Hecla is in a win win situation as they get a property the other company wants badly and if not they get 27 million breakup fee...
If the deal is not doen it will go over 5 easily !
WHITE KNIGHT OFFER
Hecla's C$4.75-per-share offer to acquire Aurizon represents a 9 percent premium to Aurizon's Friday close of C$4.35 on the Toronto Stock Exchange.
"It is a white knight offer. The advantage for Hecla is that it is a friendly offer. It is a superior offer on a cash basis -- $514 million versus Alamos's $305 million maximum cash component. In this market, I suppose, the more the cash the more certainty of the offer," analyst Steven Butler of Canaccord Genuity said.
Aurizon said last month it was in talks with a number of potential buyers.
"Given Hecla's premium offer as well as cash consideration, break fee and Hecla's right to match, we don't believe Alamos will make a counter-offer for Aurizon," analyst Dan Rollins of RBC Capital Markets said.
The agreement gives Hecla the right to match any competing offer and requires Aurizon to pay a termination fee of C$27.2 million.
I think the bottom is in NEM andmost miners hit muti year lows yesterday while ben buys 85 billion per month in treasury and mortage bonds. The rebound is going to be huge imo..
plays a part in this see the full seeking alpha article under GDX headlines
PS: the Blees rating mus have been created for Blievam lol !
Every once in a while, the stars and planets align. To those who notice it, it's an amazing thing. Well, the stars and planets are aligning once again for gold in a way that I do not think will happen again, at least not in my lifetime.
The stars, as I see them, are the following:
4,973 people received this article by email alert
Add your email to get alerts on GDX too:
Get email alerts on GDX »
1) Buying on Weakness - February 28, marked the largest buying on weakness numbers in GLD that I have ever seen at over $88M in net money inflows. Buying on weakness is a sign that institutional money is grabbing up shares from panicked sellers. It is usually large at bottoms. To say $88M is large is an understatement.
2) The Blees Rating - On the COT (Commitment of Traders) report, the Blees rating has reached a 99 out of maximum 100 bullishness rating. Take a look at the charts at the link above, and you'll see that every single time the Blees rating reached these levels, a bottom closely followed.
3) Extreme negative sentiment - according to Sentimentrader, sentiment has reached lows not even seen during gold's 2008 bottom.
(click to enlarge)
3) Capitulation Volume - These two charts are perhaps the most revealing. The first one shows the GLD from 2005 to the present. There are four points worthy of attention here.
Area A depicted blow shows gold's two and a half year stagnation from mid 2006 until the end of 2008. The bull can work off a run for a long time until the next leg up.
Area B shows that not even a year and a half has passed since gold began to stagnate last in September 2011.
Most importantly, notice the volume discrepancies underneath areas A and B on the Google chart below. From the 2006 highs until just before gold's bottom in 2008, trading volume was a trickle. Then came
For those complaining about 500 million borrowing to buy Aurizon think about what this means
500 million pieces of paper to buy something real gold the only real money.
Record low interest rates...
Do you think there will be inflation in the future ?
Do you think it;s a good time to buy miners at record lows with currency that is set to depreciate in the future ?
Do you realize that the fed is buying 1.9 in securities each day while hecla largest silver miner in north america could be bought for 1.3 billion ?
much higher. Think about ben buying 85 billion in mortages every 30 days !
and the largest silver producer in north america with a gold mine now for 1.13 billion ?
5 years from now lets see where it is. This is my insurance policy for what I know is coming...
is what they do right before they greatly increase money supply.
my guess is that the sequester is going to be thrown out and that is when you see the big bounce.
buy low if you feel bad look at my hecla they bought a gold miner and are tanking huge.
This is an exccelent entry point IMO can you imagine the largest producer of silver in north america selling for only 1.3 billion and now they own a gold miner also ?
what a bizzaro world this has become with Fed MANIPULATION !
Big ben is trying to crush the gold and silver miners as he wants you to buy dow index stocks so they can hit a new high
You think you are gettign pounded chec out my hecla. (HL)
they are printing money like no tomorrow but the miners are hittign all time lows.
See gdx gold miners index hit new 52 week lows day after day.
Expectign a monster bounce but when ?
As far as helca largest silver producer in US and just bought gold miner in Canada.
This stock is insurance against a dolalr collapse imo nothigg more.
are all down 5% so the actual trashing for hecla is about 7%...
It's funny but when some big cap stock buys another both stocks go up like compcast buyign ge but the big boys don't want you in godl and silver so they sell on what I perceive to be good news. I don't care buy low be patient this is insurance against the rampant money printing that you know will never end..
thats what I say !
These mergers ALWAYS end up going back up after intial selloff !
Check it out as I did under Aurizon headlines..
That makes this deal a lot easier to take..
Hecla gold mix will make it's value higher and on top of that this mine is in Canads keeping most of helclas production in stable North America...
Buy the dip !
WASHINGTON (AP) — Spending on U.S. construction projects fell in January by the largest amount in 18 months as home construction stalled and spending on government projects fell to the lowest level in more than six years.
The dip was viewed as a temporary setback with construction expected to keep moving higher this year.
Construction spending fell 2.1 percent in January compared with December, when spending had risen 1.1 percent. It was the biggest one-month decline since July 2011, the Commerce Department said Friday.
Residential construction, which has been leading the rebound in building, stalled in January with no gain in activity following a 1.7 percent rise in December.
Non-residential building dropped 5.1 percent while public construction was down 1 percent, pushing activity in the government sector to the lowest point since November 2006.
For all of last year, construction spending totaled $855.4 billion, an increase of 9.9 percent from 2011. It was the first annual gain after five straight years of decline. But construction still well below healthy levels.
Construction activity in 2012 is 26.7 percent below the all-time high of $1.17 trillion set in 2007 at the peak of the housing boom.
apple sales guru is running this ! It proves that he did not know what he was doing at apple but the product was selling itself..
report !
I am amazed tell ben to buy some with taxpayer money...
Demand this stock to rise as all others do !
reflation has only benefited the 1% warren buffoon and the wall st banksters and not the common man
who comprised 70% of the economy. They tell you inflation is 1/10 of a percent last month while gasoline has
risen for 25 days in a row up 20% to 25% in 1 month.. All that money along with soaring food prices is taken out of consumers hands to spend on non essentials which is where target makes most of it's profits...
this fed induced bubble is about to pop as all the money went to wall st and none to the consumer who is 70% of the exonomy !
this environment so far but how long can they last when the consumer who is 70% of the economy has no money to spend ?