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Politics : Gold and Silver Stocks and Related Commentary -- Ignore unavailable to you. Want to Upgrade?

To: tyc:> who wrote (10553)	4/8/2005 9:04:01 AM
From: tyc:>	Respond to of 18308

More on shorting, hedging ! I hold three gold stocks whose prices I feel are being driven down by shorting; AGE, NGX, and RNG.... and I don't like it. (All of them have warrants which may be the enabling cause of the short-hedging). However, I sure don't suggest that the shorters are criminals ! LOL. Moreover the stocks at the lower prices are more desirable. I'll be damned if I'll sell them just because their prices may go lower still.

To: tyc:> who wrote (10553)	4/8/2005 9:04:02 AM
From: loantech	Respond to of 18308

tyke let's see what the trial comes up with. A lot of "things" seem to go on in America's corporate world today. And a lot of it is illegal or borders on illegal shennanigans.

To: tyc:> who wrote (10553)	4/8/2005 9:30:51 AM
From: Claude Cormier	Read Replies (2) \| Respond to of 18308

<To my mind it ignores one fundamental; stocks have value because they have earnings. To short sell stocks with earnings is to incur liability for the value if those earnings. (It makes more sense to hedge by diversifying on the long side).> Senior (and mid-tiers) gold producers, unlike most other stocks, see their net asset value go down when the product they sell (gold and other metals) goes does not move up. Further more, they face depletion of gold assets as they cannot easily replaced them. They lose on two fronts. The bigger they are the more they become cyclicals. Very few growth stocks in this sector. Juniors can certainly be shorted as well. But this game can be a lot more risky than shorting seniors as net asset value can change dramatically when a junior pulls a few good drill holes. On the other hand, if there are growth stocks in the mining sector, you will find them in the juniors. I do not short individual stocks. But beleive me that doing so on indexes or buying puts has been a good strategy for me to hedge my longs in the junior sector.