Was the Agnico Eagle Stock Price Fair?Do you think the deal was fair?
Consider the fact that AEM overstated their gold equivalent reserves in an Feb11/15 sedar filing by a full 18%. Don't take my word for it. The error is fully documented in a little read blog
https://www.goldminerpulse.com/trades/short_AEM_long_RBY.php#error
If Agnico corrects this filing in Sedar, it is quite possible that they would take a share price hit given that gold stocks trade on the basis of reserves and grade. As that blog documents, both the gold equivalent ounces and grade are grossly overstated in the most recent filing at Sedar.com.
If you are a shareholder then you might want to read the above and perhaps take a grumble to your provincial security commission.
Given that lots of trading happens in New York on the basis of press release contents, I suggest that there is a strong possibility that AEM share price is currently overvalued by 10% to maybe as high as 20%.
Seems to me it is a big advantage for AEM to leave the erroneous reserve disclosure and not risk an adverse move in share price when the error is fully disclosed. But again I ask is this fair?