Loading ...MUX – continuing its positive divergence from gold
McEwen Mining – MUX is continuing to diverge from gold and other PM miners. Rob McEwen, the man who took Goldcorp from a 50 million mkt cap to 10 billion mkt cap before Ian Telfer and co came in and ruined the company, owns 25 percent of the shares outstanding. In November he began buying shares personally and on a massive scale. He has purchased 1.4 mln shares himself in the last month. He needs to get the share price over 1$ on average for 30 days to maintain the company’s NYSE listing. The company also instituted a 15 mln share buyback, a 1 cent per annum dividend, and made Rob the CFO. There is no way Rob will let the company be delisted and he has a ton of firepower in the form of his own purchases and the 15 mln shares the company can buy. There is ONE constant in the gold mining industry… ONE. And that is to bet on Rob McEwen. I have been accumulating this stock and will continue to buy more. The company has 13 percent of the market cap in cash and no debt. There is 5 mln in debt but it is tied to a tax receivable so there is really no debt… and the treasury is growing.
Thanks Cashcosts
One thing I just noticed about MUX….when she goes…she GOES
10 bagger anyone ?
https://stockcharts.com/h-sc/ui?s=MUX&p=M&yr=18&mn=10&dy=0&id=p29217716493
By my count, there are 28 miners with current quotes under $1 per share on US exchanges. None of these are pink sheets. I doubt they are Nazdaq. Aren’t they all NYSE (which merged with AMEX), and if so, how can so many stay listed as pennies for so long?
I have noticed some de-listing notices affecting miners recently, so I know it happens.
But how are the others escaping?
I’ve asked myself this same question but I don’t know why. Unless it is because MUX is actually listed as primary the NYSE, while the other issues may be AMEX and or American Depository Receipts?
Agree, McEwen is one of the guys to keep track of. And if I remember correctly I think he has a substantial amount of MUX´s cash in bullion.
MUX.TO has a nice inverse h&s going on on daily.
Btw, welcome!
when I tried to buy MUX at Schwab I got this warning:” Please note that the issuer of this security is deficient in meeting the Exchange’s continued listing requirements. You may want to consider doing further research”. Does a company that has been de-listed from a major exchange go to a “ink sheet” company automatically?
Cashcosts, You might want to check into this, but like Carolynsue said, they are in danger of being delisted from the NYSE. In response, McEwen has indicated that it will be using stock buy-backs to boost the share price above the $1.00 per share threshold. Keep that in mind when watching this stock go up while everything else in gold mining is down.
“As part of our continuing effort to create shareholder value, we have been working diligently on measures to help support the share price including:
…Initiating a share buy back program whereby we can repurchase up to 5% of common stock over the next twelve months.”
Yes. I’m well aware of the delisting issues. I alluded to it pretty clearly in the initial post???? The company won’t be delisted yet. They have 6 months until the annual meeting and can then announce a reverse split if approved by shareholders. The NYSE gives them this time because a reverse split has to be approved at a meeting of shareholders. If Rob can get the share price to average over 1$ for 30 days between then and now, the listing remains. If not, reverse split. He’s bought 1.4 mln shares since November. Some days he personally has been buying 200,000 shares. This seems to be the reason for the positive divergence, but who knows when he stops buying and when the company starts/stops? There is a lot of potential firepower here.
Cash, Thanks for the MUX piece. Can’t maximize the chart.