Goldcarp,

The Mexican drug war is overly sensationalized. No different than the US gang/drug war violence of the 1980's, that spawned such movies as "Colors". If you search on Mexico drug war and the word overblown, you will get alot of commentary that refutes the article that you have presented here. Truth is, Calderon needs a war. Wars keep elected rulers in power. Secondly, a drug war so close to the US border is sure to elicit US funds to fight the war given directly to Mexico...and it has not only done that, but it has helped to secure US forces and technologies as well.

Additionally, a bit of research beyond the article that you have presented, shows that homicide rates are much higher in other countries...nearly double in Colombia. Why don't we hear of the violence in Colombia? A Dictator doesn't need a war to stay in power. Take a look at Ventana...it's in Colombia. $12 from .12, and still sits at $8.79. Actually, I am pretty certain that even the US homicide rate is greater than that of Mexico. Why is it that the occasional gun violence killing that happens day in day out in the US, pales in comparison to heads showing up on doorsteps?

I suspect the price action in this sector is nothing more than typical Summer doldrums. We have seen a .20 price rise in Kimber over the past month, with a low around .60, I traded into the lows and picked up a significantly larger position at no additional out of pocket cost. I am a bit happier with this low than the low it hit last year, and suspect that we will see a similar climb as in the past two years that will take this stock close to $2, without any additional news. Of course this is just conjecture. I have a core position and then a substantial trading position to take advantage of this price rise.

One last thing, many of these "murders" are taking place between rival drug cartels and corrupt police factions that have aligned themselves with one cartel or another. I am not sure about you, but if one drug cartel wants to kill another, so be it. I would much rather they take each other's lives than the life of one of our soldier's.

Finally, the author's assertion that these cartels are slowly becoming defacto governments, is goofy. These people's interest is in running the drug trade, not in running government.

I have to admit, I wrote this in haste, so I apologize for any errors.