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Gold/Mining/Energy : GENTRY RESOURCES LTD. (GNY.B - TSE) -- Ignore unavailable to you. Want to Upgrade?

To: Len Hynes who wrote (575)	10/1/2000 5:24:46 AM
From: jerry janko	Read Replies (1) \| Respond to of 601

Comments from CS earlier this month, interesting. cheers, jerry - Anybody awake over the past year or so should have learned a hard lesson on Herd Mentality. Remember way back a year ago when oil was low, drilling was being cut and oil stocks where in the doldrums and there to stay? History tells us that commodity prices often times move from one end of the spectrum to the other and then back again. The roller coaster ride provided by oil prices should be a quick reminder that visions of the Herd are often not the reality. - One place that does benefit from the oil shock is the province of Alberta. Burdened with an overflowing treasury as a result of excess oil & gas royalties and a forecasted $5.5 billion surplus, the province is hard pressed to figure out where to waste extra money. One solution, why not give it away. Commencing in November every Alberta resident who is over 18 and filed a tax return will receive the first of two $150 cheques to help offset rising energy prices. Too further help reduce the embarrassing surplus, the government has also decided to begin giving energy rebates in January worth approximately $20 per household and cutting the small business tax in half. Obviously somebody in the finance department forgot about the $12 oil last year and doesn't believe that we need to save for a rainy day. - The biggest sign that Oil & Gas companies are generating too much cash? The lack of financings taking place, especially the tax incentive flow through shares. Under current price scenarios, many juniors will be debt free some time next year. - Remember the lesson on herd mentality above? We were speaking last week with some real gold bugs which had virtually given up that gold would ever recover in price. Central bank sales have over corrected for the supply - demand imbalance for years creating an eroding metal price. However, if you are a believer that the yellow metal is still a hedge against inflation or a declining dollar, then now is the time to be stocking up. Look for a declining U.S. dollar to help move up commodity prices after the U.S. election. - As of September 1st, U.S. natural gas storage was running 401 Billion Cubic Feet (Bcf) behind the 1999 rate and is expected to expand to a 500 Bcf deficit vs 1999 by the end of this month. This implies that if we have another record mild winter like last year, natural gas prices will not go down. If we have an average winter, prices will rise. If it is cold, people will panic. - The current oil shock is providing real threats on the inflation front in North America. With our reliance on cars and trucking, virtually every product will be effected in time with rising prices. This does not bode well for the Stock Market in general and throws a real shadow on the techs.