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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: d:oug who wrote (59836)	10/16/2000 8:52:42 AM
From: Box-By-The-Riviera™	Read Replies (1) \| Respond to of 116764

Sorry I had to snooze. what was that you were saying?

To: d:oug who wrote (59836)	10/16/2000 3:05:42 PM
From: Ken Benes	Read Replies (2) \| Respond to of 116764

Barrick down to 13.75 and heading lower. I still believe my original call for abx in the 12.s will occur. A close look at their income statement reflects declining revenue and earnings as gold continues to decline. To exacerbate the situation, some of their older high priced hedges are being rolled forward at much lower prices. When gold stocks fall out of favor, they lose the premium investors are willing to pay to have leverage during uncertainties in the world or equities markets. Without that premium, barrick will trade at valuations reserved for other commodities. Relegating a PE ration of 10 to one, barrick could be valued at under 10. Even though barricks reserve base is increasing, those reserves are being valued at a deep discount to historical norms of the past 15 years or so. What is the outlook for barrick, a price in the range of 12 with an upside potential of maybe 16. These prices continue to reflect a premium to pe ratios for other commodities. Most corporations would take appropriate steps to restore investor confidence during periods of poor market conditions. Barrick along with other producers react with more production, more leasing, and lower gold prices. Hence, abx will be lucky to find support at 12. Ken