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Gold/Mining/Energy : Medinah Mining Inc. (MDHM) -- Ignore unavailable to you. Want to Upgrade?

To: DR. MEADE who wrote (4470)	7/24/1998 9:10:00 AM
From: EtTuBrute	Read Replies (1) \| Respond to of 25548

Problem is that could be anyone of numerous gold mines in South America. KMT: Checked TA late last week/beginning of this week. Share count was the same at just over 53 million. Im waiting with baited breath for Mr. Jameson to post. Unfortunately, I have to go out and play golf this pm. 80 degrees and partly sunny. I hate when my week ends like this. :-) GG

To: DR. MEADE who wrote (4470)	7/24/1998 9:28:00 AM
From: EtTuBrute	Respond to of 25548

Interesting reading on gold: *Morgan Stanley Gold/Gold Equities Report:* Can someone get & post the full text of the following report? This is a summary from Gold Eagle. "Editor's Comment: Chief Gold Analyst at Morgan Stanley Dean Witter, Douglas M. Cohen, has produced a brilliant report on ALL THE REASONS, PLUS ONE why an investor should buy some gold and gold equities to diversity his portfolio. Following are extensive excerpts from the lengthy report. 100 Reasons to Buy Gold And Gold Equities Part I A recent call to a hedge fund manager led to the following exchange: DC: Hi, it's Doug Cohen, the gold analyst at Morgan- HFM: Gold analyst, huh? Give me one #@&% reason I should buy gold. DC: Well, actually I could probably give you a hundred reasons, but- HFM: Then write down the hundred reasons and then call me back. This was followed by a loud click, after which the phone line mysteriously went dead. Strange coincidence -- it seems that gold analysts virtually everywhere have had the same phone problems for the last 15 months, if not 15 years. No time to worry about that though. I was only thankful that I hadn't used the "I could give you a million reasons" clich‚. Our list of 100 reasons to be bullish on the gold sector is linked to seven core themes. 1.Good times don't last forever, 2.The central bank picture is brightening, 3.The worst is over for Asia (for gold anyway), 4.An increasingly positive supply and demand balance, 5.Producers are beginning to take action, 6.Good value in gold equities, and 7.Several "wildcard" issues. We believe the recent rally in gold will continue. We continue to believe that there is more upside than downside for the gold price over the next 3-6 months. We expect the gold price to average $315/oz in 2Q98 and $340/oz in 3Q98 versus the current price of $308/oz. If we are correct, gold equity indices such as the XAU can be expected to increase by as much as 25-30% within the next 6 months. An easing of central bank fears should spark the rally. This report probably doesn't lack for possible catalysts that could trigger a rebound in gold. However, the best candidate in our opinion is a significant lifting of the ominous central bank cloud that has hovered over the sector since at least early 1997. An announcement by the European Central Bank sometime this summer concerning the amount of gold to be used to back the Euro has the potential to be a bellwether event for gold sentiment. We expect a solid gold backing-at least 15%, higher than the consensus view of roughly 5-10%. Upgrading Three Gold stocks. We are upgrading Barrick, Normandy and Prime Resources from Neutral to Outperform. Our price target for Barrick is $26 based upon a multiple of 15 times our 1999E CEPS of $1.72 (the industry average multiple is roughly 13 times 1999E CEPS), implying 15% upside from Friday's (4/3) close of $23. Our target for Normandy is A$2.1 based upon 7 times 1998/99E CEPS of A$0.30, implying 28% upside from the recent close of A$1.64. Our target for Prime Resources is C$13.0 based upon 15 times 1999E CEPS of C$0.87, implying 15% upside from Friday's (4/3) close of C$11. A few caveats. The general sense of gloom and doom regarding gold is so pervasive that we have gone a bit out of our way in this report to highlight the many factors that could spark a turnaround. It wouldn't be a terribly difficult exercise to compile a list at least as long focusing on reasons to be cautious about gold. Indeed, we hardly consider ourselves gold bulls and would be surprised if gold returns to its 1993 to 1996 trading range of $375-400/oz before 2000. The factors that we believe will limit the upside move in gold include: 1) the demonstrated willingness of producers to hedge into rallies, 2) the increasingly common view among central bankers that gold held in the vaults is an anachronism. Even after EMU, we expect central bank selling to persist at roughly the same levels that have existed for the last twenty years. We also expect the less well recognized, but almost equally damaging, central bank lending to escalate over time, 3) reductions in physical supply from mine closures will be less rapid and probably less significant than the consensus believes. Fine-tuning of 1998 gold price forecast. The gold price entered 1998 at $288/oz and exited the first quarter at $301/oz. However, the average for the quarter was only $294/oz, $6/oz lower than our $300/oz forecast. We are retaining our 2Q98 forecast of $315/oz and our 3Q98 forecast of $340/oz. However, we are lowering our 4Q98 forecast to $332/oz from $343/oz, in line with our belief (noted above) that producer hedging will likely choke off the rally that we are anticipating for this summer. Our forecast for the annual average goes to $320/oz from $325/oz with these changes. Our full-year 1999 estimate remains at $340/oz. Douglas M. Cohen - Morgan Stanley Dean Witter, New York This paper was originally published on 6 April 1998."