Why not ask the company. I am certain one of the Officer/Directors will respond and maybe even McEwen himself will follow up.
As I see it, part of the problem had nothing to do with either US Gold or Minera Andes -- they both got hammered at the same time and during that period almost all the junior mining related companies got hammered. In the case of the two companies you refer to however, this was a deal announced maybe six months before it was legally concluded. The SEC has strict rules regarding promotion during the period leading up to the merger, and that hurt both stocks. Then the shareholders of Minera Andes were upset they were not receiving a premium from US Gold as the perceived acquisitor. Then there was the lawsuit filed against Minera Andes, which introduced a lot of rhetoric in the month leading up to the special meeting of shareholders.
After I wrote up what I believed were the facts in mid-December, the stocks started to lift a bit, but not as much as after the New Year, which happened as the price of gold, silver and copper started to rally.
All in all, I'm still surprised these stocks took the beating they did. But I do know that once the deal was legal and precious metals on the rise, there was no reason for MUX to act any different than its peer group. The market will now want to see the merger benefits outlined by Rob McEwen, and I think they will.
Again, though, I recommend you contact the company if you wish to pursue the discussion. You have a legitimate question and as a shareholder you should expect an answer.
With the recent financings and royalty deal, the company is getting set for the long-run. I hold a small 1.5% portfolio weighted position with an ACB of $3.92. This financing at C$4.10 net to the company virtually assures I'll make money on the position. With any weakness, traders ought to feel comfortable buying the dips below $4.00. In fact, on my blotter before this deal I had $3.90 as my new enter level, and I was prepared to take the weighting as high as 6.0%. I'm not super excited about the CEO, but when broker-dealers and other mining companies keep writing cheques like they have, I must defer to their expertise here.
As for me, I trimmed the US Gold and Minera Andes totals from about 15% to 10.1% portfolio weighting about the same time you were selling -- a point I made in the blog. I did it for prudent risk management.
I remarked in the WIR that my Junior metals performance was +26.0% YTD and ended with 90.6% invested and 9.4% cash. I had a very good end of the week. For January, the template account was up +20.41% vs the GDXJ benchmark up +11.94%.
Some time ago I decided it was prudent to diversify from all gold and silver into a smattering of other metals like copper, iron ore and titanium. These make up 13.9% weighting of the 90.6% invested.
Last week Jim Rogers pointed traders to iron ore and the prices of AGI.V and CO.V moved a lot higher.
Central banks flooding liquidity into markets will lift most prices, but their policies of maintaining artificially low interest rates for a couple more years, plus the soft earnings guidance from the economically sensitive Industrial companies due to the tough economic times, leads me to favor Financials and Miners. Being unwilling to invest much in Financials until their issues are resolved, I zeroed in on the Miners, mostly gold and silver where the cash flows are accelerating, and in the juniors where their resources are expanding quickly.
Also, normally the non-precious metal companies (e.g., copper-based miners) might be held back by economic hurdles, but in the case of the non-producing juniors, the name of the game is resource expansion and progress toward economic feasibility and mine development. That's why I like the few non-precious metal stocks I hold in the junior metals portfolios.
None of this is news but a few of you have written to say you were astounded by the YTD performance and I thought it best to add some commentary. Hopefully, the Client Monthly Report gets published later today.
Analyst Colin Twiggs is confirming a US Bull market is underway. He says:
Dow Jones Industrial Average broke resistance at 12800, joining the Nasdaq 100 above its 2011 high. All four major indices display a primary up-trend, collectively signaling a bull market. Rising 13-week Twiggs Money Flow indicates medium-term buying pressure on the Dow and target for the initial advance is 13400*… The S&P 500 is a little way behind, but rising 13-week Twiggs Money Flow indicates buying pressure. Breakout above 1370 is likely to confirm an advance to 1450*… The Nasdaq 100 index followed through above 2500, confirming the primary up-trend, while rising 13-week Twiggs Money Flow indicates medium-term buying pressure… Target = 2650… Dow Jones Transport Average is also in a primary up-trend; and headed for a test of resistance at 5600. New highs on 13-week Twiggs Money Flow indicate long-term buying pressure.
At the center of the squabbling are e-mails sent by top executives at MF Global — communications that have been withheld from federal authorities, according to the people briefed on the matter. Investigators suspect the e-mails, sent just before the firm collapsed, contain clues about who transferred the money from protected customer accounts.
Neither have I, but Romney has a pretty fair lead.
