"inca kola news" <otto.rock1@gmail.com>

MAG silver (MVG) (MAG.to) down 2.7% in US trading at U$4.90. I read a Motley Fool article that talked about how the Fresnillo U$4.54 deal was now dead because of the recent price spike, but I think the author (who is long MVG) is a dumbass. Firstly, volume traded has been a fraction of the 49m shares out. Secondly, Fresnillo already owns 19.8% of MVG and another suitor is very unlikely (consider the geography and history and the mere fact the buyer would have to JV with a rather miffed Fresnillo on the project). Thirdly, in the current climate FRES.L won't be in a hurry to expand operations and can wait MVG and its shareholders out while MVG burns its cash and withers on the vine. Fourthly, why should FRES.L pay any more for the mine? It's the only possible buyer of the property in a buyer's market. If I held MVG I'd sell at this premium now and move on.