Keith; No need to be cautious, there is little risk, of a dramatic fall, and sadly for a dramatic rise. The amount lost by the collective investors in BRE-X was far smaller than the amount lost in the overall market due to the BRE-X effect. The Vancouver market fell about 500 points. and TSE and ASE and MSE as well. This aggregate loss was 10 times the BRE-X direct loss.
Some have sold their positions, others stay put waiting for the return to the prior markets psychology. In a short time people will see that there is life after BRE-X.
I remember just after World War 2 was over, and the military cancelled all their procurement contracts there were huge amounts of army/navy/air force surplus for sale at 1-2 cents on the dollar. Smart people bought at the 1-2 cents, and then we say that there were markets at full price for army shoes, jerry cans etc. Of course some things just have no real civilian use, like bombsights, tank prisms etc, but Edmund Scientific among others, bought them and took out the optics and sold the, for telescopes etc.
Soon people will see that the stock of good companies are far under value, there are "surplus' shares out there. Look at PNB, in Vancouver. Penn gold. Has a huge Manganese find in Argentine near the Chilean border. Final value will lie over $30, now at 35 cents.
I am sure many now hold stock that were 2-4 times as high pre BRE-X, and they will come back soon.
One driver for this might be diverted monies from funds that are now getting into a cash position as the see a peak in the US equities. They will shift some of this into the exploration sector this fall as a hedge against a drop in the equity markets, as that fall will make gold rise, and the exploration sector rise.
Bill |
