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Gold/Mining/Energy : Corner Bay Silver (BAY.T) -- Ignore unavailable to you. Want to Upgrade?

To: TheBusDriver who wrote (1541)	10/26/2000 10:35:51 AM
From: Eva	Read Replies (1) \| Respond to of 4409

<<<<<<<<BAY is so thin now that I feel sorry for anyone wanting to sell for tax loss. They will definately have something to write off if they do......>>>>>>>>> Hi Nick from sunny Florida ( hehehe had to rub it in ) you are so right ! Selling now, is beyond my understanding, just another little while, when the sh^& hits the fan, the PM's will get there day in the sun ! Subject 37210 CHEERS Eva

To: TheBusDriver who wrote (1541)	10/26/2000 6:34:39 PM
From: s.jennings	Read Replies (1) \| Respond to of 4409

<< We all better learn the new rules if we want to continue to make money on resource stocks.>> You've hit the nail on the head Wayne. It seems that the market considers all mining stocks as options on their underlying commodity. This has always been true to a certain extent for golds but even base metals producers are treated that way now. Cominco is a good example. The stock moved up significantly on the speculation that zinc prices would rise, which they did, but as soon as the price levelled off around $0.51 the stock sold off. Set a new 52 week low the other day before the increase in price could even be reflected in the companies financials. To me investing in mining companies is a two step process. First try to identify a commodity set to rise and then find a company that benefits most from that rise. In time the higher commodity price results in higher cashflow,earnings,i.e. value of the company, which should lead to a higher stock price. Not happening. Cominco's making money hand over fist but nobody cares. Today's market is too impatient to wait for the increase in value. They are only interested in speculating on the direction of the commodity. Once they are proven right, they sell and put the money into their next speculative assumption. To me, this is proof of the speculative nature of the current market. The tech sector has always been speculative and volatile so I don't think that is necessarily indictative of over exuberance, but when that same attitude prevails to the extent that it does in a sector like mining, particularly base metals, somethings wrong. I guess we have to rethink our standards of value. The fact that BAY is trading at roughly a 70% discount to NAV sounds like the market is bearish on the company and silver. But consider this. Cominco is one of the premier zinc companies in the world. Zinc prices are at a level where the company is generating tons of cashflow and zinc prices are expected to stay at or near this level for at least the next couple of years. Barring any new major capital expenditures Cominco should be debt free in less than 18 months. Sounds pretty good huh? The stock is currently trading at a 50% discount to NAV which was independently calculated a couple months ago in response to Teck tender offer for 4 million shares, so shareholders would know if the offer was fair. In light of this 70% doesn't sound quite so bad. I think the lack of sellers is more indicative of the markets sentiment than the lack of buyers. It appears to me that the buyers won't show up until they are ready to place their speculative bet on silver, regardless of what the company does.

To: TheBusDriver who wrote (1541)	10/26/2000 9:37:11 PM
From: Ron Struthers	Read Replies (1) \| Respond to of 4409

Wayne, you sure are correct about different times in PM stocks, it is brutal. I think the best ones to buy are the quality senior and mid tier producers, (FN, PDG, GLG, MAE, G.A) excellent value and they are the first to move, can survive and buy up their weak sisters. Also I think you should have some money in more speculative stocks and those with leverage like BAY, also a few low risk/high reward exploration plays is good. This is why I like DCY, ARQ, IDO etc. Ron