The majority of those who have voted for the candidates to this point believe he is unelectable and I think his age (76) has something to do with that. At 80 in 2016, he'd be that far off the voters' radar.
Ron Paul is being strongly favored by people who have an interest in social equity, including today's youth who see how their parents and grandparents have screwed things up in pursuit of the almighty dollar.
We all know that RP would abolish the Fed, and most of us like that, and I think most of us like his support for reducing the size of government, but I think he'd do us all a favor if he campaigned more on policies that would see Humungous Bank & Broker (HB&B) become many competitive banks and brokers. The Citigroup one-stop shop model proved to be an abysmal failure. In addition to reverting to Glass-Steagall, which was repealed in 1999 causing the global financial system to eventually collapse, we need to see the top four banks and brokers become a highly competitive top 20 or top 40. Now that's what I'd like to hear RP promote on the campaign trail.
Only in countries like maybe India and China would they elect an 80-year old.
Not saying it shouldn't be done, but I don't know too many "pretty boys (or girls)" at that age, which seems to be top-of-mind at the voting booth in America.
Here's an advance look at the wrap-up to the WIR that will be out mid-day Sunday:
You know, I like the way the US Presidential election is shaping up: Romney vs Obama. I have serious concerns about both these candidates, but whereas Obama showed his true character after his election (i.e., puppet to Wall Street), we don’t yet know how Romney will run the Office if given the chance. I have been extremely impressed by Dr. Ron Paul – he did an excellent interview with Piers Morgan on CNN on Friday – but don’t think he can raise the money that Romney can to put him into the Show.
Paul and Romney however seem to be unwilling to upset the other with unwarranted negatives so hopefully they can combine their policies or possibly even work as a slate against Obama, who we all know will be a formidable candidate given that the US economy appears on the mend and the fact he is so well funded from Wall Street.
All in all, I’m looking forward to this election more than any other for many years.
As for the future of America, I believe that Ron Paul’s platform, if implemented, would resolve the financial system instability problems, which is needed as a base for a strong economy. While the process will not be quick, only because Wall Street money is driving both party campaigns, the next five years ought to be considerably better than the past five years both for the US economy and the equity market.
The primary driver is America’s basic need to survive its catastrophic failures in government, banking and business leadership and regulatory matters and the great enabler today is the Internet-driven social connecting of the American people. So, regardless who wins the White House and the Congress this year, the pressure from the people will continue to build until they are accepting of a new system of social equity from the govt, banking and business leaders. As I see it, anyway.
My concern has always been the deliberate lack of transparency so that insider-trading deals can go unnoticed. America is supposed to be the most transparent of leading economies and yet there is a veil of secrecy over the Fed and much of Wall Street. That's why I have never accepted the appropriateness of SROs (self-regulatory organizations) when it comes to money. We need to audit the Fed or better still eliminate it and eliminate all these public-private sector partnerships. We need the SEC to report monthly to Congress. We need to uncover the whole business of lobbying in Washington. I'd like to see a President with the courage to run on such a platform.
http://jessescrossroadscafe.blogspot.com/2012/02/m...
The SEC and Congress itself must know that the integrity of the global capital market is at stake over this issue.
Ventilation Blues,
Why not ask the company. I am certain one of the Officer/Directors will respond and maybe even McEwen himself will follow up.
As I see it, part of the problem had nothing to do with either US Gold or Minera Andes -- they both got hammered at the same time and during that period almost all the junior mining related companies got hammered. In the case of the two companies you refer to however, this was a deal announced maybe six months before it was legally concluded. The SEC has strict rules regarding promotion during the period leading up to the merger, and that hurt both stocks. Then the shareholders of Minera Andes were upset they were not receiving a premium from US Gold as the perceived acquisitor. Then there was the lawsuit filed against Minera Andes, which introduced a lot of rhetoric in the month leading up to the special meeting of shareholders.
After I wrote up what I believed were the facts in mid-December, the stocks started to lift a bit, but not as much as after the New Year, which happened as the price of gold, silver and copper started to rally.
All in all, I'm still surprised these stocks took the beating they did. But I do know that once the deal was legal and precious metals on the rise, there was no reason for MUX to act any different than its peer group. The market will now want to see the merger benefits outlined by Rob McEwen, and I think they will.
