Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Strictly: Drilling II -- Ignore unavailable to you. Want to Upgrade?

To: Louis V. Lambrecht who wrote (5308)	12/13/2001 3:02:44 PM
From: pater tenebrarum	Respond to of 36161

Louis, of course some of this has already been discounted, but imo not all. earnings for the unhedged producers are set to at least double, and ceteris paribus should rise even more than that over the next year. due to the dividend policies favored by most SA producers it is also to be expected that pay-outs will increase commensurately. in a market with almost no dividend yields and collapsing earnings left and right, this is like a beacon of light in a dark tunnel. and the SAR vs. USD isn't the only variable that's important: the USD gold price is as well. per experience, big jumps in the Rand gold price have often led USD gold price rallies. there's no guarantee of that happening again of course, but should the PoG improve in USD terms as well, these shares would take off on yet another bull leg. i must add that they are also historically very volatile, so there's generally no need to chase rallies. better to buy opportunistically on the inevitable corrections.