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Gold/Mining/Energy : Madison Enterprise, MNP/VSE -- Ignore unavailable to you. Want to Upgrade?

To: Elizabeth Andrews who wrote (164)	11/21/1998 7:28:00 AM
From: Dan P	Read Replies (2) \| Respond to of 285

Elizabeth: Larry Abraham writes a newsletter called the Insider Report. He has been around for quite a while, and his focus is on political changes which affect the markets. He also recommends specific stocks which he considers undervalued. In some cases, he is of course financially rewarded for the recommendation. Madison has been recommended by several groups, and as you notice, has received relatively little notice from SI members. I personally would not short the stock at these levels, as they will be soon coming out with a new resource calculation. If you look at a chart, just last year the stock traded over C$7 with less information about their resource than they will be coming out with. They believe that they have several (2-4++?) million ounces of gold. In fact they suspect that ultimately, Mt. Kare could have a larger resource than Placer's adjacent Porgera. However, even if the resource amounts to 3 million ounces, at $25 per ounce, this puts market value at about $75 million U.S. With about 17 million shares outstanding, the current market cap is about $24 million U.S. In short, no pun intended, I would consider the stock fully valued at about triple current levels. Certainly, there could be a brief sell-off on the news, and the fact that gold continues to languish spooks resource investors into selling a stock that has moved up substantially. I think that 1999 could be a better year for resources in general. We'll see. Regards Dan