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Gold/Mining/Energy : Francisco Gold - FGX.V -- Ignore unavailable to you. Want to Upgrade?

To: russwinter who wrote (772)	5/4/2000 4:38:00 PM
From: Nexus	Respond to of 1907

<<Ultimately these plays are about how many ounces are confirmed and at what price they can be developed for (capital cost) and at what price (cash cost)they can be mined for.>> Agreed. When all the information is known but difficult when the property is still in early exploration phase. <<PFG is priced about right if not a bit high, and it certainly has substantial downside if it disappoints.>> Agreed. If less than expected...down it goes. If better than expected...up it goes. But the uncertainty of the project has been reduced substantially. << FGX is substantially undervalued, with downside limited to the rather illiquid trading characteristics we have been discussing, rather than fundamental risk.>> I would not say that it is substancially undervalued. I think it is a quality company that is victim of the circumstances which are a bad PM market. It may be fairly valued considering the state of that market. After all, it is holding assets that are not giving back any returns to the shareholders in the form of revenues and profits. How much is a million dollars locked up in a safe for 10 years while the average investor can hold quality corporate bonds at 8%? The answer is $463,193. The "true" value of this company will only be recognized if there is a major development within the company, the gold price or the gold sector. << FGX is the strong buy. PFG is a marginal hold at best, but a serious exploration stock to be watched.>> Agreed if your tolerance for volitility is low. I believe that a stock like PFG that is holding a property that has a chance to become the biggest discovery in years in the mining sector has a place in anyones portfolio in the appropriate proportion. Good luck, Nexus