Resource Stock Roundup: Tuesday, February 24th, 2009
Feb 24th, 2009 | By Doug Casey | Category: Financial NewsThere was no place to hide during Monday trading on the Canadian markets as the bears mauled the bulls. For the tale of the tape, the TSX Exchange plunged 3.80%, while the TSX Gold Index dropped 2.8% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, fell 1.56% with the decliners swamping the advancers by a 493 to 310 margin on 139 million shares traded.
Southwestern Resources and Geoinformatics Exploration are looking to merge in a deal that would see Geoinformatics get 0.6 of a Southwestern share for each Geoinformatics share held. Southwestern ended the session down C$0.015 at C$0.235, while Geoinformatics closed unchanged at C$0.18.
On the drill front, cash rich IMA Exploration (AMEX:IMR) tabled the results from the Island Copper project in British Columbia. Highlights included 238 metres running 0.61 gram gold and 0.08% copper. IMA ended the day down C$0.02 at C$0.30.
North American Tungsten added C$0.03 to close at C$0.175 after the company announced that a bankable feasibility study over its MacTung deposit in the Yukon generates an internal rate of return of 23.5% and has a pretax net present value at an 8% discount of $277 million.
Eldorado Gold (AMEX:EGO) is a company to watch, having its shares halted from trading at C$11.64 pending news. Financing or takeover?
Hold onto your hat because it looks like the next leg down has started and the bottom appears to be nowhere in sight. We will see what Tuesday trading has in store.
Source: Resource Stock Roundup: Tuesday, February 24th, 2009
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Doug Casey is a contrarian investor, sought-after public speaker and author of several books. His work "Crisis Investing" held the position of # 1 bestseller on the New York Times list for 26 consecutive weeks. Doug's unusual views on the economy - and just about everything else - have gained a huge following in the investment community, and it certainly helps that his stock recommendations of undervalued junior exploration companies have made his subscribers millions. Now in its 27th year, Doug's monthly newsletter, the International Speculator, is one of the most established and esteemed publications on gold, silver and other natural resource investments. Together with the Casey Energy Speculator, it covers a broad range of carefully selected stocks with the very real potential of double- and triple-digit returns within 12 to 24 months.