December 11, 2009-18:48 ET - In the News
International Speculator in its Dec. 1, 2009, issue includes Ewan Downie's Premier Gold Mines Ltd. at $3.79 as one of several picks ripe for takeover. The newsletter said buy three times between Jan. 2, 2008, and Jan. 2, 2009, at prices ranging from $1.55 to $2.69. Assuming an investment of $1,000 for each buy, the $3,000 investment is now worth a yummy $6,132.
Prompting its search for takeover candidates is Goldcorp Inc.'s recent proposal to acquire Canplats Resources Corp. for $238-million.
The writer notes that Premier does not have a large gold resource compliant with NI 43-101 -- it boasts only 500,000 ounces, officially -- but it is successfully drilling off high-grade gold resources on several properties that are adjacent to Goldcorp's operations in Northwestern Ontario. The company's lead promotion is the Hardrock project, also in Northwestern Ontario.
He says Premier may be expensive for what it can show, which makes the stock vulnerable to correction. Still, the writer argues Premier is a company that was born to be taken over. He says before you buy any more shares, wait to see if the forthcoming resource estimates justify the market cap.
