There’s room for Every-frickin’-body!
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It’s quite likely I’ll be busy today, so I wanted to throw a couple of brontosaurus burgers out there for your barbecuing pleasure in case things get all jiggy like yesterday.
‘Cause, make no mistake, we are entering into primo deal season here, if all of my bidness (sic) radar array are working in proper function. My group is busier than a one-armed Palo Alto Perma-Bear at a self-congratulatory back-patting contest, and if the middle markets are moving, then I’m going bet the big boys have more cooking than just Uncle Warren’s Train Set purchase yesterday.
For one example, look for deals in the edumacation business, for one thing — companies like Apollo Group, Inc. [[APOL]] and DeVry Inc. [[DV]] and Career Education Corp. [[CECO]] have all been beneficiaries of a sea change in education delivery in the last decade or so.
However, I think the paradigms are going to change even more drastically going forward. I am getting this intuition from the myriad start-ups and later stage deals I am seeing in this space over the last 12 months. As a result, I’d look for tuitions at all but the most exclusive post-secondary schools to come down in the very near future. As a father of four near-genius children, I couldn’t be more pleased.
That aside, I think there’ll likely also be acquisitions in the Precious Metalspace as well, as the various hedged and non-hedged behemoths squat and mark their territories by gobbling up junior miners with promising cargoes of “ounces in the ground.”
To my chagrin, I have no insight from an M&A perspective, as the majority of that deal making occurs north of our borders in the frozen outbacks of Canuckistan, completed by cigar-puffing investment bankers wearing snow-blindness goggles and polar-bear fur pantsuits.
Therefore, I can only point you out the promising junior and middle sized firms that may be in the snowmobile screens of various behemoths like Barrick Gold Corporation (USA) [[ABX]] , Newmont Mining Corporation [[NEM]] , Goldcorp Inc. (USA) [[GG]] and AngloGold Ashanti Limited (ADR) [[AU]] . These include:
Golden Star Resources Ltd. (USA) [[GSS]]
IAMGOLD Corporation (USA) [[IAG]]
Eldorado Gold Corporation (USA) [[EGO]]
Silver Wheaton Corp. (USA) [[SLW]]
[[CDE]]
Hecla Mining Company [[HL]]
Exeter Resource Corp. [[XRA]]
[[BAA]]
Ivanhoe Mines Ltd. (USA) [[IVN]]
[[EXK]]
[[PAAS]]
Silver Standard Resources Inc. (USA) [[SSRI]]
Compania de Minas Buenaventura SA (ADR) [[BVN]] ———->>>> note: this one can be an acquiror or an acquiree, given it’s geographic interest.
and of course, the “catch all” — [[GDX]] .
There are quite a few more that I’ve left off as I’m rushing, so feel free to add your own, and I may or may not add or comment on those later.
Best to you all, and one last thing: beware the bear traps — and those calling petulantly from within them.
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Update: In a shocking and unexpected move the dollar is down again [[UUP]] .
Who could’ve seen it? Heh.
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“My group is busier than a one-armed Palo Alto Perma-Bear at a self-congratulatory back-patting contest”
Clever.
Crap! I sold ABK out at over $1.70 a month or so back and completely forgot to look at it again…
MUCH to my chagrin.
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Quite.
(still own it, bot more about 2 weeks ago at $1.25)
I guess i should also say i still own two (three?) BIG pieces of shite that hopefully rebound, CVM and ABAT…i’ve vowed not to take a losses on…which prolly means i will own them for life or at least until they hit $0.00.
CVM showed some life yesterday… I grabbed about 6k at 1.05 for a “starter.”
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hahhahha.
Just so I get it, you think there could be takeover stuff happening in that education field?
I like the put premiums on SLW but I’m not good at buying after 9% jumps so I think I’ll just wait. If I miss out so be it, I have plenty of material and energy plays going on at present.
Good post
from my perspective AUY and ANV will not be around in the next 12 months…ABX and KGC likely bidders for AUY, they both need to grow reserves, and KGC has stalled out in Brazil on the Paracatu project so they need more producing assets in places like Brazil and Argentina to diversify away from Russia and Ecuador…AUY fits in nicely, they have cleaned up all their issues sold off non core assets and are primarily in Argentina and Brazil, which are friendly mining places..ABX would also make sense as they need more ounces and AUY fits in nicely with portfolio…………ANV is backed by one of the smartest guys in mining, Bob Buchan, he will sell if the price is right, ANV would be a good fit for ABX or especially NEM who raised $2bn of debt to make acqusitions in Nevada, alot of synergies for NEM as they have a big facillty that they could process ANV output…i would think once ANV shows they can produce some decent ounces, they will get rerated and then likely get taken out
Concur with respect to AUY,,,Gobbled-up in due time!
MFN looks Ripe for the pickings as well.
(Note to file) Aforespeaking “RHILL TRADER” is one of those black-goggled, polar bear-skin pantsuit wearing Canuckistanian metal investment bankers….
So you should listen to him!
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I don’t know how I left ANV off there, btw… brain fart.
As for AUY, I consciously left them off as I believed they might as easily by acquirors.
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Nice Job!
My bad Jake, This is The Mr T gold indicator.
http://www.minyanville.com/articles/index.php?a=15012
Oy, that’s kind of embarrassing, no?
