Suddenly, from what seems like nowhere, all I’m getting in the inbox is talk/rumour/anyminutenow about buyouts, mergers and any noumber of deals in the junior miner sphere. Some even sound logical (the best ones do) while others so left-field they could be true (my fave so far is Great Panther buying Santacruz, that one made me laugh out loud but don’t start playing with the idea just on these words, as I’m long SCZ and may be trying to double-psyche you…right?).
No, the warning here is more general in nature. When this type of pent-up talk starts, you can bet dollars to donuts that 95% of it is pure hot air. Yes for sure there are going to be more deals, there always are, but beware those that would FUD you into a deal. There’s way too much BS in the sector already, so if you like charts (nobody’s perfect) stick to those and if you like fundies (idem) keep searching for your earnings or asset edge. Don’t swallow the hype, just because it happens to be a story that you want to hear. Things do look better out there, but moving from abject pessimism to total to-da-moon euphoria says more about your weaknesses as an investor than it does about the market.
UPDATE: Your humble scribe receives the following from Iwnattos, owner of Market Narrative:
Y’know, you should just post all the merger rumours on your blog.
Why should the mouth-breathing functionaries of capitalist oppression deserve to keep secrets from the proletariat? It’s not as if people like us have any other way to make money.
The reply: No, if only because I’ve spent over half a decade trying to avoid becoming a mouthpiece for the asshole end of the junior market.