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Gold/Mining/Energy : JAB International (JABI) -- Ignore unavailable to you. Want to Upgrade?

To: chuck who wrote (1445)	11/22/1997 5:24:00 PM
From: hoffy	Respond to of 4571

<<<<<<<Have been following BCMD for the last couple of weeks. With all of the recognized gold stocks out there (TVX and ECO) what is the appeal of BCMD priced above $1? >>>>>>>> While the price of Gold has been dropping, TVX and ECO have lost half of their value, BCMD has doubled. Stocks trade on potential and BCMD has a ton of it. Along with the possiblility of having a ton of gold. Once they start announcing their finding and their earnings start to show this could easily get to be a 5-10 dollar stock. It will take some time though and also will depend on the price of gold.

To: chuck who wrote (1445)	11/22/1997 5:37:00 PM
From: D.McQ	Respond to of 4571

Chuck: Your post comparing BCMD to stock like TVX and ECO was interesting. I would like to respond with the reasons I feel BCMD is far and away the wiser investment choice. Echo Bay Mines just posted significant losses for the last quarter. Their production costs are too high and the POG is still threatening to go lower. <<<<<<<<<<<<<<<<"The cash operating costs at the company's four operating mines averaged $256 per ounce for the first nine months of 1997. Total production costs were $373 per ounce during the same period. In the current low gold price environment, the company's cost structure has significant implications for the company's liquidity and flexibility to invest funds in exploration and development>>>>>>>> sec.yahoo.com I consider them very risky investments with production costs that high and the POG still unstable. At least BCMD who has a production cost of only $150 per ounce can be profitable even if the POG were to continue its downward slide for awhile longer. Until the POG reverses companies like TVX and ECO will continue to suffer. However, BCMD is currently making all time share price highs, a good indication that it will continue to do so no matter what the POG does. Both TVX and ECO are currently at the bottom of a plunge in their stock prices. ECO has a 52 week high of approx. $7 and is trading in the mid $2 range, Which is a loss of $5 per share in less than 7 months. TVX has plunged from $9 per share to as low as $3.25 and has lost close to $6 per share. While TVX looks a little more promising than ECO, I wouldn't consider either of these companies attractive and indeed I feel they carry an enormous amount of risk compared to the possiblity of BCMD's stock going very much lower. There have been many studies done that have proven that stock at its high end will often times go higher while stock that appear low and cheap usually go lower. Another well known fact is that the Market as a whole reacts very positively to anything new and exciting. The sign of an excellent time to buy a companies stock is when both of these two factors are present. BCMD fits that picture perfectly. They have just broken through and set a new 52 week high of $2.125. The present stock price drawback is a normal reaction to exceeding the previous high by 63 cents per share.. In addition, anyone who has been following this company knows that it has to have some significant news releases in the next few weeks. Each new press release should move the stock into all time highs. The JV announcement gives us a pretty good indication of that fact that we can expect more news from this company... . biz.yahoo.com <<<<<<<<<<<<Robert Danial, speaking on behalf of Sterling, stated, ''Our due diligence has convinced us that the surface of Brush Creek's massive property holdings has barely been scratched. We expect Brush Creek to be a high grade, low cost operation. We mean to insure that Brush Creek becomes a significant producer.'' >>>>>>>>> I have been evaluating a large number of stocks in light of the recent bargains available in this sector of the stock market, ECO, ABX, BMG, CDE and PDG are the ones I have followed for many years. So far I still feel BCMD is has the best risk vs return potential. If you bought BCMD at its close on Friday it only needs to go up a mere $1.38 per share for you to get 100% return on your investment. With the assay results and production numbers everyone is expecting BCMD to announce within the next few week no one would be surprised if it did more than that. On the other hand, I would be very surprised to see ECO or TVX or even companies like Placer Dome at $10 a share or Coeur d'Alene Mines at $9.68 give you more than 1/8 to 1/4 return in the same amount of time. In my opinion you would have a better chance of them dropping a lot more before they turn back around and start to improve. The risk that any or all of these companies stock prices dropping lower is historically easy to prove. The risk of BCMD stock dropping any lower is just as easy to historically disprove and it is much easier to prove that BCMD's stock can indeed turn very quickly and run back up to set all new highs. Darlene