The Gold Newsletter wrote up Gold Canyon!
Since beginning our coverage on Gold Canyon their have been a number of other organizations that see the value in the stock at the current price. The Gold Newsletter just wrote up the company… Click the link below to read the full report from the Gold Newsletter.
CFS.. Totally agree..
Yes. I agree. No one seems to talk about this part of the M&A process. I like to buy (and hold) small Canadian and US miners (it is an ethical and environmental thing with me).
This happened to me recently when” Scorpio” bought the pure US silver miner “US Gold and Silver” and “Primero” bought “Brigus Gold”. I have recently bought shares of Scorpio for 50% of the price at the time of the M&A.
Brian, are you saying that Canadian miners that have projects in Mexico are less ethical or environmentally friendly?
Sort of.
For mines and resources located WITHIN Canada and US, I feel I can at least have a general understanding of environmental rules/laws, relationships with local communities, first nations agreements, worker safety, tax laws, etc. For Mexico, this is not true for me. I have considered looking at Australia as another jurisdictional area I would consider for investment.
So, actually, Scorpio is a divergence for me – but I own it for the US-based mining and resources. I would feel much more comfortable owning pure US or Canadian silver miner.
Thanks. From what I understand, environmental laws in Mexico are very good (and I might be wrong). That and the other issues you mentioned would be a good topic for Al to cover since you can’t be the only one with those concerns.
I think that tax that was implemented over a year ago has been thoroughly and painfully priced in. If only it would get repealed; then we’d get more than a pop and new money flowing in.
Brian, I sent you this response in the Gary blog today, but just in case that got buried, here it is again.
On April 10, 2015 at 3:15 pm,
Shad says:
Brian, here are my top picks for silver companies:
Hecla, Endeavour, Fortuna, Great Panther, Silver Wheaton, Sierra Metals, Scorpio, and when things stabalize in the price more then I also like McEwen, Santacruz, Silivercrest, and I still own a little Aurcana and hope their problems are behind them.
Many of those have operations or properties in Mexico, because it is one of the best places in the world for Silver mining. Hard to escape some exposure to Mexico if you like silver mining. Even the majors like Coeur, Pan American Silver, and Silver Standard Resources have a balance in different areas, but some exposure to Mexico.
Shad
Greatly appreciated ! I have a lot to ponder and research this weekend
Brian
Yes, that is a lot of info, but I really like the prices on the Silver miners as a group, as they are way oversold on a longer term perspective. Short term, if we get a little further pullback, I’ll be going shopping for more 🙂
Good luck to you Brian and may your stock picks be prosperous!
I completely feel ya on that one CFS as that has happened to me, but it is my hope that in some cases the new combined company will be stronger than that 2 entities prior to the merger. (like when Aurizon was acquired by Hecla).
Having said that, my biggest gains in the mining space have always been when a great Jr miner was at the right point in the cycle for a takeover, and the carnage had already been done to the shareprice. If you can spot these and get in before the merger, than while the pop is lower than long term holders like, the pop is still dramatic and can lead to huge gains.
Currently, here are some on my list of Jr Miners as potential takeover targets:
Exeter, International Tower Hill Mines, Rye Patch, GoGold Resources, Golden Queen, Torex Gold, Silvercrest Mines, Crocodile Gold, Argonaut Gold, Aurico Gold, Inca One Gold, Romarco, Orocobre, Idaho North, Bear Creek, Typhoon, Niogold, Wellgreen Platinum, Polymet, Jaguar Mining, Garibaldi Resources.
a few of those are producers as well, but I still say as takeover targets by Majors or Mid-Tiers.
FWIW, the biggest gain I ever had was on a buyout, although I’m sure most of it was luck and the times were different. I owned a small explorer named Miramar. It turned into a 5 banger when Newmont made an offer for the company. Much later, I think I read where it was a failure from Newmont’s perspective. Point is, it can happen…….but then so does ‘Powerball’.
I remember that takeover of Miramar and that was a nice pop.
I don’t know why folks praise takeover bids. I have owned stock in several companies taken over in the last year and every time it has resulted in stock taken off of me at a loss or swapped for shares in a company that I did not want to own.
At values so low as we have now, buy-outs are at bargain sale prices.