Stock pops on takeover talk.
Shares of Mercator Minerals (TSX: T.ML, Stock Forum) are up 50% in Wednesday trading on speculation that the copper-moly miner could be a takeover target. Stockhouse Bullboard member bjorn3d2b brought up the news when he or she stated, “It was reported that ML was showing exceptional strength and volume today and that ML has been rumoured to be a take over target by Quadra or Thompson Creek.”
The news was mentioned on the Business News Network (BNN).
In response, another Stockhouse investor 50centdollars said, in the post below (edited for clarity):
Thanks for the heads up Bjorn. ML is a takeover candidate period. Quadra (TSX: T.QUA, Stock Forum) would make sense given their $260M+ in free cash (greater than ML's current market cap!) and the fact that Robinson and Carlotta operate in the same state as Mineral Park. Also, QUA is looking to increase its moly exposure (building on its Malmjberg purchase in Greenland).
Whatever the case, I like this direction for the share price more than its opposite!
Investor brendelly also contributed to the discussion, saying, “Very interesting...buyout talks with it so cheap, I would say it still has a long way to go before the right price can be reached!! Good upside here for sure...”
Stockhouse Conflict and Disclosure Policy:
Stockgroup Media Inc., owners and operators of Stockhouse.com, has established the following rules to ensure that there is no appearance of impropriety on the part of any Stockhouse Editorial writers ("Writers"). The content of Stockhouse Editorial articles (the "Articles") are the opinion of the Writer and any reliance on the content of these articles is at your sole risk. Our Writers are not registered investment advisors. You should not make any kind of investment decision in relation to Articles or stocks discussed in them without obtaining advice from a registered investment advisor.
Facts relied upon by our Writers are generally provided by the subject companies or gathered by our Writers from other public and/or private sources. These facts may be in error and if so, the opinions of our Writers may be materially different.
Writers may own, buy, or sell shares in public companies mentioned in their Articles, but in the Article they must prominently state their ownership position. Thus, a conflict may exist. Writers are not permitted to write Articles that attempt to benefit persons connected to the Writer, such as family or friends, except where disclosure is made in the same way as if the Writer him/herself owns stock.
Writers cannot solicit, accept, or agree to receive anything of value given or paid with the intent of influencing their Articles.
Stockhouse notifies each Writer about these rules, and we rely on the integrity of our Writers to ensure that our rules are followed.
