LAKE SHORE GOLD CORP 6.25 PCT DEBS T.LSG.DB

Bebt repayment! VERY BULLISH

[mountainpose]

Of all the things a company can do, none is more bullish (any company), than to reduce debt. It is smarter than stock buybacks or increasing dividends. It significantly reduces a non-quantifiable risk from any analysis of value. This is especially true of companies where there is inherently a high risk of volatility in it's industry. I am a 30 year retired investment professional and can tell you nothing beats this move. The reduced interest expense is equivalent to a dividend increase. The saved cash boosts book value. The action often results in a rating increase from the agencies. It will result in lower borrowing costs on the renewal of any remaining debt and lower costs on future debt. It has been my experience that 90% of companies working hard at reducing debt show stock gains within 30 days. The song of the day for risk assets is: " If they have debt their dead". When you can't renew your through! And, for the interested, the worst thing you can do is repurchase stock. 67% of companies that do so have stocks down more than 5% less than 60 days later. This move tells you management is more interested in the stock price than the company. It is often done to push the price over certain stock-option exercise prices so management can cash out. Personally I view buy-backs as a conflict of interest on managements side. And yes the US$ is toping. A tip. In these kind of markets when you are sure you want to add to a position or open a new one "wait one more day" or cut your trade in half. You would be surprised how often this works. Good luck