The Gold Report
What if you could tell before a press release comes out that a company
is poised to be bought out, possibly at a nice premium? Sounds good,
right? By watching historic patterns, that might just be possible. The
Gold Report reached out to experts who have been around through enough
cycles to know and asked for the clues they watch that an acquisition
might be imminent. From location and early investment to derisking
levels, you just have to know what to look for to position yourself for a
liquidity event.
There are certain points in market cycles where buyouts just make
more sense than in others. Chen Lin, author of the popular stock
newsletter What Is Chen Buying? What Is Chen Selling, sees a recent
flurry of mergers and acquisitions (M&A) as an indication that we
are, indeed, at the bottom of the gold market and can expect more
consolidation—and at a premium. “We saw the start of a new phase of
M&A happening when OceanaGold Corp. (OGC:TSX; OGC:ASX) bought
Romarco Minerals Inc. (R:TSX), and Romarco shareholders realized a big
premium for that,” he says. Add to that First Mining Finance Corp.’s
(FF.TSX.V) merger with Gold Canyon Resources Inc. (GCU:TSX.V) and PC
Gold Inc. (PKL:TSX). “Investors of those stocks were rewarded
handsomely.” He continues, “A lot of companies with good balance sheets
will try to take advantage of this downturn to pick up properties at
rock bottom prices. This is actually a good time for those companies
that can afford to do M&A.”Continue Reading at TheAuReport.com…
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