Again, though, I recommend you contact the company if you wish to pursue the discussion. You have a legitimate question and as a shareholder you should expect an answer.
davler,
With the recent financings and royalty deal, the company is getting set for the long-run. I hold a small 1.5% portfolio weighted position with an ACB of $3.92. This financing at C$4.10 net to the company virtually assures I'll make money on the position. With any weakness, traders ought to feel comfortable buying the dips below $4.00. In fact, on my blotter before this deal I had $3.90 as my new enter level, and I was prepared to take the weighting as high as 6.0%. I'm not super excited about the CEO, but when broker-dealers and other mining companies keep writing cheques like they have, I must defer to their expertise here.
But it's not what it appears to be. Overall, the group is strong, but, beware of the very low value of some of this trading.
Grym,
Since you happen to be a Cubs fan, here are a couple photos of my granddaughter's visit to Chicago.
In the first one, she's waiting for the fans to show up at Wrigley.
The second photo shows her disappointment at being carded and removed by one of Chicago's finest.
http://www.theglobeandmail.com/report-on-business/...
Some insights into the man's personality...
http://www.canadianorebodies.com/s/NewsReleases.as...
Hot off the press, the data in this initial NI 43-101 Iron Resource Estimate is outstanding, and underlies my continuing faith in the company.
FD: My junior metals portfolio holds a 5.4% weighted position in CO.V.
blackbeard2,
You are no pirate! You just used common sense.
As for me, I trimmed the US Gold and Minera Andes totals from about 15% to 10.1% portfolio weighting about the same time you were selling -- a point I made in the blog. I did it for prudent risk management.
I remarked in the WIR that my Junior metals performance was +26.0% YTD and ended with 90.6% invested and 9.4% cash. I had a very good end of the week. For January, the template account was up +20.41% vs the GDXJ benchmark up +11.94%.
Some time ago I decided it was prudent to diversify from all gold and silver into a smattering of other metals like copper, iron ore and titanium. These make up 13.9% weighting of the 90.6% invested.
Last week Jim Rogers pointed traders to iron ore and the prices of AGI.V and CO.V moved a lot higher.
Central banks flooding liquidity into markets will lift most prices, but their policies of maintaining artificially low interest rates for a couple more years, plus the soft earnings guidance from the economically sensitive Industrial companies due to the tough economic times, leads me to favor Financials and Miners. Being unwilling to invest much in Financials until their issues are resolved, I zeroed in on the Miners, mostly gold and silver where the cash flows are accelerating, and in the juniors where their resources are expanding quickly.
Also, normally the non-precious metal companies (e.g., copper-based miners) might be held back by economic hurdles, but in the case of the non-producing juniors, the name of the game is resource expansion and progress toward economic feasibility and mine development. That's why I like the few non-precious metal stocks I hold in the junior metals portfolios.
None of this is news but a few of you have written to say you were astounded by the YTD performance and I thought it best to add some commentary. Hopefully, the Client Monthly Report gets published later today.
Analyst Colin Twiggs is confirming a US Bull market is underway. He says:
Dow Jones Industrial Average broke resistance at 12800, joining the Nasdaq 100 above its 2011 high. All four major indices display a primary up-trend, collectively signaling a bull market. Rising 13-week Twiggs Money Flow indicates medium-term buying pressure on the Dow and target for the initial advance is 13400*… The S&P 500 is a little way behind, but rising 13-week Twiggs Money Flow indicates buying pressure. Breakout above 1370 is likely to confirm an advance to 1450*… The Nasdaq 100 index followed through above 2500, confirming the primary up-trend, while rising 13-week Twiggs Money Flow indicates medium-term buying pressure… Target = 2650… Dow Jones Transport Average is also in a primary up-trend; and headed for a test of resistance at 5600. New highs on 13-week Twiggs Money Flow indicate long-term buying pressure.
http://thetrustadvisor.com/headlines/mf-global2
At the center of the squabbling are e-mails sent by top executives at MF Global — communications that have been withheld from federal authorities, according to the people briefed on the matter. Investigators suspect the e-mails, sent just before the firm collapsed, contain clues about who transferred the money from protected customer accounts.
Are we looking at perjury here as well?
