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Gold/Mining/Energy : Silver Bull Resources, Inc. -- Ignore unavailable to you. Want to Upgrade?

To: marcos who wrote (1410)	12/19/2007 1:19:00 PM
From: Night Trader	Read Replies (1) \| Respond to of 5637

Oh my expectations are pretty low, in fact I'm factoring in lower zinc prices going forward as we potentially enter a global recession. The stocks may have bottomed as they discount the future but the metals could decline further, particularly copper and moly. I've seen estimates for the marginal cost of supply (the point at which the higher cost supply gets choked off) around 60 to 70 cents but with cost inflation and $ depreciation it has to be 80 or more now. OTOH it doesn't seem to have happened yet at 1.00 so we can assume a "base" case of 80-100; it might go below that for a time but that wouldn't be sustainable. What I like about MMG is that zinc has already crashed to an extent and the silver as insurance and diversification. I don't hold any pure BM miners other than a couple of spec explorers. MMG is a non-expiring call option at these prices.