Resource Stock Roundup Wednesday September 10, 2008
Sep 10th, 2008 | By Doug Casey | Category: Financial News, Gold MarketThe capitulation of resource stocks continued during Tuesday trading on the Canadian Markets with even cash-rich companies getting dumped by investors.
For the tale of the tape, the TSX Exchange dropped 3.86%, while the TSX Gold Index sank an eye popping 9.3% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, plunged a staggering 8.49%% with the declining issuers swamping the advancers by a 865 to 185 margin on big selling volume of 199 million shares traded.
Rainy River Resources (RR) discovered a new gold zone on its Richardson Township project in northwestern Ontario. Highlights included 2.02 grams gold per tonne over 79.5 metres. Rainy River ended the day down C$0.14 at C$1.86.
Rockwell Diamonds (RDI) has received a hostile C$0.36 per share takeover offer from Pala Investments Holdings Limited. The diamond miner says the offer is “opportunistic” and recommends that shareholders sit tight. Rockwell closed at C$0.33 for a C$0.135 gain.
Shareholders digested the news that Sherwood Copper (SWC) and Capstone Mining (CS) are looking to wed in a deal that would see 1.566 Capstone shares exchanged for each Sherwood share. The end result would be a growth oriented copper miner with two producing mines. Sherwood ended the day down C$0.58 at C$4.06, while Capstone lost C$0.43 at C$2.35.
Lydian International (LYD) cut some nice intercepts from its Amulsar gold discovery in Armenia and managed to get a little love from investors. Highlights included 109 metres running 1.1 grams gold per tonne and 92 metres of 1.4 grams gold per tonne. Lydian ended the day up C$0.04 at C$0.38.
The 1,625 point low for the junior bourse that was hit in mid-2005 has now been breached and the next low is around the 1,500 point mark last encountered in mid-2004. Did we see the final flush of capitulation on Tuesday or is worse set to come? We will see what Wednesday trading has in store.
Source: Resource Stock Roundup Wednesday September 10, 2008
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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.