The Market Rap: Enron: not big enough to be too big to fail
William A. Fleckenstein
06:00 PM 11|28|2001
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Sermon On The Newmont It's never been my intention to turn the Rap into a tip sheet, so I tend to mention specific ideas infrequently. However, I have made a point of the fact that a buying opportunity in gold would present itself, and to repeat, I think it's here. People need to find a vehicle that best suits their risk profile, whether it be bullion or securities (or avoiding the ideas altogether). My choice of securities is Franco-Nevada, which is now going to become Newmont. I don't want to divulge a lot of details, because I want people to do their own research, but for those who are willing to put in the time, there are some Franco-Nevada warrants that trade in Toronto that are very interesting. (Please be advised: Trading in these warrants is often "by appointment only.") I like the series that expires in November 2003. If one does the math, one will find that it is a very cheap way to leg into what will ultimately be Newmont "leap" calls. Again, let me say in the interest of full disclosure that I myself own a slug of these. My intention is to keep them for the long term, but I may trade them at some point. In any case, please do not send me e-mails asking for more specifics, because that is specifically what I don't want to do. But I think this is a low-risk juncture that people who have a mind to do something might want to take advantage of.
Market Wrap is a daily column published by William Fleckenstein. Subscription is $50/year. For subscription info email: fleckrap@attbi.com
Disclaimer: William Fleckenstein periodically publishes columns expressing his personal views regarding particular securities, securities market conditions, and personal and institutional investing in general, as well as related subjects.
Mr. Fleckenstein is the president of Fleckenstein Capital, which manages a hedge fund in Seattle, Washington. This fund regularly buys, sells, or holds securities that are the subject of his columns, or options with respect to those securities, and regularly holds positions in such securities or options as of the date those columns are published. In particular, this fund regularly holds short positions in such securities as of the date those columns are published. The views and opinions expressed in Mr. Fleckenstein's columns are not intended to constitute a description of the securities bought, sold, or held by the fund. The views and opinions expressed in Mr. Fleckenstein's columns are also not an indication of any intention to buy, sell, or hold any security on behalf of the fund, and investment decisions made on behalf of the fund may change at any time and for any reason. Mr. Fleckenstein's columns are not intended to constitute investment advice or a recommendation to buy, sell, or hold any security. |
