Take physic, pomp

Today’s KY Jelly Award goes to…

….Gammon Gold (GAM.to) (GRS), as it hands over another BOHICA* moment to its shareholders. The award is for this press release that starts thusly:
HALIFAX, NOVA SCOTIA–(Marketwire – Oct. 7, 2009) – Gammon Gold Inc. (the “Company”) (TSX:GAMNews; NYSE:GRSNews) announces that it has entered into an agreement with a syndicate of underwriters led by BMO Capital Markets and UBS Securities Canada Inc. under which the underwriters have agreed to purchase on a bought deal basis 11,240,000 common shares (the “Common Shares”) at a price of US$8.90 per Common Share for gross proceeds of US$100,036,000 (the “Offering”).
I’ve looked at GRS several times over the years and have always passed. I’ve never regretted that decision, either. How long-term shareholders must suffer to be in this thing, the archetypical zero-sum game.

Rule one of a business: Make money. Gammon Gold fails that test, DYODD.

*Bend Over Here It Comes Again

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