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Gold/Mining/Energy : Pegasus Gold (PGU) hits 52 week low -- Ignore unavailable to you. Want to Upgrade?

To: Jack Ryan who wrote (32)	11/17/1997 2:34:00 PM
From: Cascade Berry	Respond to of 199

If you are going to buy the dead cat bounce, why not look at something like Barrick LEAPS - for strike year Jan. 2000. These have good leverage on a bounce in the price of gold, and that company should fare all right as the higher cost producers reduce the supply coming onto the market by closing down. It is said that every bear market plants the seed of the next bull market. I can see this happening as weaker companies are forced out, reducing supply of the metal. And the news about central bank selling is "old" news - therefore it is likely discounted. I've been bearish on the sector since last August 1996, but have started some selective buying, including the Barrick 25 LEAPS for 2000. These should double on a 30 dollar move in POG which could start soon, if the Asian markets stabilize. Buy up stocks in up groups in up markets. At the very least buy the strongest players in the sector you are investing in - not the weakest. Other stocks beside Pegasus are equally depressed, and will bounce back - but first they need to SURVIVE. Cheers.