BRE-X, Indonesia, Ashanti Goldfields, Strong Companies. Message Board

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Gold/Mining/Energy : BRE-X, Indonesia, Ashanti Goldfields, Strong Companies.

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To: kajtek who wrote (15285)	4/19/1997 4:01:00 PM
From: Method	of 28369

If there is less than 70MM Bre-X and Bresea go to zero. The lawsuits will kill them. Bresea is just as much on the hook as Bre-X. To say that the downside for Bresea is 50 cents is naive. Bro-X will also get hammered down further than 30 cents since all of their directors and management will go to jail. And Minorca... lets see they are sitting on a tonne of cash to finance a bigger stake in Busang. They may be sued buy the particapants in there most reent financing. The good thing about MAR is that if there is less than 70MM it won't go to zero. MAR is your best bet for security, the options are your best bet for a gain. Its all or nothing - Bre-X and Bresea are nothing more than expensive derivatives. Consider the price your paying as your strike price in advance. Options allows you to put in less capital and play this thing safe. Consider buying 1000 shares of Bre-X at $2.5O = $2500. Stock goes to $15.00 your investment is now worth $15000. Buy 15 contracts JUN5BXM calls at .90 = $1350. Stock goes to $15.00 intrinsic value of options $15000. Your final tally is the same as the stock but you bet just a little more than 1/2

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