Forum Archive Index - May 2004

["Lazy Haggis" <lazyhaggis@hotmail.com>]

PNA looking good over the next few weeks and beyond. The US dollar has now 
turned into a classic technical sell in favour of other currencies such as 
the Euro and the UK Pound. The US dollar internals (MACD and RSI) have 
peaked and look like heading downhill again, so sell the US dollar into any 
uptick strength (sell into strength).  Gold on the other hand is also 
trading as a currency, but in inverse proportion to the US dollar and 
therefore gold will rise as the dollar falls. This is confirmed by gold's 
technical chart which looks like a classic buy with the internals (MACD and 
RSI) becoming strong and upward bound, so buy gold into any downtick 
correction (buy into weakness). This includes gold shares such as PNA and 
many others.

As a gold stock, PNA technicals further confirm the above US dollar/gold 
scenario (as I previously posted when PNA was trading around 16 cents) as do 
many other gold stocks, with PNA's internals (MACD and RSI) now bottomed and 
heading higher, along with a share price increasing on increasing volume. 
This is the stuff of classic buys. I'm sure many other gold stocks are 
similar, so do your analysis, but at the moment, PNA is my favourite for a 
wide range of reasons such as ...

SCD's (ozestock board) detailed fundamental analysis of PNA, a growing 
number of buy recommendations from brokers which will further increase 
buying volume and support, a series of positive announcements and upgrades 
expected, excellent spread of quality copper/gold tenements, good 
management, plus more. All of this just combines to further enhance the 
classic buy situation.

Then there's the unknown premium. The terror factor. We all saw what 
happened to gold when the USA invaded Iraq. Imagine what would happen if one 
terrorist nuclear "dirty bomb" was detonated against any Western interests. 
Whilst not many would die, the fear factor would definitely take over and 
linger around for ages. Any real nuclear detonation would compound the gold 
terror premium at least tenfold. What is the chance of just a minor nuclear 
"dirty bomb" being detonated by terrorists this year or next year? According 
to the USA government, the odds are extremely high and they expect this to 
occur, basically they publicly stated that it's inevitable.

In the case of PNA we have a classic fundamental buy, classic technical buy, 
and classic terror premium buy. This will be the case for other upcoming 
quality junior copper/gold explorer/producers so get stuck into some 
research and due diligence now. There's plenty of money to be made in gold 
stocks. This is a great time to buy.

Lazy Haggis
The Mumbo Jumbo Filter

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