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

To: russet who wrote (2298)	4/1/2002 9:59:11 PM
From: tyc:>	Read Replies (1) \| Respond to of 3558

>>>which suggests that the market does value Barrick higher than most of its peers,... OK! I am looking forward to your next post with bated breath ! In the meantime; the market may well value it higher than its peers. I do too ! But would it value it even higher if it didn't hedge ? Having been brainwashed by the CIBC report, I think the answer is "Yes !".

To: russet who wrote (2298)	4/2/2002 12:30:29 AM
From: FuzzFace	Read Replies (2) \| Respond to of 3558

"Barrick has one of the highest P/E's of the majors and it has been that way for many years which suggests that the market does value Barrick higher than most of its peers,...even nonhedgers" The market always puts a premium on perceived long term, consistant results. Hedging is a tool to get better results in a bear market. ABX thru good management and well chosen hedging, got those results in a bear market. So it makes sense they were given a higher multiple during the bear market. Now the bear market looks to be over. The question is: will the market continue to put a premium on reliable but relatively unexciting results? I'm betting there will be switch in the premium to those more levered to POG. It may already be underway, as evidenced by the way the unhedged are outperforming the hedged lately. But it makes sense that the changeover is slow and steady. More people need to be convinced the gold bull market is real. The worst thing in the world would be for gold to off like a bottle rocket. Such flights are notoriously short. For the record, I'm long AEM, GG, GOLD, HGMCY, and GSR. Viva a slow but steady gold bull!