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Golden Minerals is a junior silver producer with a strong growth profile, listed on both the NYSE Amex and TSX.
Message: Discount stock-buyers
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I read today the article below at Mineweb and was startled by the concept of "discount stock buyer". So here we are, at the absolute bottom of the market and with huge short positions in most mining stocks, and out comes the generous knight (in this case TRC Capital) to offer buying just below 5% of new stock at a discount of 4%.
I guess there must be plenty of "discount stock buyers" around, that first short the hell out of a stock and then make their generous offer to buy 4.9% of the stock at a 4% discount. So, fortunately for Osisko shareholders Osisko rejects the offer, but I can imagine that there are plenty of CFO's of similar company's that are agreeing to such hand-outs and become very rich in the process.
How widespread is this ball game in the mining sector, I ask myself?
looking at this article from the positive side, maybe shorts are seriously looking for ways to cover their short positions and what we are seeing here is a positive indicator for the mining sector.
DCFM
UPDATE: Osisko blasts TRC Capital low-ball offer
TRC Capital's Lorne Albaum says he's in it for the long-run after Osisko rejects the would-be buyer's mini tender.
Author: Kip Keen
Posted: Wednesday , 04 Jan 2012
Discount stock-buyer TRC Capital added Osisko Mining (TSX: OSK) to its sights in a mini tender and, as in other such recent bids, received a quick rejection from its target.
TRC Capital, a Toronto-based firm led by Lorne Albaum, is well practiced in the art of the mini tender: where an offer is made for less than five percent of a company's stock allowing the buyer to avoid certain disclosure regulations.
In TRC Capital's case, the modus operandi is to make such mini tenders at a shareprice discount. According to Osisko, TRC Capital has offered to buy up to five million Osisko shares for C$9.55 a share, a 4.12 percent discount to Osisko's closing shareprice on December 22, the day before TRC Capital made the bid.
It is a level of discount similar to that which TRC Capital has used in a handful of other recent mini tenders. In early November TRC Capital offered C$35.90 for up to three million Teck shares at a 4.85 percent discount. Then, in mid-November, TRC Capital did much the same for United States Steel, again for up to three million shares, and this time at a 4.5 percent discount to the company's closing shareprice the day previous.
Osisko's response to the TRC Capital mini tender was formulaic. As did United States Steel and Teck, Osisko issued a stern warning about the mini-tender, rejected it and noted the discount may be aimed at catching investors unawares.
Osisko, which operates the Canadian Malartic gold mine in Quebec, also highlighted a term typical of discount mini tenders. TRC Capital reserved the right not to follow through with buying tendered shares if, for example, Osisko's shareprice dropped below the offer price.
That gives TRC Capital wiggle room to drop the discount bid if, as the case may be, market winds do not blow its way. But were Osisko's shareprice to fall below the C$9.55 price on offer TRC Capital's Albaum told Mineweb he would not drop tendered shares. "I have no plans to do so unless Osisko's shareprice falls off a cliff or something," Albaum said.
Albaum, who rejected the characterization of the discount as substantial, also said he was after Osisko stock for the longterm, calling the company one of the "best gold plays" out there in a miner that was just hitting its stride.
He argued that the mini tender gave small shareholders with odd lots in the 100-share range a way to sell without having to pay onerous commissions.
It is also worth noting that both United States Steel and Teck are now trading between five and 10 percent above the price of TRC Capital's earlier mini tenders, suggesting Albaum has made savvy calls on stocks that have otherwise dropped heavily in recent months.
These are two positions Albaum said he has held.
TRC Capital, a Toronto-based firm led by Lorne Albaum, is well practiced in the art of the mini tender: where an offer is made for less than five percent of a company's stock allowing the buyer to avoid certain disclosure regulations.
In TRC Capital's case, the modus operandi is to make such mini tenders at a shareprice discount. According to Osisko, TRC Capital has offered to buy up to five million Osisko shares for C$9.55 a share, a 4.12 percent discount to Osisko's closing shareprice on December 22, the day before TRC Capital made the bid.
It is a level of discount similar to that which TRC Capital has used in a handful of other recent mini tenders. In early November TRC Capital offered C$35.90 for up to three million Teck shares at a 4.85 percent discount. Then, in mid-November, TRC Capital did much the same for United States Steel, again for up to three million shares, and this time at a 4.5 percent discount to the company's closing shareprice the day previous.
Osisko's response to the TRC Capital mini tender was formulaic. As did United States Steel and Teck, Osisko issued a stern warning about the mini-tender, rejected it and noted the discount may be aimed at catching investors unawares.
Osisko, which operates the Canadian Malartic gold mine in Quebec, also highlighted a term typical of discount mini tenders. TRC Capital reserved the right not to follow through with buying tendered shares if, for example, Osisko's shareprice dropped below the offer price.
That gives TRC Capital wiggle room to drop the discount bid if, as the case may be, market winds do not blow its way. But were Osisko's shareprice to fall below the C$9.55 price on offer TRC Capital's Albaum told Mineweb he would not drop tendered shares. "I have no plans to do so unless Osisko's shareprice falls off a cliff or something," Albaum said.
Albaum, who rejected the characterization of the discount as substantial, also said he was after Osisko stock for the longterm, calling the company one of the "best gold plays" out there in a miner that was just hitting its stride.
He argued that the mini tender gave small shareholders with odd lots in the 100-share range a way to sell without having to pay onerous commissions.
It is also worth noting that both United States Steel and Teck are now trading between five and 10 percent above the price of TRC Capital's earlier mini tenders, suggesting Albaum has made savvy calls on stocks that have otherwise dropped heavily in recent months.
These are two positions Albaum said he has held.
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