Money manager Adrian Day comments on Yamana Gold’s spinoff purchase rights and the American Capital/Ares Capital merger.
Yamana Gold Inc. (YRI:TSX; AUY:NYSE; YAU:LSE) purchase rights have now ceased trading. Although some shareholders may have been able to salvage a few dollars from selling thesedepending on how many shares of Yamana you ownedgiven the “difficulty” some custodians seemed to have had in getting the rights into a saleable form, as the price fell from 33 cents to under a penny, we won’t attribute any value to these, and thus leave our cost basis for Yamana unchanged.
Shareholders of both American Capital Ltd. (ACAS:NASDAQ) and Ares Capital Corp. (ARCC:NASDAQ, 16.16) approved the long-awaited merger, expected now to close in January. Though there may be some volatility around Ares, the surviving entity, we are strong holders, and will look for an opportunity to add to positions, should it present itself. The strong short position in Aresnot unusual in an acquiring companysuggests the stock could be strong after the merger.
Adrian Day, London-born and a graduate of the London School of Economics, heads the money management firm Adrian Day Asset Management, where he manages discretionary accounts in both global and resource areas. Day is also sub-adviser to the EuroPacific Gold Fund (EPGFX). His latest book is “Investing in Resources: How to Profit from the Outsized Potential and Avoid the Risks.”
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1) Adrian Day: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: American Capital, Ares Capital. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this article: None. Funds controlled by Adrian Day Asset Management hold shares of the following companies mentioned in this article: Yamana Gold Inc., American Capital and Ares Capital. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned in this article are sponsors of Streetwise Reports: None. Streetwise Reports does not accept stock in exchange for its services. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their families are prohibited from making purchases and/or sales of those securities in the open market or otherwise during the up-to-four-week interval from the time of the interview/article until after it publishes.
( Companies Mentioned: ACAS:NASDAQ,
YRI:TSX; AUY:NYSE; YAU:LSE,
from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/pub/na/17226