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Gold/Mining/Energy : Bema(Bgo) and Arizona Star -- Ignore unavailable to you. Want to Upgrade?

To: Ken Benes who wrote (8702)	12/17/1997 7:33:00 PM
From: Robert Dirks	Respond to of 10482

IMHO, these stocks are leverage plays on the POG at the moment. Anyone that has followed Gold for years knows that sentiment can be increadibly bullish or bearish on Gold. This in turn hits the leverage plays on Gold even harder, be it up or down. Most mid tier Gold companies are down 2/3 's or more from their highs of the year. Any genius who can time the upcomming bottom for Gold - it could be right now - and invest in these equities will be looking at major gains. This is the way Gold stocks have, and always will trade.

To: Ken Benes who wrote (8702)	12/17/1997 7:40:00 PM
From: Kaena™	Respond to of 10482

Terry Swift and several others have pointed out that the most important reason for BGO's disappointing performance of late has been due to the falling POG. I whole-heartedly agree. Predicting whether or not BGO will continue up from here is similar to prdicting the POG from here. Have we hit bottom or is there further downside? I for one believe that there is much more upside than downside for POG and thus for BGO. Aside from pegging BGO to POG, we have some excellent potential for BGO from the drilling to occur in January. I think BGO is a BUY at these levels and have been buying, especially under US$2.00. Evertytime POG has rallied the juinors (as a class of stocks) have outperformed the seniors (...) contrary to everyone's expectations. That's because thay been beaten down to such absurd price levels even more so than the seniors. We had a rally in June that fizzled primarily due to the Australian Reserve Bank Gold sale announcement. And then another aborted rally because of the Swiss Reserve Bank anoouncement that they may sell 1400 Tonnes of Gold. The fundamentals are with us. And for many reasons, the central banks cannot artificially keep down the POG for much longer IMO. Don't be surprised to look back upon December as the month you wish you had purchased Bema at such ridicuously low prices. (Low POG, dismall gold outlook, fear of CB selling, Dec. tax loss selling, over-exageratted blame on Bema management, etc., etc.) In fact if you go back and check the records, you find that CEO CLive Johnson sold a huge position back in Spring 96 BEFORE BGO soared in the fall! Don't be surprised to see Pres. Clinton announce a $50 Billion bailout to Korea via IMF to rescue the Asian markets with a concommitant bailout from Germany & Japan. M3 has been soaring all year and has been an accurate precursor of inflation. Even though the USG fudges the numbers and will continue to do so, inflation will be the BIG trend for the next several years. Think of expensive health care, (cheap computers), expensive homes and land, (cheap computers), expensive transportation and fuel and energy costs, (cheap computers), expensive food prices, education costs, on and on! But there will be (cheap computers). No, these bailouts occuring at present are signalling FED policy to inflate our world economies out of the mess we find ourselves. The smart money will soon figure it out and start piling into gold. If I were to take a guess, if not by spring of 98, then by summer.