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jake thx for the description…im more into clubbing seals to piss off PETA..lol…for any peeps who trade canadian juniors, the best plays are in colombia…high grades, hasnt been drilled like swiss cheese given past turmoil in country, good pro business government that has gotten rid of alot of the leftists and insurgencies…plays like ventana, galway and greystar…same goes for oil plays..alot of good ones run by expat venezuelans with track records who have gone to colombia to escape Obama’s buddy chavez…Pacific Rubiales is the best of the lot..amazing company…i mentioned it on PPT a while back at $5
Are any of those traded on the US exchanges, like AMEX?
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not yet…Pacific Rubiales is followed by JP Morgan but only trades on TSX, they just raised about 400m in debt with BofA Merrill…wish it was trading on Amex as gets better following…some of them will be listing on Colomiban bolso as colombian fund managers have no listed alternatives other than Ecopetrol (EC-New York) and its a big integrated, so they all buy it and bid it up…interesting that EC trades at a premium to alot of other global majors…so alot of these cdns want to get some multiple arrbitrage by listing there…alot of good stuff in Colombia, good royalty regime that won’t screw companies over as they need to increase production so as not to become a net importer of oil…mkt cap about $3bn, other ones i own are smaller and more speculative
Regarding Canuckistan buyouts, checkout Oromin,OLEPF (OTCBB). 3 million ounces in the ground and drills still spinning with updated pre-feasibility in 2Q/2010. IAMGOLD already owns 17% but Randgold & others probably also interested. Management are geologists not salesmen so stock still very much under the radar.
Senegal neighbor Mineral Deposits (MDL – Australian Stock Exchange) has 3.5 million ounces and is in production. Will probably be taken out at or near same time as Oromin.
Grazie.
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Yipes! I just looked at the volume on that sucker…. 17,000 shares traded at 85 cents!
THat’s not enough to buy a KIA!
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Very true, but like I said management is great at finding gold but inept at telling their story in a way that generates interest in the stock. Trades more in Canada on Toronto exchange than in the U.S. Otcbb.
When they prove up 4 or 5 million ounces and they definitely will, they will get noticed in spite of management including probable buyout.
This is very recent:
http://www.oromin.com/i/pdf/CorporatePresentation.pdf
CDE news, courtesy of the PPT:
CDE Coeur d’Alene Mines reports approximately 40% increase in both silver and gold reserves in expanding Palmarejo District (22.07 -0.13) Co announces that an approximately 40% increase in silver and gold reserves at its Palmarejo silver and gold mine in Chihuahua, Mexico, to a total of 88.6 mln ounces of silver and 1.1 mln ounces of gold, based on its ongoing drilling at the nearby Guadalupe deposit. The 25.8 mln ounces of new silver reserves and 315,000 ounces of new gold reserves represent the initial underground ore reserves at Guadalupe, located approximately 6 kilometers southeast of the current Palmarejo mine and processing facilities. The Company plans to continue drilling at Guadalupe and anticipates commencement of underground development of Guadalupe’s reserves in 2010. Ore from Guadalupe would then be expected to begin contributing to Palmarejo’s silver and gold production in 2011. At the Palmarejo project there were 63.6 mln ounces of silver reserves and 756,000 ounces of gold reserves reported at the beginning of this year.”.
Up + 1.26% after hours.
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In not so good ANDE news, again courtesy of the PPT:
“ANDE Andersons misses by $0.30, misses on revs (29.99 -1.94) Reports Q3 (Sep) earnings of $0.07 per share, $0.30 worse than the First Call consensus of $0.37; revenues fell 33.7% year/year to $601 mln vs the $691.6 mln consensus. “We are disappointed overall with this quarter’s results, which we would characterize as a mix of areas of continued concern, and some positive developments. Most significantly, our Rail Group continued to be seriously impacted by the overall weak economy. To a lesser extent our Retail Group was also impacted by the economic decline. Conversely, while our Grain & Ethanol Group’s results for the quarter were lower than that of the prior year it was nice to see decent margins return to the ethanol business and Lansing Trade Group return to profitability…”
Getting buttocks strangled in the after-hours — down 13.84%.
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But there is no room on that train.
Not even in the Slumdog Millionaire section.
Jake, your “Metal Mania” months ago inspired me to buy a little bit of EGO and RGLD, meaning to add to it. Been busy, but just checked and I’m up 21.47% and 7.25% respectively. Would have been more substantial an amount had I been paying attention.
Thanks!
Don’t know any Palo Alto perma-bears, however. I know a couple of VCs down there who are starting to invest again, tho. We are generally optimistic out here on the left coast, despite all evidence that we are, in fact, going to hell.
Must be the drugs.
You see that story about the 10% withholding?
What gigantic, gigantic balls.
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nice results by GG, upped production estimates and lowered cost estimates…also Penasquito in Mexico ramping up ahead of schedule (rarely happens with miners)…this should be good for SLW as they are closely tied to GG….nice change from KGC shitshow of last week
Unfortunately, my best performing Jackson, ANDE, will be starring in a feces chucking shitshow all through the end of this week.
Yes, SLW was spun out of GG, and is for the most part just a royalty receiver for their silver production.
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Lament, ye of little Red Back Mining. Up 27% since it was noted by my friend to me, and then graciously passed along to you and yours, gratis. With wild, technical loving swings to profit from, but a strong ‘La Lune(y)’ direction, and a solid likelihood to only go even further into the cosmos. “Ah, me,” they say, ” alas, why did I not listen to that ranting, belligerent, smarmy, red-cheeked northener? Sure it annoys me that he is so much wiser and handsomer than me, but ‘strewth, I should not allow those tears of envy to obstruct my path to filthy lucre, for now I must wallow in miserly sorrow, alack.”