Interval Calculator (find your way there this link), a most useful tool that we non-qualified geology laypeople* can use to get a better handle on the drill returns laid out in a company news release and it greatly helps in sorting out the wheat from the chaff.

So let’s take an example of chaff to show how it works, the company in question being the overhyped and underendowed Bayfield Ventures (BYV.v) which is trying to make out that its neighbour play to Rainy River’s (RR.v) hot Ontario property is something that RR.v will have to buy out to make the area into an open pit gold mine. It’s total piffle, but as that’s never stopped a junior miner from promoting itself here we are.

What we’ve had from BYV from its ‘Burns Block’ property so far are intersections of a high grading vein or two that have been presented as a much wider mineralized body. This practice of ‘smearing’ a high grade intersection over a wider area is designed to give the impression that there’s a lot more economically viable rock under the ground than is actually the case and it’s just this type of sleight of hand that the Cook/Corebox calculator is good at rooting out. Here’s the cutting of last Thursday’s NR detailing the core returns:

What we see is that the hole in question, RR11-1, is presented as having intersected 116.6m of 1.05g/t gold that started at a downhole depth of 509.5m and finished at 626.1m. We then see that this intersection included three higher grading areas, in particular two parts of the total that were high grading stuff (0.7m of 21.6g/t gold and an eyecatching 2.2m 33.13g/t gold). Those kind of returns point to very nice rock of course, but if it’s from a simple vein system the absolute amount of economic gold contained is always going to be limited to the vein itself and ounces contained aren’t so likely to impress. But as we see, BYV is offering up the intersection as being a big, wide and far more easily and economically mineable 116m wide.

What the Cook/Corebox calculator does is show us the truth of the matter and here’s how it works in this example case. Go over to the Corebox website and in the top line of the box presented, plug in the length and the grade of the big interval. In this case the length is 116m and the grade is 1.05g/t. Next, in the lines of the box that follow add in any of the “including” parts you see fit from the NR. In our case we’re concentrating on the two high grade parts (0.7m at 21.6g/t and 2.2m at 33.13g/t) that BYV announced. Once all your info is in, hit enter for the last time and read off the “residual” at the bottom. This is the solution to the question and shows a) how much length is left after the inclusions are taken away and b) how much gold per tonne is in the rest of the drillcore.

In the case of BYV’s R11-1 core, once you take out the high grade parts you’re left with 113m grading 0.299g/t. Believe me, nobody cares about that grade of gold at that depth as it would be far too expensive to haul it to the surface, as even with gold at $1400/oz and 100% recoveries that rock is worth less than $14 a tonne.

So what BYV has at Burns is a decent but deep-lying vein. But it’s one that it continues to drill at differing depths to make for a flashy news release every now and again and it’s also one that’s being used to make its case for being an indispensible part of its neighbour’s plan to build an open pit gold mine. Yeah, right.

Oh look, somebody decided to bid up and buy BYV Weds AM before the Thursday AM NR. Sheer coincidence, of course. We avoid.

IKN March 2nd back. Since that week BYV has dropped back to the low 80s again, which shouldn't come as any surprise. DYODD, dude.

Marin Katusa is leaving the building

Looks like our old buddypalmucker (virtual chock of shoulder) Marin Katusa has decided to stop being in the direct front line of the frontrunning Casey scams and is about to retire from the actual writing of his bullshit pumps. This mail (slightly redacted for obvious reasons) was received by your author from not just one but four sources on Monday and Tuesday (seems other people care about what's going on round at your shop Duggie....and the name of one of the senders even surprised me, which takes some doing these days when the subject is Casey Research, sadly).

From: Gwen Preston [mailto:gwen AT caseyresearch.com]
Sent: Monday, January 17, 2011XXXXX
To: gwen (AT) caseyresearch.com
Subject: New beginnings

Hi everyone,

Just a quick note to let you know that I have left the Northern Miner and moved to work with Marin Katusa at Casey Research. I will gradually be taking over Marin's energy newsletters.

I spent 3.5 great years with the Miner and very much enjoyed meeting, traveling, and working with you all. I hope we continue to cross paths in the future!

My new email is gwen AT caseyresearch.com. My phone is 77X XXXXXXX 3.

Cheers,

Gwen

So Casey gets a new writer for the Energy Letter, Marin Katusa has time to train her up to that 'special' way of presenting 'facts' they use round there and once that's all done Marin gets to spend more time with his new BFF Ricky R. And they all lived happily ever after out of jail and yes we love a happy ending at IKN.

The easiest way to make money in junior oil and gas plays...

...isn't to study all the charts out there, looking for advantages in RSIs and bollybands and suchlike on hundreds upon hundreds of potential plays.

