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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: sylvester80 who wrote (95710)	7/17/2002 9:05:58 PM
From: Zeev Hed	Read Replies (4) \| Respond to of 99280

Syl, here you are making a big mistake, the earnings of gold companies with cash cost in the $270/ounce were negative or close to nil six months ago, and the price of the shares reflected the poor outlook, but at $300, some of these companies' earning could go up by a factor of 5 or 10, and thus the 400% price rise in the shares reflects the new reality accurately. The real question is whether gold will hold above $297, if it does, another attack on the $330/40 area will follow, and if the dollar continues its plunge, i think that higher gold prices will follow as well. Zeev

To: sylvester80 who wrote (95710)	7/17/2002 11:29:33 PM
From: Probart	Read Replies (1) \| Respond to of 99280

As others have pointed out it is quiet simple. If ABC gold company is producing one million ounces and break even was at $250 they are putting 70 million on the bottom line(current price being $320). A 20% increase in the price from say $320 would mean they would add 64 millions to the bottom line, pure jam, and some give it back in the form of dividends. Therefore a 100% increase in the price of the stock is very possible. Therefore also, not a "bubble" buy any means but real cash, real tangible, not some fluffy piece of paper.