What are the different scenarios that maximize your profits? Should you wait to the last moment to tend your shares? What effect should the price/share have on your pricing of the Dutch auction? Will share price fall or go up after the auction is completed. Will the proposed dividend be announced before the auction closes? What affect will different percentage dividend have on the stock price? Can you buy now and hope to sell at a higher price at the auction? Do you buy Jan calls at the $10 strike and sell shares at $9 in auction. What to do?
Waiting till the last minute may mean you miss the boat. Asking too much may also lead to that. Over time the share price should rise after the auction is completed (fewer shares=more profit per share). Re the proposed dividend: "We will continue to evaluate further opportunities for shareholder friendly initiatives, including our intention to announce a dividend policy in conjunction with the release of our year-end financial results."
BMO Capital Markets reduced its rating on AuRico Gold from Outperform to Market Perform while raising its price target from $9 to $9.50. BMO Capital Markets commented, "The company now trades at a premium to the BMO Research mid-tier gold stocks. The recent sale of Ocampo and the application of the proceeds to reduce debt and buy back shares de-risks the company profile, while increasing the importance of a successful ramp-up of Young-Davidson. … BMO Research expects that the surplus cash may be used in future to redeem the US$167M convertible notes and possibly to establish a dividend policy."