Vol. 54 - FINDING THE BOTTOM

Dear Member,

What a week it has been. Our first Featured Company of 2008 continued to climb higher. Prospector Resources (PRR:TSX-V) finished the week at $0.315 per share, up an exceptional 43.1% since our coverage began just two weeks ago. Our team will be updating you on this company as they advance their Candamena Gold Project in Mexico, with an up-to-date shortly expected NI 43-101.

The markets were either trading sideways or down all week after a ground shaking service sector report sent stocks plummeting. At Pinnacle Digest we believe the retail sector can be used to gage and monitor the health of an economy.

January was a very telling month for the health of the United States economy and its consumer, which in terms of economic growth is the cornerstone to the economy. Retail chains across the country have recently reported their worst monthly sales results in almost five years. We have learned that a number of major chains are preparing for a slow down as they plan to close hundreds of stores and cut thousands of jobs. It has been reported that since December, major chains have announced plans to close at least 900 locations. The International Council of Shopping Centers has predicted that 5,770 retail locations will close this year. This represents a 25% increase over 2007, and the highest increase since 2004.

Wal-Mart Stores Inc. is a perfect example of a retail chain showing distinct signs of slowing. Wal-Mart has reported that same-store sales rose only 0.5% in January compared to a year earlier. This is far below its expectation of a solid 2% gain. In the fiscal year ended February 1st Wal-Mart US same-store sales rose just 1.4%. This is the lowest increase in nearly 30 years, since they began releasing this information to the public. Being the world's largest retailer, Wal-Mart can clearly represent the fading consumer sentiment within the marketplace. We will be watching their sales very closely as the United States teeters on the brink of a full blown recession. As these figures strike fear into the hearts of many investors, it only strengthens our belief that this is an opportune moment to buy stocks which have excellent growth and demand potential in their respective sectors.

In recent years North American investors have enjoyed substantial returns from outsourced foreign markets. Stocks outside of the United States have outperformed the Dow Jones Industrial Average time and again and have done so for the fifth year in a row. According to a Morgan Stanley Capital International Index report, emerging markets increased almost 37% last year.

Investors hoping to scurry