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Strategies & Market Trends : Dave Gore's Trades That Make Sense -- Ignore unavailable to you. Want to Upgrade?

To: Dave Gore who wrote (8299)	6/18/2002 5:48:12 PM
From: Dave Gore	Respond to of 16631

ORCL falling back. $9.25. Those who bought the June 10 calls will probably not make a killing now. They had a shot, but it's unlikely now. BTW - there's still too many that buy on the numbers and don't wait for the guidance. You'd think they'd learn.

To: Dave Gore who wrote (8299)	6/18/2002 9:41:38 PM
From: The Vet	Read Replies (2) \| Respond to of 16631

Yes Dave, all the more amazing when you consider Barrick gold (ABX) trades at a PE of over 50 and it is heavily hedged. Then you compare HGMCY, unhedged with a PE of 8 or so. This sort of disparity occurs between all the North American majors and the South African gold miners, so when you hear the analysts say that gold stocks are overvalued, generally they are right. Even for gold stocks it should be a stock pickers market, but in a bull market everything rises, even those which on fundamentals, shouldn't.. However with gold miners a few dollars higher in the POG can make a marginal mine into a winner so those PE figures are very variable when gold is rising or falling. The exceptions are the heavy hedgers who have locked in their price and shouldn't react much at all except when their hedge book blows up and they get into serious trouble. ABX actually increases its hedge book loss by $21 million for every $1 rise in the price of gold. At about $345 per ounce they are in deep sh......