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Alias Born 09/01/2005

Re: wbrislin post# 693

Wednesday, 12/21/2005 2:34:12 AM

Wednesday, December 21, 2005 2:34:12 AM

Post# of 1213
Wbrislin: I don't think the world is quite that simple. Should huge amounts of capital be directed into AU shares, it would push prices. But pushing prices will not influence earnings. At some point, all the other investors will find that the price is high enough to sell - because the capitalized value of the company has surpassed any realism. At that point, since fund managers aren't all that thick in their heads, the money will have found other investments.

However, if the funds were directed towards buying AU itself, things would look different (for a while). That would influence the POG and subsequently the share values.




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