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A project so robust that we can mess up and still make a lot of money

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Clavis

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Report from Inca Kola in LatAm

posted on Apr 02, 2009 03:29AM

Inca Kola News, live from LatAm

Thursday, April 2, 2009 12:01 PM

From:

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

MAG Silver (MVG) (MAG.to): Get Real

Posted: 01 Apr 2009 08:42 AM PDT

If you've been following the wheels and deals at MAG Silver (MVG) (MAG.to), you'll know that despite the recent surge in Hope™ for the metals and mining sector the company's stock price has dropped back from the recent U$6+ prices to sit back at the price offered by Fresnillo in December. Here's a chart that wraps up the whole timeline.

click to enlarge

Now let's play Reality Versus Fantasy

Fantasy: Fresnillo is desperate to get its hands on MAG Silver's assets
Reality: It's a bear market. That means it's a buyer's market.

Fantasy: Fresnillo is about to sweeten the bid
Reality: Check the chart.

Fantasy: A rival bid is on the way.
Reality: No company with a sane CEO would make a hostile/white knight counterbid for an asset that it would have to share with Fresnillo afterwards.

Fantasy: January and February share price at MAG Silver
Reality: March and April share price at MAG Silver.

And if you still need a dose of reality after all this, check the comparative chart of MVG versus (my own fave silver play) Fortuna Silver (FVI.v) and the silver ETF (SLV) as a proxy to the metal. Any further questions?