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Strategies & Market Trends : Heinz Blasnik- Views You Can Use -- Ignore unavailable to you. Want to Upgrade?

To: LLCF who wrote (3779)	12/10/2003 6:02:05 PM
From: orkrious	Respond to of 4916

Date: Wed Dec 10 2003 13:10 trotsky (Apollo, 11:29) ID#377387: Copyright © 2002 trotsky/Kitco Inc. All rights reserved one point about the valuation issue: it's true, they're very difficult to evaluate. there's the embedded option premium ( sometimes that can go to a discount ) , the fact that reserves increase with a rising PoG, the fact that many large mines report X amount of 'proven reserves' when sometimes much larger amounts of mineable material are in fact present ( see Jerrit Canyon ) , etc. etc. anyway, the point i was going to make is this: whenever an investment asset is difficult to evaluate properly , it is free to rise to stratospheric levels. the internut stocks are the best illustration of this principle - the more is left to the imagination, the better for the stock, especially when the market cap / float available for trading is rather small. this latter fact is no doubt true for the gold sector as well - the entire gold universe costs less than CSCO, or other tech behemoth firms. it produces however far larger earnings, and is now a growth industry, contrary to the current dispensation of the techs. i agree btw. that if the Barron's trigger had't come around, something else might have. but it's likely that Barron's being the source, the move was magnified. it seems many newsletter writers also jumped on the 'sell' bandwagon. Bugos, Hadik, Leib, etc. - an unhappy coincidence.