Large amount of shares simply move from one holder to another. Goldcorp gets the cash they want, Macquarie gets the shares they want. Means nothing to us little guys.
Good point aaaaarb.
Loading the boat now... before it's too late! International investors (from France to China) will jump on SLW now more than ever....and in a tough economy in the US, with a possible recession or something even worse silver will go up and up.....some even said "silver will go to the moon!" Well, then SLW will go even higher! It's so undervalued now. Sorry for those who have already left the boat....see you in 2 years: hope you won't fell from your chair when you'll see what you've missed!
Funny, the shareholders on GG board are just as nervous that this is bad for GG or means GG costs are out of control, or has to buyback hedges that GG had to sell a terrific asset cheap.
That this story was obviously leaked to give cover to insiders driving down the price of SLW before the transaction tells you it was all rigged.
That's how the big boys play the game.
Ignore it, average down if you have cash, and hold for the same reasons you've been long SLW. This will be a monster in this bull and the best thing that can happen is the stock moves into strong hands that see the future of this company and will not tender their shares at any price until silver at least breaks into $40s. Not to managers that will take a 30% premium to bump their portfolio performance and annual bonus.
You're right on - Goldcorp "needed the money" and Macquarie found a way to go in for 10 percent off fair value, right off the top. (Or you could say Goldcorp ate a 10 per cent commission). The shares merely changed hands; no real dilution resulted. SLW will be back up to $17 in no time.
We now know where the big boys bought in at though, and that should provide a solid foundation for positive market psychology. It doesn't make sense that these guys will just dump their shares for a buck or two gain in the coming months. The overhang is now gone or at least it's been dispersed and is no longer an issue. Look for upgrades AFTER they pick up their shares.
Mac is not keeping the shares, they are offering them to their clients. I actually received a call at 5:30 today from one of my brokers asking if I wanted some Silver Wheaton at C$14.50 ... I will buy more a bit lower than that price next week IMHO.