sell or hold???, page-10

re: sell or hold??? for mangrove HUI and XAU have confirmed a bottom and broken out from their respective down trend channels, rising approximately 8% overnight. LHG has held support in the 1.27 to 1.32 area and will bounce accordingly. LHG stock price closely follows the HUI index. For those that are not aware, the HUI has dropped 25% over the last 7 weeks whereas LHG has only dropped 20%. In the last up run both LHG and the HUI rose 60%. LHG is still in an uptrend, bouncing along the trend line that has been in force since Jan 2001. Price is trending into an apex of an ascending triangle indicating a possible breakout anytime within the next couple of months. A break above 1.60 will signal the beginning of a new bull move towards $2 for LHG. The bottom line is, if you are bearish the S&P, then you are bearish the USD which means you must be bullish GOLD and ultimately LHG. Monday will confirm whether or not LHG is being abondoned by the goldies. My personal opinion is that LHG by international standards is under valued and one of only two major Aussie gold producers that can be accumulated by international investors wishing to diversify. With the South African government wanting to add another gold tax on all companies producing out of that country, I would expect more iimpetus towards diversification. Expect LHG to jump between 5-8 cents Monday.

Cheers,

Phillw

I hold LHGWOA, RSGO, BSGO, MMNOA