All, here are my shipping monitors:
Shipping – Dry Bulk
NYSE:BALT, NYSE:DSX, NASDAQ:DRYS, NASDAQ:EGLE, NYSE:EXM, NASDAQ:FREE, NYSE:GNK, NASDAQ:GLBS, NYSE:NM, NYSE:NMM, NYSE:PRGN, NYSE:SB, NASDAQ:SHIP, NASDAQ:SBLK, NASDAQ:TBSI
Shipping – Tankers
NYSE:ANW, NYSE:DHT, NYSE:FRO, NYSE:NNA, NYSE:NAT, NYSE:OSG, NYSE:STNG, NYSE:TOO, NYSE:TK, NYSE:TNK, NASDAQ:TRMD, NYSE:TNP
Shipping – Containers
NYSE:ANW, NYSE:DHT, NYSE:FRO, NYSE:NNA, NYSE:NAT, NYSE:OSG, NYSE:STNG, NYSE:TOO, NYSE:TK, NYSE:TNK, NASDAQ:TRMD, NYSE:TNP
Shipping – LNG, PNG
NASDAQ:GLNG, NASDAQ:GMLP, NASDAQ:GASS, NYSE:TGP
Shipping – Mixed Fleet
NASDAQ:ESEA, NASDAQ:VLCCF, NYSE:SFL, NASDAQ:TOPS
tbar,
Re: "I wont rule RP out at this pt"
Neither have I, but Romney has a pretty fair lead.
The majority of those who have voted for the candidates to this point believe he is unelectable and I think his age (76) has something to do with that. At 80 in 2016, he'd be that far off the voters' radar.
Ron Paul is being strongly favored by people who have an interest in social equity, including today's youth who see how their parents and grandparents have screwed things up in pursuit of the almighty dollar.
We all know that RP would abolish the Fed, and most of us like that, and I think most of us like his support for reducing the size of government, but I think he'd do us all a favor if he campaigned more on policies that would see Humungous Bank & Broker (HB&B) become many competitive banks and brokers. The Citigroup one-stop shop model proved to be an abysmal failure. In addition to reverting to Glass-Steagall, which was repealed in 1999 causing the global financial system to eventually collapse, we need to see the top four banks and brokers become a highly competitive top 20 or top 40. Now that's what I'd like to hear RP promote on the campaign trail.
... is up.
Enjoy the game tonight. I'll be watching.
Les,
Re: "Ron Paul for 2016",
Only in countries like maybe India and China would they elect an 80-year old.
Not saying it shouldn't be done, but I don't know too many "pretty boys (or girls)" at that age, which seems to be top-of-mind at the voting booth in America.
dfinvest,
Here's an advance look at the wrap-up to the WIR that will be out mid-day Sunday:
You know, I like the way the US Presidential election is shaping up: Romney vs Obama. I have serious concerns about both these candidates, but whereas Obama showed his true character after his election (i.e., puppet to Wall Street), we don’t yet know how Romney will run the Office if given the chance. I have been extremely impressed by Dr. Ron Paul – he did an excellent interview with Piers Morgan on CNN on Friday – but don’t think he can raise the money that Romney can to put him into the Show.
Paul and Romney however seem to be unwilling to upset the other with unwarranted negatives so hopefully they can combine their policies or possibly even work as a slate against Obama, who we all know will be a formidable candidate given that the US economy appears on the mend and the fact he is so well funded from Wall Street.
All in all, I’m looking forward to this election more than any other for many years.
As for the future of America, I believe that Ron Paul’s platform, if implemented, would resolve the financial system instability problems, which is needed as a base for a strong economy. While the process will not be quick, only because Wall Street money is driving both party campaigns, the next five years ought to be considerably better than the past five years both for the US economy and the equity market.
The primary driver is America’s basic need to survive its catastrophic failures in government, banking and business leadership and regulatory matters and the great enabler today is the Internet-driven social connecting of the American people. So, regardless who wins the White House and the Congress this year, the pressure from the people will continue to build until they are accepting of a new system of social equity from the govt, banking and business leaders. As I see it, anyway.
My concern has always been the deliberate lack of transparency so that insider-trading deals can go unnoticed. America is supposed to be the most transparent of leading economies and yet there is a veil of secrecy over the Fed and much of Wall Street. That's why I have never accepted the appropriateness of SROs (self-regulatory organizations) when it comes to money. We need to audit the Fed or better still eliminate it and eliminate all these public-private sector partnerships. We need the SEC to report monthly to Congress. We need to uncover the whole business of lobbying in Washington. I'd like to see a President with the courage to run on such a platform.
Calling Ron Paul.
Grym,
As you know, Marshall McLuhan had something to say about this interesting subject.
http://en.wikipedia.org/wiki/The_medium_is_the_mes...
What are you looking for specifically?
Obviously by googling, you'll come up with a ton of info on the subject.
I was sent this link for those who want to keep up with the MF Global bankruptcy matter: http://mfgfacts.com/