Richard:
Homestake is not a good representation for moves in the Xau. HM for a multiple of reasons has been a laggard prior to most early moves in gold. Nem and abx are the stocks to watch and generally react first to moves in the gold market.
NXTL having a national footprint is or will be a valuable company. As you point out the current market cap of 8 billion plus is rather low when considering the recent purchase of airtouch for 50 billion. Grant it, nextel is highly leveraged, and is just turning the corner for being CF positive, however, with its high arpu, national footprint, and international markets, this stock will probably be taken out sometime in the future at a nice premium to todays price. If you look at my recent posts, you would see the reservations I have concerning the current situation of nxtl. Nextel is nothing more than one of many stocks with potential.
Finally, all I am saying to you and other prospective investors in gold, is it is a difficult market at best and watching every\ little nuance that may or may not effect gold shares is a self defeating situation. A reasonable sum invested in premium stocks, or junior producers at low prices will serve as an adequate hedge to the turmoil envisioned on this board and gold should be nothing more than a hedge. It should not be construed as the pot at the end of a rainbow.
Ken |
