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October 18, 2006

Goldcorp vs McEwen in the squared-circle Friday, Wed., Oct. 18, 2006, 2:12 PM

Goldcorp and Robt McEwen are going to court on Friday morning. It ought to be entertaining. Too bad the drinks were not on the house. ADDENDUM

I'm hoping there are as many media there in the courthouse Friday as there will be tonight at the Leafs-Colorado hockey game. Good luck with that, although it shouldn't be that way.

There is also a warm-up fight on Thursday afternoon, but the main event is slated to go on Friday morning.

The court docs always make for good reading, particularly when the players can afford the best of lawyers.

I think you know what this fight is all about, but in case you don't, here is my article as well as a link to the McEwen website. Goldcorp apparently decided to keep their arguments hidden in a darkened boardroom.

In any case, all the players, and yours truly, will be in that courtroom. If you happen to be in the area, and can spare a few hours on Friday, you'll find the time well spent. You'll get to hear the arguments of Mr. Telfer and Mr. McEwen, and may even be able to get to speak to them.

In case you can't, I'm hoping the Toronto news media bring their full court press. Actually, this is a hockey game, where a fight is going to break out. It's not wimpy b-ball.

ADDENDUM

btw, at the McEwen site, there is an interview with a Toronto Old Boy, Frank Holmes. He discusses the current situation in the metals markets plus the background and his opinions on the Goldcorp-Glamis deal. Frank doesn't like the deal, and wants shareholders to have a vote.

Frank's San Antonio based Fund was a major buyer of both Wheaton River and Goldcorp for many years. He says that Ian Telfer did call him for support and that he told Ian he was shocked at a 180 degree turnabout. He also discusses what Goldcorp management did to try to hammer this deal through, and he's pissed. He wants people to complete the support forms for McEwen.

Frank Holmes had $200 million of his client's money in Goldcorp and he sold. Listen to his arguments. Now that I listened to him, and read the McEwen affidavit regarding the deal merits, I'm going to retract my support for the deal. I agree with Holmes; this is a deal that Glamis should have proposed to Goldcorp. Goldcorp shareholders would have turned it down.

Get involved; you can make a difference.

Also read Rob McEwen's bio. You'll see the kind of person that you would be supporting in this fight for shareholder rights.

Posted by Posted by Bill Cara on October 18, 2006 02:12:18 PM | Category: Goldminer Producers

Discourse

Bill

Question - Are you considering adding GLG back onto your Cara 100? Will you keep GG on your Cara 100?

Your article is very timely to me. I am considering adding GLG and/or GG to my portfolio as they are both top tier Gold Mining stocks with strong fundamentals. With the questions swirling about the take over, it appears to me the shares of both companies are depressed. GG is closest to the RSI accumulation rule and it is a Cara 100 equity. But buying GG mgmt is more difficult than GLG. GLG seems to have the better desired fundamentals and future prospects (mexico etc).
At this time, my plan is just to purchase both.

Thank you as always Bill.

Posted by: SoccerMatt [TypeKey Profile Page] at October 18, 2006 3:07 PM [link]

GLG will not go into the Cara 100. I may put GG/G back in -- if the deal is killed and management loses their support at the next meeting. I'd like to see Rob McEwen put a management team in there, and then for sure it would be a Cara 100.

I can't give specific advice on stocks -- I'm not registered and I don't know your circumstances -- but personally I am more interested in the higher risk of KRY (best NAV/share for gold) and IVN (best NAV/share for copper).

Trading is sometimes like a football game. With the two I like, I feel I'm 3rd and goal on the 1-yard line. I'm not ever going to kick for an almost certain 3 points. Maybe you would.

With KRY, I believe there will be a take-over bid by Goldcorp (which is one reason I'd buy Goldcorp) as soon as Crystallex gets their environmental approval.

With IVN, you haven't seen a Friedland dog-and-pony show, which he's going to do before he sells his stock. For NYC, he may even rent Madison Square Garden. :-)

Posted by: Bill Cara [TypeKey Profile Page] at October 18, 2006 3:28 PM [link]

Bill,

Do you have any anticipation on the "when" with respect to KRY? This year? 2007? "Soon" can mean a lot and there are certainly opportunity costs...

Thanks,
Brian

Posted by: began329 [TypeKey Profile Page] at October 18, 2006 4:47 PM [link]

Maybe McEwen should line up some support from pension funds and hedge funds to get rid of Goldcorp management. It is hard to believe any good management will deny a shareholder vote in such an important matter.

Posted by: yc32 [TypeKey Profile Page] at October 18, 2006 5:43 PM [link]

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