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Gold/Mining/Energy : Royal Oak-RYO -- Ignore unavailable to you. Want to Upgrade?

To: Michael Bidder who wrote (1487)	11/21/1998 8:15:00 PM
From: Thomas P. Talbot	Respond to of 1706

Mike: I think you are right. However, the way I look at it is that the Gold sector is very small in comparison to other sectors on a capitalization basis. For this reason, there can be substantial appreciation in the stock prices from a good rise in gold, simply because of the supply of capital versus the small amount of capitalization in the industry. Hence issuance of any sort of equity while dilutive is in the interest of shareholders as it keeps their interest alive for the next run up, which when it happens should drive these shares up well. As example look at PDG it is now at 16 with gold at 296.5 when its high was at 30 when gold was over 400 briefly in 1996. The reason for this is the "Amazon.com" liquidity factor which will eventually work for these shares. Therefore saying alive at any cost for the longest period is important. Perhaps the potential of the situation is not lost on some big finance people. In sum, IMHO any dilution to save RYO will be a benefit to all except the shorts. BR and its expense and conflict is in none of the party's interest.