2 leg down to be devastating, page-65

I think there is reasonable safety in current producers.

Most of the pure specs I hold or have recently held have been hammered.

Those that have production either now or coming on line in the immediate future have fared well and dropped to a price that factors in production without a premium for speculative value on other projects.

There is safety in Blues at current prices. If BHP were to hit $30, a price at which it is backed up with a PE of about 9-10, or worst case PE of 14 if allowing for a drop in commodity prices to about 3/4 of current and no increase in output (Oil and U aren't going to fall much though, if at all, and as we know BHP will increase production approx 50% overall within 3 years), the institutions would be falling over themselves to pick up shares and support would be impenetrable.