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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: ild who wrote (25496)	1/28/2005 3:52:46 PM
From: ild	Read Replies (1) \| Respond to of 110194

Date: Fri Jan 28 2005 15:25 trotsky (Knapper) ID#248269: Copyright © 2002 trotsky/Kitco Inc. All rights reserved "So is the latest GDP right, or wrong?" even worse, like all the preceding GDP data, it is meaningless crapola. over 80% of reported GDP 'growth' over the past few years has come from the information technology component, which is the by far most distorted via hedonic indexing. to illustrate how big a distortion it is: between 2000 and 2003, NOMINAL growth in IT spending was a NEGATVE 13% - i.e., in reality, it FELL by 13%. in the GDP accounts they reported 'real growth' of 58% instead. they transformed a worrisome decline into wild growth. but no-one ever spent or received any money in this 'growth' event. that is why the 'recovery' is jobless and the weakest since WW2 on every important measure ( esp. jobs and income growth ) - because there really isn't much of a recovery. it's a statistical mirage. Date: Fri Jan 28 2005 15:02 trotsky (McEwen) ID#248269: Copyright © 2002 trotsky/Kitco Inc. All rights reserved "Callers to Goldcorp's Toronto head office who get put on hold are also treated to a recording of the merits of the Goldcorp-Wheaton union." sorrreee, here's on GG holder who doesn't buy this hard sell. for one thing, Glamis is 100% correct that a pure gold co. is superior to a gold-copper co. in terms of market valuation. for another, Telfer ( who GG holders would then be saddled with ) is a promoter, not a miner. Glamis management are miners. lastly, there's a very good reason why GLG is the gold stock with by far the highest valuation in the market. these guys are ARE REALLY focused on growth. i used to support McEwen's idea that there shouldn't be growth at any price just for the sake of playing in the consolidation game. why should GG purchase inferior assets, when it had one of the best gold mines in the world? but he really missed the boat with PDG, and the WHT offer strikes me as exactly the thing McEwen always said he wanted to avoid. also, even if one doesn't agree with any of this, the fact remains that the GLG offer means an immediate upfront premium for GG shareholders, while the WHT deal would likely result in a downward rerating of the new entity. clearly, this alone makes the GLG offer far superior, and imo it's superior on other counts as well.