Western Goldfields (WGW)

[Frankdetroit]

Welcome Mouser- That is some good info that you dug up. I also agree that wgdf is still a super deal at these price levels but this is not a recommendation to buy or sell as everyones portfolio needs are different.

[mouser]

Well frank i have recently delved into the WGDF story and find it quite interesting - so much so that I have been buying it up here around .32. One only has to look at the heavyweights getting involved with Romarco to know something is up and right now WGDF trading at a 50% discount to R interms of the merger agreement.
Ms. Stephanie Thompson reports

U.S. GLOBAL INVESTORS, INC. - NATIONAL INSTRUMENT 62-103 FILING

U.S. Global Investors Inc. (the offerer), investment adviser of the U.S. Global Investors World Precious Minerals Fund, the Meridian Global Gold and Resources Fund and the U.S. Global Investors Balanced Natural Resources Fund, confirms that on Sept. 6, 2005, the offeror, on behalf of the minerals fund, the global gold fund and the natural resources fund, purchased 5,682,353 units, 100,000 Units and 100,000 units, respectively, of Romarco Minerals Inc. pursuant to a private placement from the treasury of the issuer. Each unit consisted of one common share in the capital of the issuer and one common share purchase warrant, each warrant exercisable into one common share upon payment of 21 cents per common share until Sept. 27, 2007. Assuming the exercise of the 5,882,353 warrants, the acquisition represented 22.32 per cent of the issued and outstanding common shares as at Sept. 6, 2005.

The acquisition was made for investment purposes only. The offeror may, depending on market and other conditions, increase or decrease its beneficial ownership, control or direction over common shares or other securities of the issuer, through market transactions, private agreements, treasury issuances, exercise of convertible securities or otherwise. In connection with the private placement, the funds, however, undertook not to exercise any warrants if, following such exercise, the percentage of the issued and outstanding common shares held by the offeror would be greater than 20 per cent of the number of issued and outstanding common shares of the issuer.

After giving effect to the transaction noted above, the offeror controlled 8,176,753 common shares and 5,882,353 warrants of the issuer. If all of the warrants owned by the offeror were exercised by the funds, the offeror would have exercised control or direction over a total of 14,059,106 common shares, representing 26.67 per cent of the issued and outstanding common shares as at Sept. 6, 2005.

The offeror acquired 10,000 common shares on the open market through the facilities of the TSX Venture Exchange after the date of the transaction, giving rise to the obligation to file a news release.

After giving effect to all acquisitions and dispositions by the offeror up to the date hereof, the offeror now exercises control or direction over 8,186,753 common shares and 5,882,353 warrants. If all of the warrants owned by the offeror are exercised by the funds, the offeror will exercise control or direction over 14,069,106 common shares, representing 26.69 per cent of the issued and outstanding common shares as at the date hereof. Excluding the warrants, the offeror controls 15.53 per cent of the issued and outstanding common shares as at the date hereof. However, as stated above, in connection with the private placement, the funds undertook not to exercise any warrants if, following such exercise, the percentage of the issued and outstanding common shares held by the offeror would be greater than 20 per cent of the number of issued and outstanding common shares of the issuer.

[Frankdetroit]

It looks like wgdf may be picking up some speed here. Maybe there is news coming shortly or a recommendation to buy from a newsletter. It just look like buying volume is picking up for
"no" reason at all?
I am so confused.
This company stock chart is throwing off some mixed signals with the DMI kind of trend less and the stochastics not giving meaningful buy or sell signals. Hopefully that is because wgdf is getting ready for a lasting rally.

[Frankdetroit]

An update to clarify my last post

I should rephrase "mngmt shakeup"
the following press releas is taken from romarco minerals website and explains the changes in mngmt because of merger agreement.

"The combination will be effected through a share exchange merger whereby Romarco will issue its shares in exchange for shares of Western Goldfields. Details of the share structure will be finalized in the definitive merger agreement. Upon completion of the share exchange transaction, Diane Garrett (Romarco Pres. & CEO) will become Chief Executive Officer of the combined company and Thomas (Toby) Mancuso (Western Goldfields Pres. & CEO) will become President of the combined company. "

[Frankdetroit]

At the price of twenty some cents it is my opinion that WGDF is "low hanging fruit".

I beleive that we got to .20 cents because of some sort of management shake up having to do with the Romarco merger.

But now that is behind us and the market should start pricing in a premium for having an open pit heap leaching mine that has been operating for years and producing a lot of gold. Now the management just has to lower operating expenses and start socking some money away.

regards

[Frankdetroit]

Any day now

[Golden Cross]

yeah, newmont and that latin american, insiders look like they have quite a lot of the O/S shares... I don't know... maybe you are right and they just want to keep things close to themselves... may give them a ring tomorrow... GL. 775-337-9433

[Frankdetroit]

See link for insider transactions

http://finance.yahoo.com/q/it?s=WGDF.OB

[Frankdetroit]

I know it doesn't sound good that WGDF is not repling to my email question.

That is because they do not want people to be buying the stock at these dirt cheap prices.

Most likely the insiders are scooping it up to resell later for dollars and not cents/share.

Believe me, when this stock hits a couple of dollars a share the management will be doing nothing but answering emails and talking to investors about how great their company is.

That is just how it works. It takes a couple of business cycles to catch on.

[Golden Cross]

doesn't sound good when they will not answer... have you tried calling? GL

[Frankdetroit]

I'm still waiting for Investor relations to answer my email!!!. This is just how it is when a stock is at the bottom of a cycle. The companies don't talk or answer emails or the phones. At the top of the cycle all they do is answer emails and talk on the phone and go to investor conferences so they can sell overpriced stock. To me it is actually a buy signal when nobody from the company will talk to me and it is a sell signal when companies are eager to talk to investors. Just some opinions of mine.

[Golden Cross]

Thanks,

Let us know when you get word back from investor relations... GLTY

[Frankdetroit]

HI Gateway- My opinion on investing in wgdf at this price level is based entirely on technical analysis and not at all on fundamental considerations.

That said I base wgdf a buy. I use the DMI on a daily and weekly basis along with Momentum indicators with stochastic indicators on daily and weekly basis to help time purchases and sells.

I am still waiting to hear from investor relations on what the impact of the merger will be for new investors versus investors that were holding shares before the merger announcement (in relation to the 2 for 1 deal which is 2 shares of Romarco(tsx) for every 1 share of WGDF)

[Golden Cross]

what is you opinion in investing here or after the merger finalizes? yeah, I would think we are near a short term top here.. GL

[Frankdetroit]

Gold up 5.70 right now in night trading- probably a short term top somewhere in here but for wgdf it is looking like some kind of a bottom is going/has gone in. I have a feeling that this company will lag the big cap gold stocks a little but once it gets moving it will be like a train to the upside.

[Frankdetroit]

I don't think that the merger is 100% complete. It looks like they are still waiting on shareholder approval and maybe some other details. It should most likely go through in my opinion.

[Golden Cross]

Is the merger with Romarco Minerals Inc. cpmplete? Have a old NEM mine... looks good and with production 75,000oz the stock looks undervalued with gold prices soaring... GL

[Frankdetroit]

This is the first discussion board that I have created so feel free to make suggestions.

Thank you
Frank Detroit

[Frankdetroit]

Welcome to the Western Goldfields discussion board.

This is an interesting little company with some intriguing possibilities. Their website is very informative.

Don't be shy- just jump right in.