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Technology Stocks : Xenolix Technologies (XTCI) 'Ecstasy'(Formerly MGAU) -- Ignore unavailable to you. Want to Upgrade?

To: Joe Hartenbower who wrote (3952)	5/29/1999 1:22:00 PM
From: Claude Cormier	Read Replies (2) \| Respond to of 5143

<< However, if the cash flow and profits are as much as I think they will be, who cares if the stock goes up.>. The problem is that all the mining stocks that have no proven reserves are always priced at a very low cash flow multiple. With current US$50 market cap for MGAU... MAGU will need to turn out $5M per year before the stock moves up from here. While it would be in the $50 level if there was a real indication that there are those million ounces. The key to high stock prices has always been strong mineable reserves...before strong cash flows. The reason is simple, without the knowledge of how big are the reserves, one cannot know how long the cash flows will last. Therefore the premium goes down on the stock. << Frankly, I think you are preaching to a very small crowd. Claude, I also think you are trying to give mouth to mouth recitation to a dead industry. >> I am sure you are not serious. There is some kind of metal in most the products you buy. There are more and more people with more and more money to buy these goods that contains metals. The cycle will resume on the upside within the next 2-3 years at the most, possibly this year. As for the gold industry: Here are some numbers on the total demand for gold: 1994: 100.9 millions ounces 1995: 116.2 1996: 109.3 1997: 127.2 1998: 132.5 1999 1stq: 62% above 1stQ 1998. <<I really don't understand why you are hanging around MGAU inferring that it will never work. I realize that you always say "I hope it does" and frankly that doesn't come across very sincere. >> You bet I am sincere when I say I hope it works. It will be much easier to know which stock to buy. As for why I hang here... well first I like healthy debates where there is no flames but valid argumentation. Next... what if MGAU works out... Me think that these special process based on new chemistry are misleading... and may cause premature enthusiasm as they are still untested on large volume.... Me also think that too little assays have been done on the property to justify these forecasts...But what if I am wrong ?? That is why you will find me around here and elsewhere. I search for value.