Hi Hanrahan,There are indeed many opportunities out there... I...

Hi Hanrahan,

There are indeed many opportunities out there... I never back a single horse. I also hold BHP and will continue buying.

I disagree with you regarding the risk reward on CDE/BSG merger. Let me justify...

When the merger was announced I had a dialogue with Norm Seckord... These are the points exactly as he delivered them to me...

Start Quote...

1. The merger will create the world's largest silver company.
2. It will be the lowest cost producer.
3. Both parties are currently selling on (third party broker calculated) NAV multiples of 1.3 times.
4. The average NAV multiple for the silver peer group is 2 times, with outliers up to 2.4 times.
5. CDE's Total Enterprise Value divided by 2008E silver production is $48.
The industry average is $153.
6. CDE's 2008E price/ CF is 7.1 times, versus industry average of 16.7 times.
7. TEV to measured and indicated resources is 28% of the industry average.

Let me add a few more points. The CDE register, with the exception of a few NY and Boston funds is made up of individual investors. What do you think the institutional shareholders of Pan American Silver, Apex Silver, Silver Standard et al are going to do when they are holding shares valued at +2 times NAV and they see the emergence of a new number 1 silver company selling at 1.3 times NAV?

...End Quote

I have been trading BSG since under $2... I love it.

Since merger talks I have done my DD on CDE... It’s shaping up to be something magic. Especially combined with BSGs reserves. Also DD silver... Starting to become something included in most electronic gadgets. Not enough reserves to supply future demand...

I never give recommendations to people - But BSG/CDE is worth looking at (especially with the 10% delta on merger)... If you can handle a little risk.

BUT – We always run the risk of the global market crash… Risk in everything.