23 March 2006

Safe Haven | Who Needs Al Capone?

Safe Haven | Who Needs Al Capone?: "Recently, when the Cheuvreux Report came out, I went straight to the chief principal at [my] firm to give him a copy. This guy is the chief stock picker in the firm and his decisions strongly influence the stocks that are bought and sold by the firm. After several days, he contacted me and stated that the report had really stimulated his interest, and are there any gold stock recommendations that I could provide? I thought about it and gave him the tickers HL (Hecla), NEM (Newmont) and AEM (Agnico-Eagle).
I was astonished with what [our] research department communicated to me several days later. You see, not only could our firm not buy any of my PM recommendations, the firm could not buy even a single solitary share of any gold/silver stocks and here is why:
1). Our firm uses Morningstar ratings on stocks and stocks cannot have the lowest rating [one star] to be considered by our firm.
2). Not only did my three recommendations all have the lowest rating (One star)..... every single gold stock with analysis was the lowest rating (One Star) !!!!
3). This was embarrassing to me and so I decided to read into what kind of content was in Morningstar analysis. When reading the analysis in Morningstar about my first pick - HL(Hecla) the text is so negative, if I did not personally know anything about this stock, I would have agreed with rejecting this stock completely. It read like a hopeless and horrible company and I was embarrassed that I even suggested this dog.
4). However, I became suspicious when seeing a target price for Hecla at $2.00, when the current price was $5.25 per share !!!! The author would not recommend buying this stock unless it was in the low one dollar range !!! Outrageous !!!
5). Hecla is admittedly a little speculative, so "

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