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Goldcorp will not raise its offer for Osisko Mining

  • Goldcorp (GG +0.8%) officially gives up its bid for Osisko Mining (OSKFF -0.1%), saying it will not raise its offer to acquire the company; its most recent C$3.6B offer will expire tomorrow night before midnight.
  • Yamana Gold (AUY -3.5%) and Agnico Eagle Mines (AEM -3.7%) joined forces last week for a C$3.9B offer to acquire Osisko.
Comments (13)
  • Ninja Trader
    , contributor
    Comments (633) | Send Message
     
    Yeah, and both are getting taken to the woodshed over this. Long AUY and looking for a turnaround today but not holding my breath.
    21 Apr, 01:09 PM Reply Like
  • TheLastSpartan
    , contributor
    Comments (110) | Send Message
     
    I am in the same boat. I am sick of this!
    21 Apr, 01:19 PM Reply Like
  • 360_Degree_View
    , contributor
    Comments (22) | Send Message
     
    That makes three of us. I waited until AUY fell below its old low before buying at $8.04 and now it's trading at $7.48! I understand gold is down but AUY's fall is far greater in percentage terms than that of gold itself. Yamana is a great company and with Osisko's Malartic mine immediately accretive to AUY's earnings I still believe AUY at this price level is a great buy. Who knows, Goldcorp (GG) may end up buying AUY and getting both Osisko's and Yamana's excellent assets at fire sale prices. I'm thinking also the Goldcorp may go after New Gold (NGD), another Canadian mining company that looks remarkably like a junior Goldcorp in the making.
    21 Apr, 06:35 PM Reply Like
  • 6151621
    , contributor
    Comments (1160) | Send Message
     
    They (AUY,AEM) are likely overpaying significantly but selling pressure could be capitulation? The next few days should make this clearer. The only way they aren't overpaying is if gold goes lots higher and the market clearly isn't pricing in this case.
    21 Apr, 01:46 PM Reply Like
  • Paul Mosgovoy
    , contributor
    Comments (113) | Send Message
     
    AUY has broken down and now has a measured move target below the $6.00 level. Downward pressure appears to be intense at this point.

     

    AEM has pressure as well but has not broken below support at the 25.00 - level.

     

    Gold price itself had an out-side-down week last week and that is a significant reversal event. Anything can happen and the "reversal" could get reversed. At this point that looks unlikely.

     

    Maybe the only plus is the daily chart of GLD showing a potential bullish divergence.
    21 Apr, 01:56 PM Reply Like
  • Ninja Trader
    , contributor
    Comments (633) | Send Message
     
    Paul,

     

    AUY may see $6 when final capitulation hits, but not just yet. An accurate blogger is calling for gold to start rising tomorrow towards $1,400 in another mini-rally. GLD keeps bouncing off of 123.60 area in the premarkets over the past week. This is support, so I'm feeling good about AUY in the near term. Hoping the bottom was put in today. Hang in there guys.
    21 Apr, 04:09 PM Reply Like
  • Paul Mosgovoy
    , contributor
    Comments (113) | Send Message
     
    Thanks for the input.

     

    As always....watching the position closely.

     

    For GLD to rise above 133 - 134, it has to get past two weekly reversals (last week and the week of 3/17/14) ....not saying it can't happen but that is a lot of resistance.

     

    I appreciate the head's up.
    21 Apr, 04:54 PM Reply Like
  • King Rat
    , contributor
    Comments (566) | Send Message
     
    Two categories for technicians to stay away from are mining and pharma. Too much goes on behind the scenes for short-term technicals to matter much. My take on gold stocks is that they are long term value plays. If you put in a small portion of your portfolio in these stocks and lock away the keys for five years, you will be rewarded. They may drop by 50% in the mean time but I am talking about fundamentals, not trough digging.

     

    Besides, if we DID talk about technicals in gold, it would be about a the wedge forming that could break up or down.
    21 Apr, 09:48 PM Reply Like
  • Henri DeToi
    , contributor
    Comments (353) | Send Message
     
    I bought Goldcorp and what I wanted was for the takeover to fall through. I had Osisko when the first Goldcorp offer came up and I sold my shares after the upside. Now if only Goldcorp can tread up some more and I'm out of there.
    21 Apr, 02:30 PM Reply Like
  • Siwanoy
    , contributor
    Comments (185) | Send Message
     
    As an AUY fan, I want the Malartic mine as a known dependable asset in the right geography. I want the rest of Ossiska's asset base too. Roosen was caught in a hard place and this was a very lucky opportunity for Yamana. I fully agree with management decisions on this and take the long view.
    21 Apr, 02:39 PM Reply Like
  • 10201211
    , contributor
    Comments (2) | Send Message
     
    This will be a winner for AUY long-term; long-term low cost production of a lot of ounces in a stable country. Look for AUY to liquidate some of their smaller less strategic operations soon, if they can find a buyer.
    21 Apr, 02:51 PM Reply Like
  • evan.prospect
    , contributor
    Comments (687) | Send Message
     
    Takeovers at sub $1300 > takeovers with gold above $1700

     

    Complacency reigns in the markets and I have limit orders to accumulate more AEM and GDX if gold heads down towards were it was in early 2009 (when the Fed's balance sheet was much much smaller).

     

    Have plans to pick up some more SLW if it drops further as well.
    21 Apr, 03:31 PM Reply Like
  • nocnurzfred
    , contributor
    Comments (484) | Send Message
     
    Know how I will vote next time AUY lets us. Would be nice to see more than single candidate choices. If GG could afford to buy Osisko, maybe they can swing a deal to buy my AUY. Damnit!!
    21 Apr, 03:51 PM Reply Like
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