There are better gold companies. Find one that earns a decent profit and pays a good dividend. Goldcorp, etc. I have owned both for way too long.
Here is a recent article on the gold sector:
The Battle for Osisko Mining: A Good Sign for the Gold Mining Sector?
By Henry Bonner (hbonner@sprottglobal.com)
Steve Todoruk, an Investment Executive at Sprott Global Resource Investments Ltd., said last year that big miners were the key to a rebound in natural resource stocks.
He is happy to see them get rid of their mistakes from the bull market years, writing off their worst projects. With all this bad news out of the way, he believes they should get back to generating cash flow and sensibly expanding operations, which would improve sentiment in the sector.
Today, Steve says big miners look like they have moved past the pain of the last three years, becoming more aggressive now. See his recent note below.
When the mining sector is growing, companies expand their production by acquiring new mines and deposits. In unhealthy times in the mining sector, merger and takeover activity usually comes to a halt.
When this merger activity starts to wake back up, it could signal the start of a rebound from a bear market. Mergers signal that companies feel more confident that the worst is behind them; it indicates that they are more aggressive and preparing for rising metals prices.
Two months ago, we saw signs that majors were on the search for mergers and acquisitions once again. The world’s third-largest gold producer, Goldcorp, announced a hostile takeover of Osisko Mining Corp., which owns the large Malartic gold mine in eastern Canada, for $2.4 billion1.
The mine aims to produce 500,000 ounces of gold per year for a long time2, in a safe country – increasing Goldcorp’s annual production and decreasing its exposure to political risk. Goldcorp believed the mine would also have synergies with another mine that Goldcorp is building in the same province of Canada -- the Eleanore Mine.
Displeased with the low-ball offer, Osisko’s management denounced Goldcorp for being opportunistic at a time when the mining company’s share price was undervalued. They urged Osisko shareholders to turn Goldcorp down and allow management to fight for a higher offer.
As with most management teams who are the target of a hostile takeover, Osisko set out to find a white knight to make a higher and more friendly takeover offer -- preferably instigating a bidding war to push the takeover price even higher.
In early April, Osisko announced it had found such a suitor in Yamana Gold Inc. Yamana would buy 50% of Osisko for $1.24 billion3, meaning Osisko and its shareholders would retain direct exposure to this growing gold mine through the other 50% of the company.
A week later, Goldcorp stepped in again, offering $3.28 billion to fully take over Osisko.
Once again, Osisko responded by attracting an even higher offer. Osisko announced that Yamana and Agnico Eagle Gold Mines were making a joint offer totaling $3.55 billion for the company2. This latest offer represents a 60% increase from where Osisko was trading just two months earlier.
What this recent takeover fight means is that at least three big gold mining companies are seeking to make new acquisitions today. They have cash to spend. That is very healthy for the junior mining companies that own high-quality deposits – especially in mining-friendly, lower-risk countries.
The recent Osisko episode also shows share prices can rise quickly if a bigger company comes along and offers to acquire some or all of their assets.
As an investor, I suggest building positions in juniors that are most likely to be taken over by bigger companies. Don’t fret about your company’s languishing share price. If you have done your homework and chosen the best juniors with high quality deposits, I believe a bigger company will come knocking on the door someday offering a significantly higher and fairer price. From my experience, the price that a bigger company will pay tends to reflect the full value of the deposit, regardless of where the market has priced it.
The dust appears to have settled on the battle between Goldcorp and Yamana - Agnico Eagle. Goldcorp has recused itself from the bidding war, meaning they will walk away the loser. This leaves the gold miner disappointed; its cash is still there, burning a hole in its pocket.
To investors, this means Goldcorp will be on the prowl for another opportunity to expand. It’s time to find the companies that Goldcorp and others are likely to acquire. Hopefully, we may make a takeover premium as high as Osisko has just experienced.
Start by looking for juniors that have large, high-grade gold deposits in Canada.
Well Moose? Cash burn reduced to $260ish million, cash pile went up to $3.1B. Chen expects cash burn to continue to reduce and the cash pile not to go below $2.5B in the future... and August is only 2 months away.
I care because I'm glad I picked some up at $8.00 Canadian.
I am sure all BlackBerry employees care too (that includes me).
Hopefully all these bloggers who are not regulated like real reporters will start being careful what they say about BlackBerry and hopefully people will stop regurgitating what they read on blogs as gospel. Blogs are often merely uneducated, biased opinions (often paid for) carefully crafted to polarize you based on emotion rather than substance.
Hobbes, a big step to close the app gap is a big deal. Netflix is a big one in there... but +240k apps is a good thing.
Looks like I was wrong, BGR is still at it. It is amazing how 'brilliant' they are to be able to make summary statements like this... "BlackBerry's success now effectively hinges on Indonesia, South Africa and Nigeria." Amazing.
