Globe says Mersch believes CMK could doubleGlobe says Mersch believes Cline Mining could double
2011-06-15 09:24 ET - In the News
The Globe and Mail reportsin its Wednesday edition that veteran money manager Frank Mersch saysthe Canadian stock market has not finished pulling back yet. The Globe'sShirley Won writes that Mr. Mersch notes that Cline Mining stock hastaken a beating lately. In January the stock hit a 52-week high of$5.04. The stock finished Tuesday at $2.44. The coal miner recentlyraised $86-million to develop its New Elk coal mine in Colorado. Mr.Mersch says Cline has been "unduly punished" in the market downturn.Cline, which could start up its mine in the fourth quarter, was tradingat its high "when the resource was less than it is today." Mr. Merschsays, "We think it could be a double." Right now, Mr. Mersch iskeeping more than 25 per cent of his funds' assets in cash to takeadvantage of the buying opportunities that he believes will emerge. Hesays, "I expect to see a bottom some time in late June or early July,"and will look closely at battered energy and metals stocks at thatpoint. The Globe says Mr. Mersch is an active trader who has beaten theindex during most of the past 23 years. He now works at Front StreetCapital. He oversees about $400-million in Canadian hedge funds andequity mutual funds.