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Strategies & Market Trends : Ride the Tiger with CD -- Ignore unavailable to you. Want to Upgrade?

To: Rocket Red who wrote (106494)	2/23/2008 7:40:19 PM
From: Canuck Dave	Read Replies (2) \| Respond to of 312826

I always wondered what happened to their huge hedge book. When I first got interested in gold stocks, obviously Barrick came to mind, but it traded very weirdly so went with Goldcorp instead. I read Barrick's financial report once (or tried to). Of course, they were bragging about the hedge book back then. I never did understand their various tiers of delta-hedging, nor do I desire to. They claim to be unhedged now, but I do know that in 2001, they had the option of pushing their hedges out. I bet that's what they're still doing. CD

To: Rocket Red who wrote (106494)	2/23/2008 10:00:12 PM
From: koan	Read Replies (1) \| Respond to of 312826

ABX, great post Red. Remember when ABX was making all of the money hedging and selling forward. For years they made the most money and were instrumental in keeping a lid on gold prices along with other producers following suit. But no one hedged like ABX, never to the degree ABX did. For years they made the most money with their intricate hedging programs. Looks like their arrogance just bit them in the ass-lol. Could't happen to a better group-lol. They are going to have to cover those shorts at some point and if Kaiser is correct with his prediction of $2400 gold, holy cow!!!!

To: Rocket Red who wrote (106494)	2/23/2008 10:14:47 PM
From: PaperPerson	Read Replies (1) \| Respond to of 312826

abx piece -- thanks for posting it. barrick has been trying to clean up their image with goldbugs, while apparently hiding some dirty laundry. stay away and tell your friends. michael

To: Rocket Red who wrote (106494)	2/24/2008 4:13:32 PM
From: Gib Bogle	Read Replies (1) \| Respond to of 312826

Since Barrick is the biggest piece of GDX (14%) this is a good reason to avoid GDX, too.

To: Rocket Red who wrote (106494)	2/24/2008 4:37:02 PM
From: Claude Cormier	Read Replies (3) \| Respond to of 312826

Barrick is the hatred stock for its hedging practices. It is understandable and I would not buy it just for that. In fact I am indirectly short Barrick through puts on an ETF which owns a large portion of ABX. But it has been performing rather well for good reasons. They have cut their hedges significantly in recent years and 9 millions ounces hedged might not be a problem at all if they are spreaded for delivery over the next 15 years. The production they have streamlined for the coming decade is more than enough to cover that.