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Gold/Mining/Energy : American Eco (ECGOF, ECX on Toronto exchange) -- Ignore unavailable to you. Want to Upgrade?

To: Mark[ox5] who wrote (1290)	12/17/1997 5:21:00 AM
From: Francois H. Gaston	Respond to of 2841

Mark: You are right on the money regarding TA. Fragile situation. A lot of pessimism on various ECGOF boards. Because TA does not give us a strong buy signal (although two momemtum indicators gave a buy signal: one on Friday, and one on Wednesday) overall ECGOF TA shows a fragile stock. I like this pessimism myself, because those "pessimists" are, in my view, trying to manipulate ECGOF and shake some soft hands (many reasons possible)... If they were "nice boys and girls" they would have been more helpful to us: i.e, they would (and should) have come in hordes when the ECGOF was overbought at 14.5 and should have told us to sell, then. Instead, like many analysts, they repeat doom and gloom comments regarding this company, at or near the low! (Just like Barrons this weekend). And spend an enormous amount of time doing that (see AOL Motley Fool board): VERY bullish to me. The more "mean, nasty and negative" posts, the closer we are to the low (IMO). If TA is not helpful right now, I am personally looking at (a) Asia (up last night) and (b) Europe indexes (also up) and (c) the trend of some other indexes. And guess what: if you plot Russell 2000 or Nasdaq, you can see that yesterday appears to have been a shorterm reversal of the downtrend. This, associated with (a) this time of the year (generally good for undervalued small caps) and (b) ECGOF being undervalued (PE about 9.7,... can't escape that!) and (c) growing,... and (d) new coverage probably coming... I am getting very upbeat about a trend reversal for ECGOF. Unfortunately(!), short interest is SMALL in ECGOF (I wonder why!) and a short squeeze will not bring much up move. Of course, ECGOF "missed" their quarter... but it is still growing. The long term trend is up, IMHO. In the short term (i.e. today or this week) we could be very surprised by a quick move up (I hope!), without TA warning. The cause: oversold situation, pessimisms at its max, and a general upbeat market (shorterm though!) which is trying to have its "January effect".... who would want to miss that! and go to cash or bonds! This is getting more and more speculative but investing in any equity is dangerous. Time to stick up with ECGOF, IMHO. Gaston