Do the Shorts Know Something You Don't?
Giving new meaning to "deep value"
Another rising star among gold miners is Northgate Minerals, which operates three mines in Canada and Australia, with another one under construction. On a relative basis, Northgate's enterprise value-to-reserve ounce is cheap when compared to peers like Aurizon Mines (NYSE: AZK) and New Gold (NYSE: NGD). With analysts expecting a 44% annual jump in earnings over the next five years, its future prospects look pretty bright. CAPS member Arize attributes its current low price to the company's lack of respect from investors:
While many investors focus on near-term declines in gold production, the key here is recent Canadian approval of the development of huge gold deposits at a Northgate project called Young-Davidson in Ontario.
Production should start in the first half of 2012 and fully ramp up by 2014. This plus other projects could raise profits and make this stock double or more.
[url] http://www.fool.com/investing/general/2010/11/23/do-the-shorts-know-something-you-dont.aspx [/url]
4 Winners for Your Watchlist
As the defense industry has been beaten down, the price of gold has soared, making miners look more attractive given their huge leverage to the price. Andrew thinks there's still room for gold to run and sees a lot of value in mining stocks, many of which have not risen as much as gold over the past few years.
The key is to find the Goldilocks miner -- you don't want a little one that is based on a blend of hope and prayers, but you also want to avoid the big ones that no longer have room for growth. Andrew sees Northgate Minerals (AMEX: NXG) as just right.The company is producing cash yet still has room to grow. Andrew anticipates a weak 2011 as the company ends work on its main mine and doesn't get started on its next key project until 2012, but that should provide a great buying opportunity for Northgate. It's lagged metal prices so far, but we could see a nice run-up as the company picks up steam.
[url] http://www.fool.com/investing/general/2010/11/18/4-winners-for-your-watchlist.aspx [/url]
[color=Blue]And yet we are guaranteed to receive $4.67/share unless someone comes in with a much higher offer. I'd be willing to sell today for $4.60/share but there is not a snowball's chance of me selling for a $0.37/share discount!
[url] http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_N/threadview?m=te&bn=24970&tid=138220&mid=138220&tof=2&frt=2#138220 [/url][/color]
it doesnt matter what AUQ is at on the sale date..... its the 20 day movng avg ending Friday....
Under the terms of the Agreement, AuRico will acquire all of the issued and outstanding common shares of Northgate on the basis of 0.365 AuRico common shares per Northgate common share. Based on both companies' 20-day volume weighted average prices on the Toronto Stock Exchange (TSX) ending on August 26, 2011, the exchange ratio under the offer represents a 45% premium to Northgate's shareholders.