A List of SI Posters and the Resource Stocks They Like Message Board

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Gold/Mining/Energy : A List of SI Posters and the Resource Stocks They Like

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To: grusum who wrote (69)	2/27/2005 2:41:11 PM
From: tyc:>	Read Replies (1) of 78

I would like to add Agnico Eagle to the list of stocks I like. More specifically and speculatively, Agnico Eagle warrants. stockcharts.com[w,a]dallnnay[d20000226,20020626][pb50!d50,2!i!... This is a chart of Agnico Eagle for the two years prior to mid 2002. Since then fundamentals of Agnico Eagle have improved culminating in the final quarter 2004 results published last week. They were spectacular. Despite the improvement in fundamentals (and prospects), the stock has fallen since mid 2002. What happened ? In 2002, AGE issued $147M of convertible debenture. We are told of the growth of hedge funds. One of their hedging strategies is to short common stock while holding the convertible security. Perhaps the dismal performance of AGE stock could be attributed to convertible hedging i.e shorting of the common. However the company has the right to redeem the convertible in january 2006, which will force conversion of the debenture at a price equal to current market prices..... Does this not mean that the shorts may be covered in the coming months ? I believe so. (There is another resource stock that i see as similar, if anyone is interested in such speculation)

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