Replies to post #82998 on Zeev's Turnips Patch-No Politics (ZEEV)

[CoalTrain]

Thanks for the post Dan. I think I will be picking up some more RGLD today.

CT

[lawreal]

***Gold****

Ed Bugos Highlights the Following Stocks: Goldcorp and Barrick
3/5/2003 6:03:36 AM

CHICAGO, Mar 5, 2003 (BUSINESS WIRE) -- Ed Bugos believes that gold stocks are about to put in a bottom. If you haven't yet jumped on the golden bandwagon, there still might be time while the outlook for the dollar remains bearish. Let this Pro introduce you to the space through a sampling of his extensive commentary and read about Goldcorp (GG) and Barrick (ABX) . Click here for the full story exclusively on Zacks.com: http://featuredexpert2bw.zacks.com/



Here are the highlights from the Featured Expert column:

Gold shares continued their slide Monday. However, they could be nearing the end of their countertrend move, particularly if Ed Bugos' gold price outlook is correct. Moreover, his gold share index suggests investors are factoring just a $310 average gold price for 2003. That was about the average gold price most gold producers realized in 2002. Meanwhile, the average gold stock is down 20% since February's peaks.

At its peak values in early February, for instance, Goldcorp's (GG) shares implied an average $415 gold price this year (range was $380 to $450). Today their market is saying gold is worth only $335 this year ($310 to $360).

Bugos might take it as a bearish indication for gold prices if the technicals confirmed it with intermediate bear signals in either the leading gold shares or gold itself. Since his outlook for the dollar remains bearish; because the main trends in the gold sector remain bullish; and because bearish sentiment is both relatively extreme and typical, Bugos' bet is gold stocks are about to put in a bottom.

Still missing from the bullish picture nonetheless is any indication that Barrick (ABX) is serious about reducing its hedge position. A New York Times article wrote Barrick up in a bullish light this weekend. But there was no indication by the author that the company is doing anything much different except perhaps explaining how their hedges are different than others.

Whether Barrick proponents expense negative changes to its hedge book or not, the market should, has, and probably will continue to.

Read Ed Bugos' entire commentary on ABX, along with additional information on currencies and equities along with his "Inflation/Deflation: It's About Value" and "Top 5 Gold Picks for 2003" special reports, by clicking: http://featuredexpert3bw.zacks.com/

About Zacks Featured Experts

[mainehiker]

thanks dan..that piece helped explain rgld, which IS hard to understand, and although ive been mentioneding it since last fall, and have traded it well, usually <G> i never quite understood it fully, after your link and the one i posted from Lance Lewis it is much clearer to me what they do, how they do it, etc. Another reason ive "trusted" it, is that Lewis has been "good to me" ive made quite a bit with his forward thinking short tips over the last 2 years. I traded out of 1/3 of new position in rgld yesterday for a nice littel gain, and kept the other 2 trading positions which are just slightly under water overall, that may change today....i also dont see all the political-race risk in S african miners many do, at least not short tern. although the rand situation is a problem.
thanks again