Post by
tony1969 on Dec 16, 2011 5:51pm
Why was Teranga up?
Teranga was up 8% on Friday to $2.23 on 2.36 million shares Why would a stock that just reported that they were going to miss their prouction target be up 16 cents in a correcting gold market. In my opinion there is a possiblity that TGZ is being propped up to make a deal with Oromin more attractive. With a couple of million dollars and not many sellers a stock like this can be moved up 10 percent or over $50 miilion in market cap in Teranga's case. This is pure speculation but it does make some sense to me. For example, if a one share of TGZ for each share of OLE stock deal would be done, TGZ would be able to offer 8% more to to OLE shareholders on todays move alone. Knowing that the buyer's stock usually dips after a deal, any upward movement in price would cushion the probable decline in the stock and help the price of OLE. Again, I believe that these two companies complement each other extremely well. It is as it always is probably just a matter of price. Any comments?
Thanks
Tony