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Gold/Mining/Energy : Barrick Gold (ABX) -- Ignore unavailable to you. Want to Upgrade?

To: Enigma who wrote (2290)	4/1/2002 5:25:38 PM
From: Tommaso	Read Replies (1) \| Respond to of 3558

" Some of these companies are making much of the fact that they are not hedged and it's a useful marketing and promotional tool for them." There is also the recognition factor. If and when various mutual fund managers decide that it is in their interests to add a gold holding, Newmont may be their first choice because it is huge and is becoming the most familiar name in gold mining companies. It is the IBM, the GM, the Microsoft, the Merck, the Duke Energy, of gold mining companies. But ABX might not be too far behind if they want to add an additional gold company. You understand, I am speaking of diversified mutual funds, not those that already specialize in precious metals or even in natural resources. With gold having been mentioned on the new "Wall Street Week," and by Merrill Lynch, and from a couple of remarks dropped by my own broker who wanted advise me about my IRA (unsought advice), it's beginning to be respectable--not just a kooky "gold bug" investment. My guess is that the huge buying power of mutual funds might first flow towards NEM, next towards PDG, and then to AEM and ABX--in other words, into the components of the XAU, in order or their capitalization, more or less. Just a guess. I see that LEAP calls are available for ABX as well as PDG. I may diversify into those from some of my NEM LEAPs for 2004. There still are no LEAP calls for the XAU.

To: Enigma who wrote (2290)	4/1/2002 5:49:26 PM
From: tyc:>	Read Replies (1) \| Respond to of 3558

>>>Does the market in fact price hedgers lower that non hedgers? That was the question you asked... and I believe it is very close to the essential question. What MY criteria of value is, or yours for that matter, is immaterial. The essential question is, "What is the market's criteria of value ?" The CIBC study demonstrates an evaluation system whose results approximate MARKET PRICES..... The option value of future unhedged production is real, and of course the market will recognise it. There is no option value in hedged production.... hedged production adds to Net Asset value, but contributes nothing beyond that. If I haven't made my meaning clear, please read the CIBC study.