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First Majestic Silver Corp C.AG.UN


Primary Symbol: T.AG Alternate Symbol(s):  AG

First Majestic Silver Corp. is a mining company. It is focused on silver and gold production in Mexico and the United States. It owns and operates the San Dimas Silver/Gold Mine, the Santa Elena Silver/Gold Mine, and the La Encantada Silver Mine, and a portfolio of development and exploration assets, including the Jerritt Canyon Gold project located in northeastern Nevada, United States. It also owns and operates its own minting facility, First Mint, LLC, and offers a portion of its silver production for sale to the public. The San Dimas Silver/Gold Mine is located over 130 kilometers (km) northwest of the city of Durango, Durango State, Mexico and consists of 71,868 hectares of mining claims located in the states of Durango and Sinaloa, Mexico. The Santa Elena Silver/Gold Mine is located over 150 km northeast of the city of Hermosillo, Sonora, Mexico. The La Encantada Silver Mine is an underground mine located in the northern Mexico State of Coahuila, 708 km northeast of Torreon.


TSX:AG - Post by User

Bullboard Posts
Post by OptsyEagleon May 11, 2011 3:58pm
373 Views
Post# 18561991

I still Predict a Buyout: $2.60 per share

I still Predict a Buyout: $2.60 per shareJust a guess.  I don't own the stock, but it seems to me that management wouldn't be settling all these lawsuits if they didn't have some serious bidders.  I am sure everyone has mentioned their reluctance until the lawsuits are settled, but I would think management would want to save the money for the CVs unless they had some very serious indication of an offer.

It is very risky however, because even if there is an offer, it is difficult to say how much it will be for.  Can one short convertible bonds.  I would say a good hedge  trade would be to buy a certain amount of common shares and short the equivalent amount of convertible bonds.  The bonds have only a little over 8% upside and the common probably up to  80%.  Although you could lose on the downside, the losses from the convertibles would help recoup that somewhat if not entirely.

I haven't worked out all the details because I don't think you can short CVs but maybe someone knows if you can.  I would suspect if you could, some hedge fund somewhere would have driven their price to a lot lower then where they are today, if the above trade could be executed.

Anyway, just rambling here.  Good luck to all stakeholders.  I can't believe AG management messed up the business of making ice.  They should be proud of that achievement.  I figured out how to make it successfully when I was 8.
Bullboard Posts