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Gold/Mining/Energy : Winspear Diaminds (Bulls Board) -- Ignore unavailable to you. Want to Upgrade?

To: freddy who wrote (384)	2/7/1999 2:31:00 PM
From: james flannigan	Read Replies (1) \| Respond to of 1172

Fred,I don't know if DDM will pay thefull $2 earnings in the formof a dividend.If the company can retain the full earnings and deploy the capitol at a satisfactory rate of return of say 15%,then i would rather them keep my earnings,If they can not produce that return or better the i would rather the earnings be paid to the sharholders in a dividend so i can produce a better return than the companies management.At the point where a company becomes a miner from an explorer,this is where the true test of management is measured over a long period.As for PE at 20 that would be fair value for the shares relative to the companies intrinsic value.AS a nother example Precision Drilling (PD) is trading at less than half its fair value,and only .9 its book value.IT is a screaming buy,last week a bought 2000 shares,this is a situation much like DDM. PD is afallen angle,due to the price of oil,the market has once again mispriced,there by creating the informed investor a chance to make an outstanding profit.