Musings on Investing

The Discovery of Civilization

Here is the story of my first visit outside India, to the UK to do my MBA:

Also, linked in the following are stories to do with the structure of India:

On Investments

  • Osino Resources (OSI; $1.62) is being acquired by a Chinese company for $1.90. The risk and the market’s fear is that Canada is delaying or denying approval of mergers that involve China. I am not a lawyer but I think that Canada has no jurisdiction over other countries—the project is in Namibia. It seems Canada is delaying Zinjin’s investment in another company, Solaris. Osino and Solaris merely use Canadian vehicles for listing and investment. So, the only downside that I see is bureaucracy and delays. The companies can find workarounds. Moreover, DPM wanted to acquire Osino for what would be $1.53. So, the downside risk is limited, mainly when gold has gone up quite a bit since DPM’s bid. Also, gold is not a strategic metal, so Canada, even if it had the jurisdiction, does not have much reason to block it. Africa is hot these days. Montage Gold is doing very well. There is a bitter battle between Perseus and Silvercorp over ASX.ORR. Newcore has gone up nicely. I think Osino will close at $1.90.
  • In my last musings, I wrote about 92 Energy (ASX.92E; A$0.495), which is being acquired. It owns uranium projects in the Athabasca region of Canada. The arbitrage upside is 28%. The merged entity will trade only in Canada. I understand some Australian shareholders are getting out because their brokers likely do not offer trading in Canada. The ideal choice to trade such stocks is brokers that offer trading on ASX and Canadian exchanges. The deal should close early next month. I prefer Interactive Brokers. (This is a referral link).

Jayant Bhandari

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