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Gold/Mining/Energy : Pacific North West Capital Corporation-PFN on Alberta
PFN 7.340+0.5%Dec 19 4:00 PM EST

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To: winston.s.c who wrote (1315)4/28/2000 12:51:00 PM
From: Claude Cormier   of 2255
 
I agree with the risk/reward ratio fluctuating with the entry level.

But we seem to also agree that the more promotion there is, the higher are the risks taken by the newcomers. And this is what I don't like.

I also agree with you that there are great companies with great projects that are not performing as well as well-promoted stock do. But many of these companies also offer a better risk/reward ratio than the heavily promoted. Because they are non-promoted, there is no premium in the stock valuation. More often then never, they are selling at an heavy discount to NPV. And in these cases, it is only a matter of time before the valuation by the market reflects the true value of the stock. New shareholders buying these stocks never loose.

This being said, I am not against the so-called "momo" plays. But the price entry level becomes critical.
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