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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Knighty Tin who wrote (81225)	5/28/2000 10:47:00 AM
From: Freedom Fighter	Read Replies (1) \| Respond to of 132070

Mike, I owned the FCX preferred "C" at one point. It trades at a much larger discount to 1/10 of 1 ounce of gold now than it did prior to the Asian crisis. I suppose that the instability in Indonesia accounts for that because there are no guarantees that Freeport will continue to have the same arrangement they have now. On the flip side, with the passage of time the discount should be narrowing as we get closer to the maturity. FCX's balance sheet leaves something to be desired, but I still think the preferreds are one of the best ways to play gold that I can find. The yield is attractive and the discount is almost a double, so if you are a gold bull and correct the annualized return could be huge if you hold it until maturity. Wayne