Central Fund of Canada (CEF) Message Board

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Gold/Mining/Energy : Central Fund of Canada (CEF)

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To: yard_man who wrote (11)	11/16/1998 3:52:00 PM
From: dynamitehandler	Read Replies (1) of 16

I'm reconsidering... now I don't think this offering will be dilutive because CEF will still be getting $4 cash for each new share they sell this way. This isn't like they're buying an overpriced asset using treasury stock (I've been burned in other companies doing that). So the basic question is whether I think the price of CEF will go above $4 per share during the next calendar year. Today's price is down to 3 7/8. If it doesn't get up to at least $4 during the next month then I predict there will be very weak participation in this offering. For myself, I'm still considering whether to go for it or not. I don't want to buy the shares at a premium right now, but I might do it anyway just because I think the price of gold will be much higher in 1999. And, the way this offering is set up, you can't buy shares at the option price next May or next November unless you start buying them right now (before Dec 15). It would be a lot easier decision if CEF would just start climbing right now so I could get immediate value from exercising the rights.

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