I won't even provide you the link to the article since he likely gets paid by page hits. Do I know that as fact... no... so I did not state it as a fact. Interesting concept.
BB should have dissappeared long ago by this dude's predictions. There is no accountability in the bog world so don't trust what you read.
Wish I had bought more but not this time... There ARE going to be more bumps, perhaps I'll catch the next buying opportunity..
An acquaintance of mine did buy 3 or 4K shares at under $8. so imagine he's thinking about taking some profits. I only have a 200 or so since I last took profits... It has been a gold mine for the astute investor though, no doubt about that..
Without debenture fair value adjustements etc they actually still lost money. Not much mind you. The "GAAP Profitability" did make for a nice title in the PR though. If it weren't for the minute possibility of a takeout it would probably be a good short here.
Technically the stock has busted above the 200, 100, 50, 20 & 5 day MA on heavy volume. There could be a W bottom forming since March. The $7 mark I talked about proved to be a strong support and there was a lot of consolodation at that level. As of May 30 there was still a high short interest level (20%ish) so there is a possibility of a squeeze. The analyist upgrades from oblivion have already started. The one negative thing I see is the large gap that might want to be filled on the daily chart down to $8.50 US.
The nuts of the quarter report is that BB showed a huge reduction in the cash burn rate and those people projecting a line out to when the company would be out of money now see that things have changed. Companies die when they run out of cash and BB looks to have some serious time left now even if things don't continue to improve.
Just a guess but... perhaps BBRY will see a rise to around $10.50 in the next few days then consolodate to form a cup and handle. The volume spike on the rise is typical for a cup and handle. So maybe it'll drop back to $9.00-9.50 then jump again to $13ish. Maybe even on the intra day it'll try to fill the gap down to $8.50... but that gap fill isn't really a must just a tendancy and that's a bit far down to go for a typical handle.
Just guessing in advance so I can maybe brag later, I just dable in this stuff.
Just dabble. I am still not 100% sure there is anything to this technical analysis hocus-pocus. It's hurt me at least as many times as it has helped me .
Gotta be aware of where it comes from. No understanding of profits to be made. Bet he wasn't smart enough to buy at $6+. Follow the lemmings, follow the lemmings...
Gotta be aware of where it comes from. No understanding of profits to be made. Bet he wasn't smart enough to buy at $6+. Follow the lemmings, follow the lemmings...
I used to sell drugs, I'm well aware of the process of profiting from buying things for cheap, and selling higher, thanks.
here's a question for you guys:
Where do u see rim 2 years from now? Are they developing anything new and innovative, instead of playing catch up and showing up a year late with stuff Thats already been on the market?
I personally hate the company for Fucking over family from their incompetence, poor product, and lack of development.
If u can project bb growing , I'm all ears .
Apple is a giant and pwns the market, and even they are partnering with companies like IBM to bring users innovation and apps to make life easier. Specifically the business market, which is the only real thing BlackBerry had going for them.
Comments
Well thank you but actually it works out to only about 11% on an annualized basis and there is some risk.. obviously..;)
Me too. $7 US saw good support yesterday. I just can't decide if I think it's going to take a stab at the low $6s or not.
Is that a serious question?
I know there is the other thread but I'm lazy.
June is getting closer fast moose.
There are better gold companies. Find one that earns a decent profit and pays a good dividend. Goldcorp, etc. I have owned both for way too long.
Here is a recent article on the gold sector:
The Battle for Osisko Mining: A Good Sign for the Gold Mining Sector?
By Henry Bonner (hbonner@sprottglobal.com)
Steve Todoruk, an Investment Executive at Sprott Global Resource Investments Ltd., said last year that big miners were the key to a rebound in natural resource stocks.
He is happy to see them get rid of their mistakes from the bull market years, writing off their worst projects. With all this bad news out of the way, he believes they should get back to generating cash flow and sensibly expanding operations, which would improve sentiment in the sector.
Today, Steve says big miners look like they have moved past the pain of the last three years, becoming more aggressive now. See his recent note below.
When the mining sector is growing, companies expand their production by acquiring new mines and deposits. In unhealthy times in the mining sector, merger and takeover activity usually comes to a halt.
When this merger activity starts to wake back up, it could signal the start of a rebound from a bear market. Mergers signal that companies feel more confident that the worst is behind them; it indicates that they are more aggressive and preparing for rising metals prices.
Two months ago, we saw signs that majors were on the search for mergers and acquisitions once again. The world’s third-largest gold producer, Goldcorp, announced a hostile takeover of Osisko Mining Corp., which owns the large Malartic gold mine in eastern Canada, for $2.4 billion1.
The mine aims to produce 500,000 ounces of gold per year for a long time2, in a safe country – increasing Goldcorp’s annual production and decreasing its exposure to political risk. Goldcorp believed the mine would also have synergies with another mine that Goldcorp is building in the same province of Canada -- the Eleanore Mine.
