Loading ...AGI ( Alamos)
This is very disconcerting for the sector IMO.
Alamos is a good company…Mergers and Acquisitions are usually a very good sign in any industry
They bought another very good company RIC ( Richmont)…at a 20% premium.
BUT Alamos is down 16%…that’s ridiculous…and because of that RIC is Not up 20% not 10% Not 5 %
But barely 1%. I sold mine at the open…thanks for the heads up guys.
Point is Who will risk another Merger if this is the new normal.
Fully…Building you a Wall of Worry
Could be a buying opp. I find 95% of people i talk to have no clue what drives the price of gold. Even experienced investors. So could be profit taking + gold being down 1.5% + nobody having any initial clue if the deal is good or bad(waiting on their analysts).
Another good company McEwen mining down 9% today…on nothing as far as I know.
My point is this is Not bull market action…MUX down 9% on Nothing !
buy some of each this week
Alamos bought RIC by issuing stock to make the deal. It was a huge dilution of AGI shares by 30%. RIC shareholders will get 1.385 AGI shares for each of the RIC shares they own as I understand it. I understand they’re trying to increase assets but AGI seems to have a habit of shareholder dilution. I’ll hold my RIC until after the merger but I’ll have to play it by ear after that.