Globe says Goldcorp should be hungry for assets inGlobe says Goldcorp should be hungry for assets in 2010
2009-12-30 09:00 ET - In the News
The Globe and Mail reports in its Tuesday edition that because interest rates are so darn low these days, holding a vast cash horde can be a negative for a company if the money is not put profitably to work. The Globe's Andrew Willis writes that many senior players have amassed large cash hordes in the past two years, a cautious stance that reflected the recession and stormy credit markets. Looking ahead, Mr. Willis says there will be pressure to stop stockpiling cash and start building profits. He says in 2010 strong companies, with bulging pockets, will feast on weaker rivals. Barrick Gold may be the big dog, but Goldcorp is hungrier and has the better takeover currency, in the form of a stock that trades at a premium valuation. The Vancouver-based company's board is also acquisition-savvy, and chairman Ian Telfer is the new head of the World Gold Council, which promises all sorts of new relationships. Goldcorp is the logical buyer of Osisko Mining, says Mr. Willis. The inside poopmeister expects Goldcorp will be part of a feeding frenzy of junior and mid-tier acquisitions.