It isn't doing deep DD fundamental analysis about the companies and knowing more than the next guy about what dozens of companies are doing and where they're going at any given moment.

It isn't about being expert on the world markets for oil, for natgas for all those type of things.

Nope, there's a much easier way of making money in junior O&G. All you have to do is know when Marin Katusa is appearing next on BNN Television.

More on East West Petroleum (EW.v) and its self-fulfilling pump'n'dump that benefits scamster Marin and his pally pals far more than anyone else right here.

Marin Katusa's Modus Operandi and East West Petroleum (EW.v)

 East West Petroleum (EW.v) 12 month chart: What rhymes with pump, Mr. Rule?

Your humble scribe doesn't pay much attention to the oil & gas world, what with being all fixated and that on hard rock mining, so let's start out by stating clearly that if it weren't for a headsup from reader 'RK' this post wouldn't exist. A few days ago RK wrote in to note that a new O&G exploration company, East West Petroleum (EW.v), was being pumped hard by Marin Katusa, the utter scumbag working at Casey Research who lives to line his own back pocket at the expense of others. 

RK noticed recent articles and also Katusa's blind pumping of this very early stage risky stock on a BNN TV appearance too...and then when he checked out the company website noticed that one of the guys recently taken on board was none other than Marc Bustin.

Why is this significant? Well, as we noted in this post on Katusa's backhanded fun'n'games recently, Katusa and Bustin are already bosom buddies. For one, Bustin also works at Casey Research. For another, Bustin is a main cog in the failed CBM Asia O&G explorer (TCF.v) that Katusa pumped incessantly back in 2009, getting his sheep to buy in on over-pumped expectations only for reality to set in later and the stock to crash hard (it's still crashed today, despite Katusa's insistance a few months ago that it's still a double). And while we're at it, let's check the script Katusa was reading from in September 2009 on that small O&G play:

".....my top pick for an investment for exposure to the Asian gas market is CBM Asia Development Corp. We think that this stock has the potential of being well over $1.00.......CBM Asia is definitely a company your readers will want to look into and think about owning, I own a lot of it, and will be buying a lot more soon"

That remarkably similar to the script now being used for the current Katusa small O&G play EW.v pump, methinks.. Just change the geography, extract CBM and insert oil and bingo. As for the TCF.v stock price since then....

No further comment needed.

But mainly we're interested in the Katusa/Bustin connection due to a little back-office outfit known as KBH Capital Corp, a company run by Marin Katusa, Marc Bustin and another Casey Research employee Joe Hung. These three bosom buddies made themselves rich at the expense of other via KBH Capital by pumping merry hell out of Bayfield Resources (BYV.v) then KBH received very juicy finder's fees when selling a whole bunch of new shares at $1.40 to an unsuspecting crowd (BYV now trades around 40% lower than that figure, though to be fair we need to point out the flow through nature of the $1.40 shares Katusa flogged that come with certain tax advantages).

Anyway, back to East West Petroleum (EW.v). On a quick look at the Katusa pump-job and then a quick check of the EW.v website, your humble scribe's interest was piqued. Yes indeed, with Katusa's pally pal Bustin installed as an officer and then Katusa giving it the full-on promo to anyone who'd listen (including the helpless sheep who are silly enough to buy his 'Casey Energy Report') the scamster's modus operandi was showing. And so a quick check of the deeper filing stuff and......

EAST WEST PETROLEUM CORP. ("EW")
(formerly East West Petroleum Corp. ("EW.H"))
BULLETIN TYPE: Change of Business, Private Placement-Non-Brokered,
Graduation from NEX to TSX Venture, Symbol Change
BULLETIN DATE: September 30, 2010

NEX Company

TSX Venture Exchange has accepted for filing East West Petroleum Corp.'s
(the 'Company') Change of Business (the 'COB') and related transactions, all
as principally described in its filing statement dated September 15, 2010 (the
'Filing Statement'). The COB includes the following matters, all of which have
been accepted by the Exchange.

1. Acquisition of interest in the Carbon Property

Pursuant to an agreement dated September 15, 2010 between the Company and
Sphere Energy Corp. ("Sphere"), the Company will acquire Sphere's interest in
the Carbon Property in Alberta for $1,125,000.
The Carbon Property is located approximately 50 miles northeast of
Calgary, Alberta. Sphere's working interests in the Property range from 4.8%
to 20% in four producing oil wells and thirteen gas wells (eight flowing coal
bed methane gas). The wells are producing from the Horseshoe Canyon, Basal
Belly River, Belly River, Viking, Glauconitic and Ellerslie formations.
The Exchange has been advised that the Company's acquisition of the Carbon
Property has received shareholder approval and has been completed. For
additional information refer to the Filing Statement available under the
Company's profile on SEDAR.

