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To: Les H who wrote (4135)	12/17/2002 3:51:29 PM
From: Softechie	Respond to of 29597

Goldcorp (GG) 12.82 -0.28: After jumping to its highest level in 5 years, gold has reversed course and is now trading modestly lower on the day. Same goes for most of the gold stocks, as early morning gains have given way to a bout of profit-taking. One stock leading the retreat is Goldcorp. Turnaround in metal/stock triggered by comments from White House directed at supporting the falling dollar. Dollar weakness is considered positive for gold, while a stronger dollar generally takes the luster off the metal. Consequently, when the dollar rebounded in reaction to administration rhetoric, gold began to sink. However, while Bush Administration may talk a good game words alone won't prop up the greenback for long. Anxieties over Administration policies in the Middle East, a sluggish economy, low interest rates and a richly valued stock market suggest that the dollar is likely to remain on the defensive short-term. Technical break also bodes poorly. If dollar remains soft, then investors can expect gold and gold shares to snap back in the days and weeks ahead. As Briefing.com noted in its recent review of Precious Metals sector (see Sector Ratings page), gold also being supported by tensions in the Gulf, threat of terrorism, reduced and more orderly central bank selling, more favorable demand/supply equation, and less active hedging on the part of companies. As one of the top performing gold stocks year-to-date (+108%), Goldcorp is a leading candidate for investors seeking exposure to the sector. Stock recently broke out of a consolidation pattern and moved to a new 52-wk high. As long as support in the 12 to 11.20 area holds, and the base metal retains its luster, Briefing.com contends that GG has upside to the 15 area over the short- to intermediate-term. Goldcorp is a North American-based gold producer. Company is expected to earn $0.35 in FY02 and $0.38 in FY03. Clearly, once the spot metal stops rising valuation concerns are apt to creep in and cap the stock's upside. -- Robert Walberg, Briefing.com