If you’ve been following the wheels and deals at MAG Silver (MVG) (MAG.to), you’ll know that despite the recent surge in Hope™ for the metals and mining sector the company’s stock price has dropped back from the recent U$6+ prices to sit back at the price offered by Fresnillo in December. Here’s a chart that wraps up the whole timeline.
click to enlarge
Now let’s play Reality Versus Fantasy
Fantasy: Fresnillo is desperate to get its hands on MAG Silver’s assets
Reality: It’s a bear market. That means it’s a buyer’s market.
Fantasy: Fresnillo is about to sweeten the bid
Reality: Check the chart.
Fantasy: A rival bid is on the way.
Reality: No company with a sane CEO would make a hostile/white knight counterbid for an asset that it would have to share with Fresnillo afterwards.
Fantasy: January and February share price at MAG Silver
Reality: March and April share price at MAG Silver.
And if you still need a dose of reality after all this, check the comparative chart of MVG versus (my own fave silver play) Fortuna Silver (FVI.v) and the silver ETF (SLV) as a proxy to the metal. Any further questions?
Moral: Don’t start fights that you cannot win. The end.