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Gold/Mining/Energy : ARP - V Argentina Gold -- Ignore unavailable to you. Want to Upgrade?

To: Zardoz who wrote (2881)	2/20/1999 7:55:00 PM
From: Link Lady	Read Replies (1) \| Respond to of 3282

thought you might be interested in this article. stockhouse.com Barrick Initiates Sutton Takeover Bid: Was It Wise? Both sides are calling the acquisition a "perfect fit," in Toronto-based Barrick Gold's [ABX] bid to take over Vancouver-friendly Sutton Resources [TSE/VSE - STT; OTC BB - STTZF]. Speculators and short covering snapped up Sutton shares on February 18th, driving the stock up 77%. But was this a good deal or should STT shareholders have held out for a better deal, following Argentina Gold's [VSE - ARP] rejection of Barrick's offer earlier this month? Sutton's Board of Directors unanimously agreed to recommend the offer to their shareholders and Sutton's president Michael Kenyon observed that multiple fairness opinions favored the takeover. Institutional investors, sitting on 60% of STT shares, and insiders controlling about 15% of the stock are probably enjoying a weekend of patting each other on the back; each thinly traded Sutton share could soon be converted into a 0.463 share of industry leader Barrick Gold. The deal passes only if 75% of STT shareholders approve the deal. And why shouldn't they? A bird in the hand is worth two in the bush. Sutton had already invested C$65 million in their Bulyanhulu deposit, which is allegedly East Africa's largest gold deposit. According to Sutton, production is scheduled for the year 2000, hopefully producing gold at a rate of more than 300,000 ounces annually. On February 1st, STT announced a new gold zone that might hold inferred resources of an additional 1 million ounces. That would bring the entire property to nearly 9 million ounces of gold. Sutton's management and institutional backers obviously thought they had better things to do with their time and better ways to spend Barrick's money than operate what might become an extremely profitable gold mine. The STT deposit could generate gross operating profits of US$58 million annually, which explains why Barrick issued a pre-emptive bid. Barrick is trying to exploit the new trend in senior gold stocks, snapping up juniors for a fraction of their full potential. One won't know whether their failed attempt at buying out Argentina Gold was good or bad for the market until ARP comes out with more drill results. Neither STT nor ARP was praying for the stupidity of ABX management to bail them out of their troubles, as can often be the case in the junior gold markets. Both could, indeed, have world-class deposits. Judging from Barrick's assessment of the gold "penny stock" markets, ARP was their first choice and Sutton the backup if they failed. The premium Barrick is paying - nearly 90% above STT's February 16th closing price - indicates that the major didn't want to hear "NO!" twice in the same month. A year from now, or sooner, we'll discover whether Sutton shareholders are kicking themselves over their swift approval of the takeover bid or crying in their beer because they bailed out too soon.

To: Zardoz who wrote (2881)	2/21/1999 1:58:00 PM
From: John Paquet	Respond to of 3282

Hi! Hutch; I am glad that you are doing fine these days. Good for you. First thing first RE Dow 10,200 Is this 10,200 Dow from that CNBC guru or Mrs. Cohen of Gogman Sach of New York Brokerage House on Wall Street. It it is from hers, I am afraid to tell you she has recently revised her forescasting. She turned into a bit bearish; in fact she revised that her equity porfolia from 85% down to 65% also she revised for bond holding down as GDP estimated will reach 6.5% etc. pretty strong economic forecast will wipe out Alan Greespan and CO. to lower interest rates further. That Dow 100,200, even US Space Center send Alan into the MOON or space oribit, I still doubt that it would reach that HI; you gotta kidding. So far for the very short-term I see Dow will break that 9100 burst-out down side and be heading that 8100 as these few weeks Dow has been hanging between 9100-9400. May be next week after Alan speaks. Secondarily; that Dow 6200 OH!!OH!!!! that is rediculously too low. Even Alan Greenspan had a heart attack, I would not see that Low. I think you gotta be kidding again, I hope you are not try to mislead us in this thread. Thirdly; I can learn from your comments about current GOP, I could tell you are outright bearish on GOP. On the opposite way, I think IMF and internatianl Centre Bank will have to force to buy gold into their reserves as they had oversold their reserves before that new EC centre Bank. You see. Therefore German, France, Italy, ... or G-7 will buy gold that will push gold into $400 by June. You said "Gore??" Is that El Gore??? I doubt he has any authority at all, May be Rubin if it is the case. But I doubt that anything would happen. Having said that I like to remind you last October?? or November I forecasted that VSE index bottom out on October, and rember you accused that I mislead investors etc. Look at VSE indeed, it had bottom out, am I right??? Hutch. Also, that XAU has to be bottom out it is kind of re-test that 61 bottom and will heading up again, next week. As dow will break that 9100, US dollar index can not hold up that 9800 any more, it has to go down as well. Tse gold Silver index is looking for the bottom as well. So everything looks so in-placed that is why ARP is bottom at that $3.40. Buy low sell hi is always the basic strategy. John Paquet BTW have a good week and profitable one!!!!