2. Private Placement-Non-Brokered

TSX Venture Exchange has accepted for filing documentation with respect to
a Non-Brokered Private Placement announced August 18, 2010 and September 14,
2010:

Number of Shares: 13,600,000 shares

Purchase Price: $0.25 per share

Warrants: 13,600,000 share purchase warrants to purchase
13,600,000 shares

Warrant Exercise Price: $0.34 for a two year period

Number of Placees: 66 placees

Insider/Pro Group Participation:

Insider equals Y/
Name ProGroup equals P/ No. of Shares

John Tognetti P 800,000
David Lyall P 700,000
Robert Sali P 800,000
Marko Ferenc P 50,000
Janis Parmar P 20,000
Lori Pinkowski P 70,000
David Shepherd P 50,000
David Elliott P 200,000
Wendie Elliott P 100,000
Grant Caudwell P 50,000
Raymond Tsang P 10,000
Andrew Williams P 100,000
Colin Hoodspith P 60,000
Warren Robinson P 100,000
Herb Dhaliwal Y 100,000
David Sidoo Y 40,000
Maureen Leykland
(James Harris) Y 100,000
JLHLC Holdings Inc. Y 20,000

Finders' Fees: KBH Capital Corp. - $115,000 and 460,000
warrants that are exercisable at $0.25 per share for a 36 month period.

Shane Lowry. - $124,000 and 496,000 warrants
that are exercisable at $0.25 per share for a 36
month period.

Global Market Development LLC - $18,750 and
75,000 warrants that are exercisable into common
shares at $0.25 per share for a 36 month period.

3. Graduation from NEX to TSX Venture

The Company has met the requirements to be listed as a TSX Venture Tier 2
Company. Therefore, effective Friday, October 1, 2010, the Company's listing
will transfer from NEX to TSX Venture, the Company's Tier classification will
change from NEX to Tier 2 and the Filing and Service Office will change from
NEX to Vancouver.

The Company is classified as an 'Oil and Gas' company.

Capitalization: Unlimited shares with no par value of which
45,525,306 shares are issued and outstanding
Escrow: 5,616,750 shares, 1,000,000 warrants and
1,850,000 stock options subject to a
36 month staged escrow release

Transfer Agent: Computershare Trust Company of Canada.
Trading Symbol: EW (new)
CUSIP Number: 27580T 10 7 (UNCHANGED)

...yes indeed, it IS the same old story! Back in September, EW.v ran a placement financing to raise $3.4m and OH LOOK AT THAT, KBH CAPITAL MADE THEMSELVES A WHOLE STACK OF MONEY as not only did Katusa, Bustin and Hung pocket $115,000 in cash (that helps pay the lunch bills) but they were also granted 460,000 warrants priced at 25c. So with Katusa pumping away since then and getting the retail saps on board, those warrants are now worth a cool $621,000 and about to come out of escrow, too.

And a very merry Christmas to you too, Marin!

Isn't it funny how lapse and forgetful Marin Katusa is when it comes to the moment to disclose on a recommended company? He does say "he holds shares", but he doesn't mention about the intimate involvement with the company's management team, he forgets his über-close ties with previous rounds of financing, he doesn't tell a soul just how much he wants that stock to go up before his warrants come out of escrow. On other words, just the same old Katusa modus operandi that's schemed to line his own pockets at the expense of others (just ask any holder of TCF.v how they feel about Katusa's pump jobs...or ask those he got into BYV.v at $1.40). So let's recap on this clear pattern, the Katusa M.O:

1) Katusa gets in on CBM Asia (TCF.v), Marc Bustin connected as member of the management team, shares placed, Katusa secures juicy finder's fees, Katusa pumps stock, stock subsequently disappoints and sells off.

2) Katusa gets in on Bayfield Resources (BYV.v), Marc Bustin connected via KBH Capital, shares placed, KBH secures juicy finder's fees, Katusa pumps stock, stock subsequently disappoints and sells off.

3) Katusa gets in on East West Petroleum (EW.v), Marc Bustin on board via KBH Capital and a member of the management team, shares placed, KBH secures juicy finder's fees, Katusa pumps stock..........and have a guess as to what your humble scribe thinks will happen next?

