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Strategies & Market Trends : Stock Attack II - A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (43005)	2/5/2003 3:40:03 PM
From: Trumptown	Read Replies (1) \| Respond to of 52237

>>what- I'm not sure!<< I know...I think it means, no one believes POG will stay up...you know what happens when no one believes something...

To: Lizzie Tudor who wrote (43005)	2/5/2003 3:47:36 PM
From: Logain Ablar	Read Replies (2) \| Respond to of 52237

Hi Lizzie: A gold stock I follow is glg. For 2003 they plan on producing 250,000 oz with a cost of $170/oz. At $370 thats a $200 margin with G&A and taxes. Even if all $200 flowed to bottom line it would mean eps of 50 cents with the stock is in the 12-13 range its more than 24x this years eps (i don't know the G&A and taxes but this only lowers income and increase the multiple). The company now has 100M shares outstanding (they just did an acquision and secondary) so gold really has to rally or this has to really pull back before it comes back in the port. Its gotten a little ahead of itself valuation wise. Of course they have plenty of proven reserves which were written down when gold was in the dumps.