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Pi,
I have to have some fun <G>. I said that HM was a speculation and that I'm bottom fishing based on the chart and spot gold prices. I'm only going to nibble with 10 LEAP calls. I'm already hedged with 30% bonds but if gold does take off that will increase the hedge the rest of my portfolio. If not, the stop is close and the loss will be small.
RDC is another story. I think that is a solid pick, not a bottom fishing speculation. The oil drilling sector has been showing some life the last couple of weeks and RDC is in the special deep water niche. Time will tell.
Jim
-----Original Message-----
From: Private Investor <private-investor@xxxxxxx>
To: Jim Greening <JimGinVA@xxxxxxxxxxxxx>; Metastock List <metastock-list@xxxxxxxxxxxxx>
Date: Sunday, January 18, 1998 1:11 PM
Subject: Re: Weekly Pick
>Hi Jim,
> this is interesting choice this week. Call me stupid, but I do
>not like it. From the sector point of view
>HM is in Precious Metals sector, which stinks. This is the last sector I
>would like to put my money in. Also some more factors:
>
>1.Excess supply of gold,
>2.Central Banks are selling like crazy,
>3.When you would like to hedge on inflation or political instability (Asia)
>you buy inflation indexed bonds.
>
>About p.3 even knows NBR's Paul Kangas, he told that guy who recomended
>buying some golds stock, which were down as much as 50 % . (Last friday)
>Now things are more interesting. This guy is saying that Canadian Dollar is
>going down because, Canada sold all their gold, but he does not know why. I
>do not know either. Is there a currency trader, who knows why the Canadian
>Dollar sinks? I suspect budget or trade deficit ?????????.
>
>Now back to gold sector: Barrick, HM, and Newmount there are only 3
>companies were you could put money, but not now, I would say March/ April,
>and from the fundamental point of vu I like Newmount, they also pay
>dividends.
>I am giving HOLD to that pick.
>
> Now RDC, has better fundamentals, but sector was downgraded few weeks ago,
>it will be underperformer (sector) for 3-5 months.
>I know what you are saying that RDC has deepwater drilling rigs, and the
>others ....
>
>Please note who needs the oil and... rigs when:
>
>1. spring is coming soon,
>2. Bill let the Sadam export oil, again excess of supply,
>3. and ...oil is going down.
>
>I am giving HOLD to that pick.
>
>
>Hey Jim, you can do better than that.
>
>Cheers,
>
>Pi=3.14
>
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