Topic: Growth Stocks

Stock Pickers Digest Hotline – Friday, June 17, 2011

Article Excerpt

BREAKWATER RESOURCES, $7.41, symbol BWR on Toronto, is now the subject of a $663-million friendly takeover bid from Belgium-based Nyrstar, a major global producer of zinc and lead, as well as silver, gold and copper. The offer is for $7.00 a share in cash for all of Breakwater’s shares. In addition, Breakwater shareholders will get a special dividend of $0.50 a share in cash. At $7.50, that’s up 155% from the $2.94 we recommended the stock at a year ago in our July 2010 issue of Stock Pickers Digest. Holders of at least 22.6% of Breakwater’s shares, including directors and major shareholder Dundee Corp. (with a 22.1% interest), have already agreed to tender their shares to Nyrstar. Breakwater is now trading at $7.41 a share, or just below the bid. This indicates that investors are not anticipating a rival offer. We’ll say more about Breakwater as the takeover unfolds. But for now, we see the stock as a hold. SHERRITT INTERNATIONAL…

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