Tuesday, November 07, 2006

Hit #127 (Bema Gold)

Bema Gold (BGO) is being bought by Kinross (KGC) for $5.85/share in a stock deal. I intend to hold onto my Kinross shares as I expect it to be acquired eventually. I may even add to my new Kinross position later.

The offer represents a premium of 174% over my average cost of $2.13/share.

I had made a few investments in the gold/silver/copper/platinum sector, most of them well over 2 years ago. I had mentioned Bema in an earlier post (Hit #73) when Placer Dome was bought out.

I have also recently opened a position in Golden Star Resources (GSS), which still looks attractively priced. The company will become a target in the not too distant future, but remains more of a speculative bet.

I am holding onto my Couer D Alene (CDE) shares. In addition, I have made small investments recently in Stillwater (SWC), North American Palladium (PAL) and Northern Orion Resources (NTO), the last two definitely falling into the speculative category. A recent blog entry at 10Q Detective convinced me that NTO was worth owning, as long as one was aware of the risky nature of the bet.

Previous hit - Swift (#126)


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