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Strategies & Market Trends : Roger's 1998 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: Joey Two-Cents who wrote (7729)	4/23/1998 8:37:00 PM
From: Bill Wexler	Read Replies (1) \| Respond to of 18691

The only time I've shorted a gold stock was KRY - which is making fraudulent claims about a mine in Venezuela. Otherwise I don't follow them.

To: Joey Two-Cents who wrote (7729)	4/24/1998 5:39:00 AM
From: Mr Logic	Read Replies (1) \| Respond to of 18691

Joey, regarding gold stock valuations you need to be careful as the exploration/production companies are often highly leveraged to the price of gold. put very simply, for example if it costs $250/oz to mine when gold is $300, a -10% to +10% gold price variation means a -60% to +60% in margins. One reason why you see a lot of hedging, and why a good gold (or any mining) stock is a good play for the upside/downside. Many companies that were active at $380 basically battened down the hatches and stopped work last year when gold fell. Barrick and Placer Dome are the 'blue chips' of that industry. Hope this helps. Patrick.