BIM is another one bouncing off its 200 day.
Baffinland Iron Mines Corp (C-BIM) - In the News
FP says financial innocence hits Baffinland, others
2007-08-20 08:27 ET - In the News
Shares issued 79,836,525
BIM Close 2007-08-17 C$ 2.84
Also In the News (C-IVN) Ivanhoe Mines Ltd
Also In the News (C-JEC) Jura Energy Corp
Also In the News (C-NGD) New Gold Inc
Also In the News (C-RDV) Redcorp Ventures Ltd
The Financial Post reports in its Saturday edition that this latest market meltdown has taught Canadians about a security many of them knew nothing about -- short-term, asset-backed commercial paper. The Post's Peter Koven writes in the past couple of days, a number of companies have declared exposure to asset-backed commercial paper through products offered by Coventree Inc. The most exposed are junior resource firms. Most juniors probably know little about structured financial products. Their expertise is geology and engineering. Baffinland Iron Mines said Friday more than 95 per cent of its cash is tied up in Coventree-sponsored funds. It joins a list that includes New Gold, Redcorp Ventures, Jura Energy and Robert Friedland's Ivanhoe Mines. Baffinland, New Gold and Redcorp all bought the products because they were given recommendations by financial advisers. Coventree's asset-backed commercial paper securities had spotless credit ratings. However, it does not take a genuis to figure out that putting 95 per cent of your cash into one company's securities, as Baffinland did, is a bad idea. Companies may want to devote more detail to the "use-of-proceeds" section in the prospectus in the future.
