sell or hold???, page-7

re: sell or hold??? for mangrove The reasons for the downgrade to "sell" LHG are:

1. Concern about "sovereign risk"

2. Concern that given the strong rise in the US dollar gold price LHG's share price has managed only a slight rise.

3. Concern about the company's lacklustre performance over the past year - production fell 6% in 2002 compared to 2001 production

4. Concern about the diminishing quality of the grade of ore mined - 12% down on that previously mined

5. More of the same expected in 2003 - no recovery expected till 2004

6. Concern about the fact that, in a year when production fell administration expenses rose by 46% to US$31.3m

7. The bottom line is a concern about the quality of LHG's management.


These are some of the reasons given for the "sell" downgrade.

Make of them what you will.

I just felt that the risk in continuing to hold was was a little on the high side and I had no wish to see a nice profit evaporate.

There are plenty of other reports that present a more bullish view of LHG's prospects. The question is whether or not the proverbial glass is half full or half empty.