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

To: Ken Benes who wrote (3255)	1/7/2003 2:48:36 PM
From: Enigma	Read Replies (1) \| Respond to of 3558

Heve you looked at NEM over the last couple of days?

To: Ken Benes who wrote (3255)	1/8/2003 6:31:58 AM
From: tyc:>	Read Replies (1) \| Respond to of 3558

You guys are driving forward while looking in the rear view mirror. You say that Barrick's price is depressed because of the perception that their hedge position might blow up. Examples of derivative positions blowing up in the past are cited as examples. The market perceives the position to be riskier than the company or the other parties to the derivatives believes it to be. Supposing I were to agree that the possibility is real; that the price of Barrick is depressed because their operations are perceived as risky. Surely the higher the risk the greater the return. From the present risk-depressed price level, the probabilities of high future returns are great ! Speculators should welcome risk, provided they don't have too many eggs in a risky basket.... (i.e. beware of gamblers' ruin which occurs when the remotely possible disaster occurs). In other words, from the present risk-depressed levels, the probabilities are that Barrick in future will outperform the less risky unhedged miners.