Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (5908)	4/30/2006 12:07:24 AM
From: elmatador	Read Replies (1) \| Respond to of 217707

TJ "What happens is that we have 30 years of everybody and his uncle investing in technology (culminating with the techbubble) and materials lagged. Now is revenge time for materials." Message 22383566 Plunge in Microsoft shares worst in more than 5 years erasing $31.6 billion in market value. chicagotribune.com

To: TobagoJack who wrote (5908)	4/30/2006 12:45:25 AM
From: Muthusamy SELVARAJU	Read Replies (1) \| Respond to of 217707

TJ, I keep thinking surely there must be more 'steam' left in the mining stocks vs precious metals themselves, at least for a while, or at least until the wheels come off the world order as we know it today. I say this, disagreeing with your view in your last post about owning your own 'goldmine' with 99.999 purity as opposed to gold stocks, after comparing the following: - the share price of say, Goldcorp (GG) with gold, and feel the former still has a lot to run to catch up current gold prices, let alone any further runs in the price of gold; - the share price of say, Freeport (FCX) (or even Phelps Dodge (PD)) with copper/gold/silver, and feel FCX is still attractively valued vs the current price of all 3 metals, which the company produces. It would seem that well managed precious metals companies, located in safe countries like Canada, (I do realise FCX is US-based and its mine operations are only in Indonesia), will continue to outperform the underlying metal prices they produce, at least until the wheels come off the global stock markets themselves. There will come a time when this may happen, but don't you think this is at least a year away......at least till the end of this year. I think an analysis of the stock price performance of well managed metals companies should show that they have easily outperformed the price of their underlying (pun intended) metals in the recent past, but of course, they'd have beaten QCOM without any struggle! I guess the question that needs to be understood now is your estimation of the timing when the economic doomsday befalls all of us (typified by deep USD collapse, stock market collapses, capital market suspensions, mine freezes, sovereign debt defaults, 'irrational' acts on imposition of import controls and the like, etc. etc, as the markets seem to be telling us that this is still some way off. Your view on this timing will be much appreciated. Meantime, all your recent advice has come in extremely useful.....thank you!!! All the best, Selva