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Gold/Mining/Energy : Echo Bay Mines, anyone (anyone) ((anyone))? -- Ignore unavailable to you. Want to Upgrade?

To: Alex Burns who wrote (164)	11/6/1997 11:22:00 AM
From: Alex Burns	Read Replies (1) \| Respond to of 300

The S&P downgrade was devastating to ECO yesterday. A little downside momentum appears to be followng thru today. It needs some basing action. I look for stochastics to turn up as the first indication of a reversal of the trend. The recent ECO chart has some interesting similarities to 1993. One bit of good news not noticed anywhere that I've seen: a Major Broker increased estimate for quarter ending 12/97 from $-0.11 to $-0.10 on 11/05/97according to Zacks. At least, that's improving earnings going forward. The restructuring is supposed to lower production costs. My take is that the company is trying to find a level of production that is most cost effective with the uncertainty in gold and silver prices. Less captial spending. Concentration on existing mines. The fundamentals are clear. It's not a pretty picture unless the price of gold and silver improves. I think the current price of ECO stock puts it pretty close to book value. Consolidation of mining companies is likely. But, there are probably other mining companies which are better buy out candidates. Signs of inflation are needed, but nowhere to be found. Currnecy collapses like are happening in SE Asia are deflationary. It's just a bad environment for hard assets. Alex