To: Enigma who wrote (47202 ) 1/17/2000 7:36:00 PM From: Ken Benes Read Replies (3) | Respond to
It appears that our resident curmudgeon is having a tantrum. I understand the limitations of downloading freebie charts, if you had access to a sophisticated charting program you would be able to overlay one chart over another. When doing this with abx and nem it is apparent that two companies were mirror images of themselves over the past several years. A clear divergence takes place in October of last year. After hitting a high of 26 on Sept 28, 1999, abx has retreated to its current dismal price of 16 15/16th. With the brief runnup in gold prices during September, it was evident that the massive amount of hedging employed by some companies were threatening the financial viability of those companies. While abx was not threatened at the time, investors took a closer look at the company and its hedgebook. The outcome is history, the stock has sold off while you claim it is being accumulated. When abx's situation was discussed on this board, you vehemently defended its hedging practices noting that the complex derivatives were employed by a sophisticated natural resource company protecting itself from fluctuations in price. Actually, I am being gratuitous, derivative was too cumbersome of a term for you, rather you were perplexed by the entire arrangement and promised to study up on it. Four months later you are just as perplexed, never answering a question, parroting support for a company you hold in high esteem. Barrick is under pressure from investors and its share price is deteriorating. You are crumbling under the enormous strain posed by defending the indefensible with arguments that border on being the ramblings of a retired mining man in a new and complex environment.
