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Gold/Mining/Energy : Barrick Gold (ABX) -- Ignore unavailable to you. Want to Upgrade?

To: Zardoz who wrote (265)	12/19/1997 11:45:00 AM
From: Ross	Read Replies (1) \| Respond to of 3558

Hutch, I look at ABX "only" technically and you seem to follow the fundimentals of gold/ABX. What is your downside for ABX? Ross

To: Zardoz who wrote (265)	12/19/1997 12:10:00 PM
From: Tommaso	Read Replies (3) \| Respond to of 3558

On the contrary, as with other matters of arithmetic, it does pertain to mining stocks. If you own the stock all you can lose is your total investment. If you short a stock you can lose many times your investment. ABX, as one of the best-managed mining companies, is a very risky short at this point in comparison with many technology companies. ABX already has its income locked in for the next two years, at least, with forward sales. A technology company is vulnerable quarter by quarter to declining earnings.

To: Zardoz who wrote (265)	12/20/1997 10:52:00 AM
From: Dwight Taylor	Respond to of 3558

Sounds reasonable, what's the plan?? <<<"the loss potential is unlimited while the gain is limited" That does not pretain to mining stocks with a predetermined mining reserves. In which case the stock value of a large miner quickly takes on the characteristics of the commodity mined, with some biasing. What a person can do is determine the lower limit, and position themself in. And than follow a strategy of long/short. With the benifiet of options, you can jump in at any value.>>>