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February 24, 2006

Glamis acquires Western Silver, Fri., Feb. 24, 2006, 12:38 PM

On a day where gold and oil prices are on wheels, Glamis Gold (NYSE: GLG) announced it is buying Western Silver (AMEX: WTZ) for $1 billion in a pre-arranged deal. WTZ got a lift and GLG took a haircut.

But it looks to me that traders in Western Silver saw this bid coming. The stock has been very strong, up over +25 pct in just over 6 trading sessions from Feb-14.

Meanwhile, based on news of a terrorist attack on the major Saudi Arabian oilfield today, the price of oil and gold is up. GLD, which is the ETF that is backed by bullion, and represents the spot price, is up +$1.00 (+1.8 pct). The futures market is up +$9.70.


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Posted by Posted by Bill Cara on February 24, 2006 12:39:09 PM | Category: Goldminer Producers

Discourse

As mentioned before... energy sector fund at RYdex has fallen out of favor. If past 2 years is any indication this represents a good entry point.

Note APA form 4 today- these stocks are not expensive relative to earnings...

long APA

Posted by: stockman [TypeKey Profile Page] at February 24, 2006 1:03 PM [link]

Hi stockman,

where to look for to check sentiment about energy sector fund at RYdex. Info will be great help. Tx in advance.

Posted by: govind [TypeKey Profile Page] at February 24, 2006 1:34 PM [link]

My preferred source for sector funds- sentimentrader.com subscription required.

Posted by: stockman [TypeKey Profile Page] at February 24, 2006 1:42 PM [link]