It looks like the fall in gold (to $1,788/oz - not a big deal, though it could be the start of a larger drop) was responsible for bringing AUQ and NXG prices down. That worked out well for me.
Consequently, I just bought another 3.2x stake in Northgate Minerals (NXG) at $3.98/share using the money from selling AUQ.
These will eventually turn into AUQ shares, of course.
Today's two purchase give me a 5.3x stake in Northgate.
Aside from its really sorry start, today's transactions have gone well.
Now, if anyone is wondering: Why would I sell AUQ to buy NXG when the the two companies are going to merge?It's because I like both AUQ and NXG, but I'm aware that newly purchased companies generally trade oddly until the deal closes, often giving investors a chance to snap up shares at a discount. So I'm thinking that NXG is probably inordinately cheap at the moment. Perhaps by as much as 10 percent.
And if the deal falls apart, NXG won't be saddled with Primero's baggage anymore and won't be a half bad company to own.
That's what I'm hoping, anyway.
Gold is $1,581/oz today. When it hits $2,000, it will be up 26.5%. Let's see how long that takes. - De 3/11/2013 - ANSWER: 7 Years, 5 Months
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