Revett Minerals Inc RVM

Arbitrage opportunity with RVM/MGN

[migrants]

The current relative valuations of RVM and MGN seem to provide a compelling low-risk arbitrage opportunity -- i.e., being long RVM and short MGN.  This should be very profitable regardless of what metals prices do.  When it comes down to it, Rock Creek and Montanore really are quite comparable, and I believe that the probability of being built is similar for each.  However, RVM also has a real mine which when last operating at its peak was (and will again be) an impressive free cash flowing machine.  How can Troy be worth less than zero, which is implied by the current MGN/RVM discrepancy?  Some people have noted that a financing will be required to get Troy back into full operation, but it won't need to be very big.  It's just not a big deal.

Now, the problem is figuring out a way to short MGN.  My brokers don't allow shorting of $1 stocks.  Does anyone here know of an outfit that allows retail customers to short penny stocks?