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Gold/Mining/Energy : Global Platinum & Gold (GPGI) -- Ignore unavailable to you. Want to Upgrade?

To: Larry Brubaker who wrote (4859)	1/25/1998 10:31:00 AM
From: Zeev Hed	Read Replies (1) \| Respond to of 14226

Larry, your numbers looks quite alright to me, if you remember during November of 1995 I thought the fair value of the company based only on the beneficiated heap was $10/share. Of course, then they had a little less shares and gold was selling at $400/oz. The ball park fair valuation does look in the $6 to $10 range, so why is the stock at $1.25? Either the market is not seeing the value the way we see it, or it is grossly undervaluing this company, or the market has no faith that even the modest goal of achieving 200 ton/day production by 2000 will be ahieved by current management. A similar situation exists with Fonar, I have calculated that the fair value of Fonar should be in the mid teens, yet the market keep beating the stock down to the mid 2'. There the market has no faith that the good Dr. Damadian can leverage the cash riches he has into a long term successful imaging company. I believe that eventually the market may change its mind, but I think that the technical action of the stock will show us this change in "faith". If and when that happens, the stock will break through the 3.5 range and then it could easily overshoot the fair valuation of $6 to $10, particularly if in the meanwhile some more well documented valuations of Weaver Creek and Oro Grande are coming forth. Zeev