Topic: Growth Stocks

Stock Pickers Digest Hotline – Friday, December 9, 2011

Article Excerpt

EUROPEAN GOLDFIELDS, $12.86, symbol EGU on Toronto, is up almost 29% this week. The rise came after the company confirmed that an unnamed potential buyer has approached it about a takeover offer. Eldorado Gold, symbol ELD on Toronto, is rumoured to be the interested party. European Goldfields’ Skouries and Olympias gold projects in Greece and its Certej project in Romania would be good fits for Eldorado, which already has mines in Greece and Turkey. We’ve said for some time that European Goldfields could become a takeover target as its new mines move toward production. That’s even more of a possibility now, after its recent financing deal with Qatar Holdings LLC, a division of Qatar’s sovereign wealth fund, to develop its mines. Qatar Holdings’ investments will fully finance the development of Skouries, Olympias and Certej. These mines should let the company produce around 400,000 ounces of gold a year by 2014. The chance of a takeover adds appeal, but it’s not reason enough alone to…