Replies to post #16411 on ***Precious Metals Investors Club***

[Stinky_pinky]

Milo,
Silvereagle was mentioning that it looks like platinum is going to run. The first stock that came to mind was SWC, one of the few platinum miners out there. They diversified by buying out a copper/gold miner, and were seriously penalized for it. I watched the stock drop from $25 to $8 last year. Now they are back up around $13 and are still undervalued. My point being, not all mergers/buyouts are good things. In fact, most of the time the buyoutee takes a hit, as in the above example. Also, there are usually some behind the scenes shenanigans from the buyout targets management on their way out the door...Bottom line: I never was fond of an investment strategy of buying possible buyout candidates just like I don't buy miners that secure properties then hunker down (and like on stockholders equity). I just seems to me that for every one winner, you'll invest in five dogs. Just my opinion. S_P