Displeased with the low-ball offer, Osisko’s management denounced Goldcorp for being opportunistic at a time when the mining company’s share price was undervalued. They urged Osisko shareholders to turn Goldcorp down and allow management to fight for a higher offer.
As with most management teams who are the target of a hostile takeover, Osisko set out to find a white knight to make a higher and more friendly takeover offer -- preferably instigating a bidding war to push the takeover price even higher.
In early April, Osisko announced it had found such a suitor in Yamana Gold Inc. Yamana would buy 50% of Osisko for $1.24 billion3, meaning Osisko and its shareholders would retain direct exposure to this growing gold mine through the other 50% of the company.
A week later, Goldcorp stepped in again, offering $3.28 billion to fully take over Osisko.
Once again, Osisko responded by attracting an even higher offer. Osisko announced that Yamana and Agnico Eagle Gold Mines were making a joint offer totaling $3.55 billion for the company2. This latest offer represents a 60% increase from where Osisko was trading just two months earlier.
What this recent takeover fight means is that at least three big gold mining companies are seeking to make new acquisitions today. They have cash to spend. That is very healthy for the junior mining companies that own high-quality deposits – especially in mining-friendly, lower-risk countries.
The recent Osisko episode also shows share prices can rise quickly if a bigger company comes along and offers to acquire some or all of their assets.
As an investor, I suggest building positions in juniors that are most likely to be taken over by bigger companies. Don’t fret about your company’s languishing share price. If you have done your homework and chosen the best juniors with high quality deposits, I believe a bigger company will come knocking on the door someday offering a significantly higher and fairer price. From my experience, the price that a bigger company will pay tends to reflect the full value of the deposit, regardless of where the market has priced it.
The dust appears to have settled on the battle between Goldcorp and Yamana - Agnico Eagle. Goldcorp has recused itself from the bidding war, meaning they will walk away the loser. This leaves the gold miner disappointed; its cash is still there, burning a hole in its pocket.
To investors, this means Goldcorp will be on the prowl for another opportunity to expand. It’s time to find the companies that Goldcorp and others are likely to acquire. Hopefully, we may make a takeover premium as high as Osisko has just experienced.
Start by looking for juniors that have large, high-grade gold deposits in Canada.
BlackBerry announces deal with Amazon Appstore | Toronto Star
I care because I'm glad I picked some up at $8.00 Canadian.
I am sure all BlackBerry employees care too (that includes me).
Hopefully all these bloggers who are not regulated like real reporters will start being careful what they say about BlackBerry and hopefully people will stop regurgitating what they read on blogs as gospel. Blogs are often merely uneducated, biased opinions (often paid for) carefully crafted to polarize you based on emotion rather than substance.
Hobbes, a big step to close the app gap is a big deal. Netflix is a big one in there... but +240k apps is a good thing.
I won't even provide you the link to the article since he likely gets paid by page hits. Do I know that as fact... no... so I did not state it as a fact. Interesting concept.
BB should have dissappeared long ago by this dude's predictions. There is no accountability in the bog world so don't trust what you read.
An acquaintance of mine did buy 3 or 4K shares at under $8. so imagine he's thinking about taking some profits. I only have a 200 or so since I last took profits... It has been a gold mine for the astute investor though, no doubt about that..
The nuts of the quarter report is that BB showed a huge reduction in the cash burn rate and those people projecting a line out to when the company would be out of money now see that things have changed. Companies die when they run out of cash and BB looks to have some serious time left now even if things don't continue to improve.
I might have done even better on this stock if I did... lol
darb?
Man I'm getting old..:-\
Just a guess but... perhaps BBRY will see a rise to around $10.50 in the next few days then consolodate to form a cup and handle. The volume spike on the rise is typical for a cup and handle. So maybe it'll drop back to $9.00-9.50 then jump again to $13ish. Maybe even on the intra day it'll try to fill the gap down to $8.50... but that gap fill isn't really a must just a tendancy and that's a bit far down to go for a typical handle.
Just guessing in advance so I can maybe brag later, I just dable in this stuff.
You sound like you do more than dabble...
lol blackberry
So well put. I am in awe.
Gotta be aware of where it comes from. No understanding of profits to be made. Bet he wasn't smart enough to buy at $6+. Follow the lemmings, follow the lemmings...
I used to sell drugs, I'm well aware of the process of profiting from buying things for cheap, and selling higher, thanks.
here's a question for you guys:
Where do u see rim 2 years from now? Are they developing anything new and innovative, instead of playing catch up and showing up a year late with stuff Thats already been on the market?
I personally hate the company for Fucking over family from their incompetence, poor product, and lack of development.
If u can project bb growing , I'm all ears .
Apple is a giant and pwns the market, and even they are partnering with companies like IBM to bring users innovation and apps to make life easier. Specifically the business market, which is the only real thing BlackBerry had going for them.