Here's the chart of Stillwater (SWC) and Peregrine Metals (PGM.to) since the day two Mondays ago when SWC, a company that mines palladium and platinum in Montana USA, announced it was buying a explorer with copper in Argentina.
I get the feeling SWC shareholders haven't had the same optimistic view of this deal that the SWC management (holders of a whopping 0.8% of shares between them) have voiced and y'know what, there's even a chance that this deal falls through. We went into all this and why your author decided to sell his PGM.to at $2.60 in IKN15 last weekend and fwiw* here's how that piece ended:
"So to sum up, there’s a small chance that SWC comes under pressure to drop this deal, with evidence supplied by the drop in the share price and backed up by the weakness giving rivals a potential opportunity to buy SWC on the cheap. Because of this, there’s a chance that SWC under its current management will not be able to close its desired deal and therefore PGM drops from its current “under offer” type prices. This is why I decided to leave the position last week, take the money and run."