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Gold/Mining/Energy : Franco & Euro Nevada FN , EN -- Ignore unavailable to you. Want to Upgrade?

To: Bearcatbob who wrote (375)	2/15/1999 4:31:00 PM
From: Traveling Man	Read Replies (1) \| Respond to of 658

BBOB, No doubt about it,they are diversifying away from Au only. I've changed my mind about this outfit,personally. I originally invested because I was a gold bull in 94(Genius investing 101). After observing their track record since 87 and gold's dismal performance in the same period, I don't think it matters what they invest in. These 2 fellows are vultures of the first order and they still own more shares than any other individual,which tells me they think they can continue to increase assets at a nice pace the next decade. If I wanted an investment because I was a gold bull now(I'm not), I would definitely invest in EN primarily. Honestly,I don't think it matters whether or not the particular "metal" does well as a commodity,although that's a great bonus. I may be wrong,but I believe over the next decade they will continue to add to revenue and cash flow by adding new royalties bought at times like today when regular businesses can't continue under the "drought" they are having. Like robber barons,these guys have the available cash to buy you out at firesale prices and create wealth for themselves and their shareholders. I do agree 100% that EN will fare better over the next year because of the greater leverage Midas has on their cashflow. Royalties on production of any mineral is extremely low cost,low risk and high payout. These 2 guys have cornered the market on the concept. A decade from now,I don't think you&I will give a flip which one we have owned. We'll only argue over what champagne to have served on the cruise ship. I sure wish all my "speculative" gold investments had been in these bad boys! 300% gains sure as hell beat some of my 90% crashes! TM