Stock price more than doubles in the past week
It’s been a good week for Frontera Copper (TSX: T.FCC, Stock Forum). Shares of the Toronto-based mining company jumped 25.9% to 34 cents last Friday and continued climbing this week. In mid-afternoon trading today, Frontera was up 13 cents to 58 cents, a 28.9% change on volume of more than 408,000.
On the BullBoard, there has been speculation that the company might be a takeover target. In a story posted by Stockhouse editorial staff on November 24, investors commented on Frontera’s takeover potential, given that the stock’s recent increase isn’t tied to any company news.
Steve97 reacted to that speculation today, saying “Re Takeover candidate,”
“Bailey2 - you were right on the money. Invecture group 16% control and growing, they want legal control, verbal dialogue is ongoing between the 2 companies. What's your guess for the takeout price? In this market anything goes. I guess $1.50-$2 might be it. It hurts the longs, or those that bought $2 and up if that is all you get, but a nice premium if you have been buying around the 30 cent mark.
“http://www.globeinvestor.com/servlet/WireFeedRedirect?cf=GlobeInvestor/config&vg=BigAdVariableGenerator&date=20081128&archive=ccnm&slug=500029_1”
To which Bailey2 replied:
“Well., we now have confirmation that Frontera is in play. With that, there obviously will be some in depth analysis by big investors to determine what type of price it may fetch. Long term debt of 80 million is peanuts when you have a billion lbs in the ground and a brand new mine. Flush with cash also. I believe that at the price this morning of 60 cents whomever accumulates as much as they can, will be richly rewarded. This news alone, I believe, will take the share price short term to at least a dollar. Just my own opinion. See what happens people have time to assess over the weekend and the latest news release gets out.”
Stay tuned.
