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Non-Tech : The Woodshed -- Ignore unavailable to you. Want to Upgrade?

To: tyc:> who wrote (36088)	1/1/2006 9:34:28 AM
From: TheSlowLane	Read Replies (2) \| Respond to of 60903

tyke - This reminds me of the discussion between Don Coxe and Sue Herrera the last time he was on CNBC. She kept trying to make the point that these stocks (mining stocks) had already gone up a lot, so they must be expensive by "traditional measures". Coxe responded that their earnings have been increasing at a rate that exceeded their share price appreciation and that, in fact, most of them are still trading with single-digit P/E multiples, far below the market average. There is no premium, there is still a discount. Some people told me that First Quantum (for example) was "too expensive" at $7, at $10, at $15, at $22 and at $25. When you examine their probable earnings trajectory over the next few years, the stock still looks cheap to me. Personally, I have room in the PF for both types of issues, Steady Eddie's and potential rocket rides. I wouldn't want to go 100% into either category.

To: tyc:> who wrote (36088)	1/1/2006 10:22:41 AM
From: orkrious	Read Replies (1) \| Respond to of 60903

You raise an interesting point perhaps worth discussing.. I don't think it think it reflects on CC's prowess at all. I think it has more to do with the understanding that you get the best percentage gains from cheap stocks. That's true when it comes to a contest like this. However, in the past, someone would have picked CKG by now. Incidentally, if that is true, should one really "hang on to your winners" ? Yes, in a bull market, especially if you believe this one is in its infancy, strong stocks often get stronger. People lose faith in the premium built into higher-priced stocks. A stock price falls when that premium falls, even though the intrinsic value remain unchanged. I think that depends on where you are in the bull market and what kind of market it is. In the precious metals arena, there are going to be many big finds that get bigger. Reserves go up as PoG and Pos go up, just because it becomes more economic to mine them.