Friday, February 24, 2006

Western Silver bonanza

No sooner does Glamis Gold (GLG) enter the honoured ranks of the S&P/TSX 60 index, then it stirs up the mix for all those portfolio managers who have to pick up the stock for their funds. Today's announced $1.2-billion buyout offer for Western Silver (WTC) adds some spice. Glamis means to go big, and the market will have to digest this quickly. GLG is off 4% post-announcement today.

But for WTC shareholders the buyout offers a nice premium. WTC was a Stock Trends Pick of the Week in early December when it traded at $12.02, and it had a Bullish Crossover on December 22. Today's big pop to $24.61 reminds us that consolidation is going to be a factor in the sector.
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