Originally, I was interested in Osisko since it has dropped by three quarters since 2011 and it seemed cheap. However, the company consistently uses aggressive accounting so it’s not as cheap as it seems. Overall, Osisko is hard for me to evaluate since (1) I don’t trust the promotional management and (2) there isn’t enough information being disclosed. I also prefer to invest in management teams that are really good at generating value.
Queenston Mining (QMI.TO) – closed at a profit
Sold Queenston Mining at $5.27ish for a nice profit. Osisko announced a takeover of Queenston (0.611 Osisko shares for every Queenston share). I sold because it seemed to me that Queenston was close to fair value. At this point in time, a competing bid seems unlikely to me. One reason is that Osisko’s bid has a non-solicitation clause that Queenston management agreed to. Agnico Eagle Mines, which has a strategic investment in Queenston, will not be bidding on Queenston as it struck a deal with Osisko.
As somebody interested in investing, I want to figure out how to generate unusual returns from mining stocks. Here’s a look at what “worked” in the past. Continue reading
Right now there is a lot of carnage in my portfolio.