BUT WAIT! THERE'S MORE! Right now (and on the back of all this Katusa-generated hype that's seemingly little but self-service and very murkily disclosed) EW.v is running another, altogether much bigger $26.5m round of share placement financing that supposed to close on December 22nd. What with Katusa pumping away like mad on EW.v,  kinda suspicious given this placement's timing, wouldn't it be an absolutely shocking surprise to find out that KBH Capital, the company that benefits not only Katusa but a member of EW.v's very own management team in a direct manner, has made good yet again on this deal via extra juicy finder's fees and warrants issuances when this latest share placement closes next week?

IKN strongly suggests that you avoid these men if seen walking the streets of Vancouver:

Marin Katusa, Senior Market Strategist, Casey Research.

Marc Bustin, Senior Research, Unconventional Oil and Gas, Casey Research.

Joe Hung, Research Analyst, Casey Research.

Casey Research frontruns its own clients AGAIN

Really, this is getting beyond a joke and it's about time that somebody with a bit of real clout like the BCSC investigates this ongoing pattern of lowball behaviour by Casey's Louis James, Marin Commission Katusa and the band of merry men there.

This time Sunward Resources (SWD.v) is the preferred play. On November 4th, Casey Research recommended the stock to its Tier One (i.e. pay more for advanced info) subscribers. That day, the stock went up 13.8% as seen on this chart.

So the December issue of the more popular (cos it's cheaper) 'International Speculator' comes out and...yes you've guessed it..they have a new buy recommendation on Sunward Resources (SWD.v). So far today SWD.v stock is up 5.1%, trading 3X average daily volumes in the first hour. (Update: SWD closed the day up 13.6% on 6X volumes).

Thing is, these whiter-than-white market riggers actually think they can just put a disclaimer in the Intl Speculator that says "Full disclosure: this stock was recommended to Casey’s Investment Alert subscribers on November 4" and then be in the clear. You know what? I'm not so sure about that. I know for a fact what they're doing is utterly immoral and offering an enormous nudge-and-wink advantage to anyone on the Tier One list that follows the pattern. But it is time that Canadian authorities looked at these unregulated, unaccountable-to-anyone peddlers of unfair advantages.

But hey...Vancouver right? 

IKN salutes Marin Katusa and the new air of accountability sweeping through Casey Research

We at IKN Nerve Centre™ are pleased that, after some (ahem) gentle nudging Casey Research has decided to be more accountable to the people that pay them good money. This was noted yesterday in the Casey publication which explained to their readers for the very first time that Top Level (or whatever they called their premium service) gets stock recos before the proletariat (or whatever the lower rungs are labelled) and that the people working at the company do indeed make important sums of money via finder's fees on companies it's recommending (for example, the recent one at $1.16 $1.40 on Bayfield Ventures (BYV.v) that saw insiders selling stock the very same moment...BYV is currently trading at 90c....oops).

As for their stupid and erroneous attacks on this humble corner of cyberspace, we can live with that. Comes with the territory and all part of trying to clean up this scam-ridden Vancouver junior world in which we live and trade. Mind you, I kinda laughed when you guys simply make shit up about this humble scribe, such as the total lie told about me calling BYV.v a "worthless company", but I wouldn't expect important people like Casey Research to apologize for being proven bullshit liars anyway...so let it slide, dudes.
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But we digress, let's to the point! Now that Marin&Co are getting a taste for accountability and dealing transparency at long long last, wouldn't it be great if they didn't just stop at BYV and told their clientele (and not just via the obscure Reg F filings which only get read by wonks such as I) exactly what else the band of merry men have been up to over at Casey this year. So IKN calls upon Marin Katusa to keep up the good work and:

• Tell subscribers of Casey Research just how much in the way of finder's fees the Casey mob has made from placements run by companies reco'd by Casey Research in, let's say to be brief, the last 12 months.. I mean, I could wade through the whole public filings myself but it's boring, tedious and frankly I've better things to do with my life than rake through all that Casey muck.

• Inform the "regular" subscribers list just how many times they've been frontrun by a "premium" list that gets the advantageous intel first. After all, this may turn out to be good marketing, Caseyboyz...you might get more people on the expensive list once it's all done and dusted.

So come on Marin, don't stop now! At long last you're showing a bit of honesty and transparency in the financial dealings that go on behind the backs of your subscribers, so this is a great opportunity to open up, clean up and start getting rid of that scummy reputation you've picked up over the years...amongst the pro community i mean, not the retailers. After all, you'd hardly want people to start using the word "scam" next to the words "Casey Research" on the old Google machine all the time, would you. Oh, which reminds me: According to blogger back office these are the top four most used search terms on IKN in the last hour:

hits  %        term

	8	11.59%	ikn
	7	10.14%	casey scam
	5	7.25%	casey research scam
	3	4.35%	ikn otto

DYODD, dude.