On the 4th November 2009 we were of the opinion that that Agnico-Eagle Mines Limited (AEM) had been oversold and wrote the following:
In conclusion we think that the punishment does not fit the crime and that the selling has been overdone. So we see it as a buying opportunity. This week we will seriously consider making another purchase of the Agnico’s stock and may also buy a few of the longer dated Call Options.
We then proceeded to purchase some Call Options which we still hold however Agnico's recovery is slower than we had hoped for and the trading volume has reduced of late. The stock price has moved from $52.00 to $60.00 so we are heading in the right direction so it may be just a question of being patient for now. We are of the opinion that Agnico should be trading much higher as it is a quality stock with a bright future, however the investment community may not be as confident as we are which would explain the slower than expected rise in the stock price.
Agnico-Eagle Mines Limited trades on the NYSE under the ticker symbol of AEM and on the Toronto Stock Exchange under the symbol of AEM.TO.
Have a good one and stay calm.
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