Value Microcaps Junior Miners

[jwbstock]

Views on the TVI/TGE merger?

I spent the last hour trying to come to grips with TVI.TO's odd merger announcement--a copper/zinc/gold company buys a financially strapped energy company (on the verge of insolvency) at a 78% premium. Only when I came across the fact that the CEO of TVI and the CEO of TGE are the same person did I realize the rationale for this odd merger. While it appears that TGE has some fine resource potential in the ground, the blatant self-dealing of this merger leaves a bad taste in my mouth. I plan to lighten up on my TVI investment, and to henceforth view TVI as a trading stock, rather than an investment.

While even a self-dealing CEO probably can't screw up too much during the current bull market in copper and oil, in the long run such blatant disregard for shareholders is a strong predictor of poor stock price performance.