Resource Stock Roundup: Wednesday, February 25th, 2009
Feb 25th, 2009 | By Doug Casey | Category: Financial NewsIn a rapid turn of events, it was the gold guys’ turn to get wacked during Tuesday’s trading session on the Canadian Markets. For the tail of the tape; the TSX Exchange added 2.77%, while the TSX Gold Index plunged 9% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, fell 2.88% with the decliners swamping the advancers by a 536 to 265 margin on 154 million shares traded.
The controversial C$762.4 million proposed take over of Lundin Mining (NYSE:LMC) by HudBay Minerals is now over. HudBay officially gave into shareholder revolt by terminating the transaction without either party paying a break fee. HudBay ended the session up C$0.60 at C$5.38, while Lundin dropped C$0.07 at C$0.73.
Eldorado Gold Corporation (AMEX:EGO) announced plans for a C$275 million financing but then abruptly cancelled the offering after failing to get satisfactory terms. Eldorado ended the day down C$1.34 at C$10.24.
Disappointing results from the Tuktu-1, 2 and 3, as well as the Qavvik-4, 5 and 6 kimberlites in Nunavut had shares of Diamonds North Resources fall C$0.14 to C$0.12.
Take profits where you can was the name of the game as gold stocks took one on the chin. On the plus side, energy and financials showed some strength. We will see what Wednesday trading has in store.
Source: Resource Stock Roundup: Wednesday, February 25th, 2009
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.