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Gold/Mining/Energy : Chesapeake Gold (CKG.V) -- Ignore unavailable to you. Want to Upgrade?

To: re3 who wrote (530)	5/15/2003 1:06:10 AM
From: Elizabeth Andrews	Respond to of 7835

Your comments are correct if we were living in the past, which we are not. The current conditions of a higher gold price, better liquidity and the acquisition mode of the majors are the factors now working against companies like CKG. The price of gold has moved up and may continue. This process makes uneconomic reserves economic and the equity of that type company can explode in this environment. CKG does not have a resource, so it will not benefit from rising gold prices until it has a resource, economic or otherwise. There are many companies that have sub-economic resources or economic deposits that can be improved and grown by drilling that the market and the majors are now focused on. That’s why CKG is a poor short-term bet in my view. It has nothing to do with the management of CKG because they are excellent but in the wrong market segment at the moment. I’m saying that the market sentiment is negative to companies like CKG and that I’m not negative about CKG or its long-term success. I’m not short CKG as I believe that we are in a gold bull and anything can happen. CKG is a bad bet right now in my view. I guess I'm apologizing for not being short CKG as well as trying to explain to myself why I should be.