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Politics : Dutch Central Bank Sale Announcement Imminent? -- Ignore unavailable to you. Want to Upgrade?

To: Alan Whirlwind who wrote (11967)	9/6/2001 11:28:27 AM
From: sea_urchin	Respond to of 82811

Alan >Isn't it true that a lot of stocks trade at 2X to several times their value< Come to think about it, that's true. However, a mine can only be worth what it's worth, if you get my drift. It can't pull out more gold than there is wheras, with other kinds of companies, the assets are usually written down as result of depreciation and the companies can make returns on those assets which are not "fixed" to the value of the assets. All the same, Bobby Godsell (CEO of AU) is eyeing the valuation of the North American gold miners which stocks trade at 2-3 times the value of their underlying gold while Anglogold trades at a discount to underlying reserves. He hopes, by merging AU with Normandy, the big Australian miner, that the combined shares will trade at less of a discount to assets than they do now presumably because of the size of the operation and the geographic spread.