Short Call at News Buzzer: Fortuna Silver Mines Inc. (NYSE:FSM), Dominion Diamond Corporation (NYSE:DDC)

Fortuna Silver Mines Inc. (NYSE:FSM) [Trend Analysis] surged reacts as active mover, shares an increase 0.78% to traded at $5.18 and the percentage gap between open changing to regular change was 0.39%. Fortuna Silver Mines Inc. (FSM) reported that due to an ongoing regulatory review of the Company’s 2015 annual filings, the Company may be delayed in filing its annual audited financial statements and related MD&A for the years ended December 31, 2016 and 2015.

As part of a review by the staff of the United States Securities and Exchange Commission of the Company’s Annual Report on Form 40-F for the year ended December 31, 2015, the SEC has provided comments on the Company’s use of inferred resources in its audited financial statements for the calculation of depletion expenses.

The Company considers the use of its inferred resources in the calculation of depletion expenses to be appropriate under IFRS and consistent with the practice of other Canadian mining companies. However, until the SEC Comments are resolved, the Annual Financial Documents cannot be finalized. The firm past twelve months price to sales ratio was 3.99.

Dominion Diamond Corporation (NYSE:DDC) [Trend Analysis] try to make new thrust in street and making different trends, stocks trading ended with 22.98% to $12.20. Dominion Diamond Corp. (DDC) confirmed that it has received an unsolicited, conditional and non-binding expression of interest from the Washington Corporations or WashCorps to acquire the Company.

WashCorps submitted a three-page, mostly boilerplate, letter to the Dominion Board on February 21, 2017. Despite the generic nature of the letter and the lack of credibility of WashCorps in the diamond industry and with public company acquisitions, the Board consulted with its advisors and then invited WashCorps to present their expression of interest to the Board at an in-person meeting of the full Board of Directors of Dominion, which was held on March 9, 2017.

Based on the presentation received from WashCorps, and by their own admission, the Board confirmed that WashCorps does not have experience in the highly specialized diamond mining and marketing industry. WashCorps also advised that they did not have any unique plans for the business. Regardless, the Dominion Board carefully considered the expression of interest, including with the benefit of legal and financial advice. The share price of DDC attracts active investors, as stock price of week volatility recorded 5.20%. The stock is going forward to its 52-week low with 57.47% and lagging behind from its 52-week high price with 0.41%.

 

About Aaron Smithies

Aaron Smithies has a wide look on current monetary and financial events. He is an editor and a writer. His views; At Streetwise Report, we think the best opportunities arise from a complete understanding of all investing disciplines in order to identify the most attractive stocks at any given time. Interests: Biotech, Finical markets, Dividend stock ideas & income, Energy stocks, Consumer goods stocks

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