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Gold/Mining/Energy : Naxos Resources (NAXOF) -- Ignore unavailable to you. Want to Upgrade?

To: mark silvers who wrote (12440)	4/29/1998 4:09:00 PM
From: Tom Frederick	Respond to of 20681

Mark & Jason, on the subject of stock worth. In todays WSJ, the money and investing page has a very interesting article regarding bargain hunting in the stock market. In the category of "a thing is worth what someone is willing to pay for it" I point out the fact that Gillette trades at 45 times the past 12 months earnings while Yahoo! trades at 662 times net. Go figure. It is a perfect example of something being sold for what the market is willing to pay. Having said that, the market looks at the current fundamentals, the likelyhood for continued success or strong growth and puts that on top of current situations. Naxos will soon be showing the possibilities for strong growth and great success via the results from drilling since that is the assett that this whole thing rests on. Right now, the market has only a brief sketch of info to make a judgement call on potential (No matter who the management is, what is in the ground has a definitive value). However, the team that is put together to develop the drill program and set up the recovery will have a direct impact on whether the market looks at the 68 hole program with interest or looks the other way and says, "when you get your act together, give us a call". So Jason I agree that the market will pay what it is willing to pay, but coming to what that number is must be based on something concrete to start and then throw in the "unknowns and variables". The concrete for us is proving what is in the ground via the drill program. Recovery costs are a factor but IMO recovery will become a known element only with a much better picture of the ore content and the ore characteristics are understood. Any comments? Tom F.