In the case of NovaGold, that premium presently on the bid is +37-pct over the NG price as at July 21, when Barrick first made its hostile bid.

To give scale to this deal, the all-cash offer is now US$1.7 billion.

ABX is trading at US$30.47. Merrill Lynch has a 12-month Price Target of $40.00 for this former Cara 100 company. I think that ABX will need a significant lift in gold prices to reach that target, but on the other hand, I don't think the stock will trade below a recent short-term cycle low of just under $28.50. So even if new positions could be put on at $28.50-29.00, I think there are better prices available in some of the other gold and silver stocks I have been writing about.

Download ML update on Barrick-NovaGold.

While Goldcorp's Ian Telfer was explaining on ROBTV, premiums in the low to mid-30's is the current range these acquisitors have to pay, I believe that a +37-pct premium is a stretch, and that Telfer's statements are self-serving.

btw, I switched out Barrick Gold in favor of Gold Fields (GFI) in the Cara 100. I recently wrote up Gold Fields.

Barrick Gold [GICS 15, former Cara 100]
(ABX: Yahoo Finance file)
(ABX: StockChart chart)
(ABX: Investertech chart)
(ABX: ADVFN Financial Data)
(ABX.TO: Yahoo Finance file)
(ABX.TO: StockChart chart)
(ABX.TO: Investertech chart)
(ABX.TO: ADVFN Financial Data)
Barrick Gold website
Barrick Gold - DGF2006
Barrick Gold - DGF2005
Barrick Gold - DGF2004

NovaGold [GICS 15]
(NG: Yahoo Finance file)
(NG: StockChart chart)
(NG: Investertech chart)
(NG: ADVFN Financial Data)
(NG.TO: Yahoo Finance file)
(NG.TO: StockChart chart)
(NG.TO: Investertech chart)
(NG.TO: ADVFN Financial Data)
NovaGold website
NovaGold - DGF2006
NovaGold - DGF2005
NovaGold - DGF2004

Gold Fields Limited [GICS 15, Cara 100]
(GFI: Yahoo Finance file)
(GFI: StockChart chart)
(GFI: Investertech chart)
(GFI: ADVFN Financial Data)
Gold Fields Limited website
Gold Fields Limited - DGF2006
Gold Fields Limited - DGF2005
Gold Fields Limited - DGF2004