Topic: Growth Stocks

Stock Pickers Digest Hotline – Friday, April 7, 2011

Article Excerpt

PLEASE NOTE: Our next Hotline will go out on Friday, April 15, 2011. NEW GOLD INC., $10.81, symbol NGD on Toronto, has agreed to buy Richfield Ventures (symbol RVC on Toronto) for $550 million in New Gold shares. New Gold holds cash of $491 million, or $1.25 a share, so it could use some of those funds for the purchase. However, its shares are trading near their all-time highs, so the company decided to use its stock instead. Richfield owns the Blackwater gold project in central British Columbia, about 450 kilometres north of New Gold’s New Afton project. New Afton is forecast to begin production in mid-2012. The Blackwater project holds as much as 3.8 million ounces of gold. The project is accessible by road, and is near a BC Hydro powerline. After it brings New Afton into production, New Gold aims to use the same mine-building personnel to construct a mine at Blackwater. New Gold is still a buy. RDM CORP., $1.10, symbol RC on…

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