We’ll get you to the Core Portfolio
in just a second. First, however, a few
gains and updates to tell you about
from our other existing positions: Cashing in on oil’s
rise: 34% gains on
PTEN Back in the June 2005 Taipan newsletter, Sara Nunnally and I col-
laborated on oil company Patterson-
UTI Energy Inc (PTEN:NASDAQ).       On September 29, based on a
four-day rising streak and a new
52-week high of US$36.44, Sara
decided to take some profits and
run, recommending a sell on half
the position for 34% gains at or
above US$36.15. Bird flu flies back
into the headlines:
Are we “dangerously
unprepared?” San Diego-based vaccine-maker Vical (VICL:NASDAQ) was Erin Beale’s
pick back on June 29, 2004 at US5.75.       With avian bird flubeing the next
fear gripping the world, this is a
company primed to take advantage.       United Nations’ estimates puts
up to 150 million people at risk from a potential pandemic if it spreads.       According to reports: “Roughly
140 million birds worldwide carry
the virus. It moves from wild to
domestic birds, which then can
infect people with whom they come
in contact. So far, the virus has not
“jumped” species, meaning that
humans have only become infected
through contact with a bird carrying
the virus. However, if mutations
occur that allows it to spread from
person to person, it could become
unstoppable. And because the virus
originated in birds, humans have no
immunity to it.”       Trouble is…the United States is
“dangerously unprepared” to
respond because the “public health
infrastructure is weak and because
advance planning has been need-
lessly delayed”, according to a letter
sent to President Bush. In fact, he’s
so concerned that he’s already given
thought to military-enforced quaran-
tines if the disease shows up in
America. The government is set to
spend billions to stockpile drugs to
thwart the threat. Birds bashing Europe In Europe, bird flu has already spread from Asia to Turkey and
Greece. There were 12 cases in
Romania and a case in Britain. Suddenly, European Union ministers
have realized that they’ve got a new
battle on their hands, besides stimu-
lating economic growth. But despite
issuing a statement, saying the virus
poses a “global threat” that requires
international action, they, too, are
unprepared.       European Health Commissioner
Markos Kyprianou says “most of the
25 EU governments lack sufficient
stocks of anti-viral drugs designed to
boost resistance to the common
flu.” The 25 nations have ten million
flu vaccines. But there are 500 mil-
lion people throughout the region.       This is another example of the
EU looking sluggish and lacking in
foresight. After all, this issue first
cropped up in 1997, when the H5N1
strain killed 60 people in Hong Kong.
Holland also experienced a nasty
bout of the H5N7 strain in 2003 that
resulted in the culling of 30 million
birds and economic losses totaling
500 million euros. Two-pronged profits
for vaccine-maker
Vical Vical is one company currently working on a bird flu vaccine under
a grant from the National Institutes 10 Next Page...       Missed out on any of the Taipan “House Hedge” plays because you’re not on our e-mail list? Our records indi-
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and 31% gainers by Martin Denholm continued on page 12…