- West Face Capital - Mandalay Resources' top shareholder - will divest 40 million shares through a secondary offering through BMO Capital Markets.
- This will increase supply significantly for a stock that trades 720,000 shares per day.
- With the stock trading near all-time highs and with metal prices weak, this could trigger a sell-off.
- This was unanticipated in January, but I think it can provide an opportunity for long-term investors.
- I am not a buyer at current levels, but I am expecting weakness that could lead to a buying opportunity, and I am a buyer under $0.90/share.