Musings on Investing

Multiculturalism and Immigration

Central Fund of Canada, Nevsun Resources, and Mariana Resources

At the last Capitalism & Morality seminar my colleague, Rajni Bala, gave a speech on what life is like for a girl growing up in India. Followed by that I gave a speech on how the ongoing immigration to Europe will result in horrendous cultural problems. Videos of both the speeches follow:


On investments:

  • Central Fund of Canada (TSX: CEF.A; NYSE: CEF) is trading at a 8% discount to the underlying value of the gold and silver it holds. If you are keen on buying these metals for a trade, CEF might be a great instrument to do so.
  • Nevsun Resources (NSU; US$2.28; C$3.03) fell on significant volume last week. It seems that people are valuing it based on its current profitability, which is rather low. But my current interest in NSU is mostly because of its Serbian project and the possibility that it will be acquired by a larger company. Linked here is my last note on NSU.
  • Mariana Resources (TSX.V:MARL; C$1.55) is being acquired by Sandstorm Gold. There is an arbitrage upside of >5% in owning MARL. With volume of MARL falling, I expect the arbitrage to increase over the next few days for a patient investor. If you do not have an opinion on Sandstorm, you can even short-sell it to cover yourself. Of course you will then take a risk in case the acquisition does not go through.

The seats for the next Capitalism & Morality are going away rapidly.

I will be speaking at 121 Mining Investment (in London), and International Metal Writers Conference (in Vancouver).

Warm regards,

Jayant Bhandari

Associate: Rajni Bala



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