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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: pater tenebrarum who wrote (21697)	7/31/1999 7:29:00 PM
From: TimbaBear	Read Replies (2) \| Respond to of 99985

Thanks for the feedback....there is just something about ABX and the way it hedges that makes me nervous....I have read several of their most recent annual reports and I still don't understand their strategy and that makes me nervous....I ask myself: "If their way of hedging is so clever, then why aren't the profitability numbers of the other big producers looking similar?"...."Is ABX so much cleverer than the others and for so long?"...."Or is there an inherent danger to this approach that I fail to realize and the other companies don't want to assume?"....I mean ABX, because of this hedging strategy income being factored in, has a price per ounce a lot lower than the best of the breed....it is almost made to appear that this low price is the result of more efficient mining and better yield/ton, but a closer look reveals that the difference mainly comes from the proceeds of hedging....until I find an answer to this hedging exposure, I think I'll stay away from ABX.