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Sunday, September 25, 2011

Deal or no deal: more about the Maple Group-TMX Group Inc. acquisition project

I had been living for this moment for MONTHS!

Let’s go back in time. It’s on February 10, 2011 that I decided to purchase some stocks of TMX Group Inc. (X) at 41.97$. For this new acquisition, I had used some of my margin account money. I made this acquisition shortly after learning the merger project between the London Stock Exchange and the TMX Group Inc. (X). There was no doubt in my mind that something important was going on and I wanted to be part of it and make a huge profit. So I place my investment, wait a couple of months, vote in favour of the merger. The vote did not even go through; the TMX decided to cancel the project and had to pay millions of dollars in compensation to the London Stock Exchange. I always find it very weak coming from the TMX Group not to go down to it. They could have made the vote happen, but they decided to cancel everything.

From that time, because the vote did not even happen AND I TOOK TIME TO VOTE AND READ THE BRICK I HAD TO READ BEFORE VOTING F, well, from that time, I knew the TMX Group was all about bullshit, I knew the Maple Group offer was going to go through.

The Maple Group is composed of many banks and pensions funds. Now those major financial institutions want the most precious thing Canadians own: the TMX. Our stock market is very strong. I lived in myself. I am a young investors, I cannot say I went many crash BUT, I went through the 2008 stock market crash. I started investing in stocks shortly before the crash. The effect had been disastrous. However, I had been able to go through this crash without experiencing any lost. Back then, I was using my own money ONLY. Just to add up to the excitement, I decided to borrow to invest and following what, I decided to open a margin account and used the margin account to pay off credit lines debt at a higher interest. It was a good idea, but it’s not exactly what happens. While having more than 50 000$ available in CASH in my broker account, well, I did not use the money to go shopping, but instead, I used part of the money to invest. Was it a good decision? Well, I won’t answer to this question but so far, from December 2011 (when I started the margin thing) to present, well, it all went fine. However, I am exposed to a high level of risk. So my margin thing happens, I lived it, and I am still under margin even on date of today.

So I used margin account money to invest in TMX Group because my chances to win big through a London Stock Exchange deal or even a Maple Group deal were good. I had my chance to make a nice profit out of money I never worked for. And that what turn me on.

Investors had until September 30 to vote for their TMX Group Inc. (X) preference: earn a maximum of cash or a maximum of stocks via the Maple Group acquisition. I picked the maximum of cash option because that will provide me a 50$ per stock. This is quite impressive because I will earn a 50$ per stock out of money I never earned and also, during that time, I also earned dividend from the TMX Group Inc. (X). So who’s being smart now? I am pretty sure the Maple Group offer will go through because financial world is all bullshit and while the Maple Group first rep is a Quebecker of the name of Luc Bertrand is trying to play it smart and corrupt a diamond belonging to Canadians. Because with Quebeckers involved, nothing good is going to happen for the TMX Group.

This being said, I encourage investors to go in favour of a maximum of cash position because the Maple Group is not an existing society being trade on the TMX. No want can really know how much the Maple Group worth. And I don’t myself believe in the value of the Maple Group. Banks and pension funds to own the TMX? Right there, something is not right. As retail investors, we’re pretty much powerless while facing such events, BUT you can decide to avoid the bullshit by selecting a maximum of cash option.

Think twice, once created, the Maple Group could worth a lot less than 50$ per stock. Maple Group is not an active company that is currently being trade on the TSX. That’s my point here. I am not a Maple Group believer and I vote and make my choices following what I think is good or bad. The Maple Group is a real bad thing. Better stay away from it.

I believe in the power of my choices and I believe in the power of the CASH.

1 comment:

Anonymous said...

Look you can sell your HZD at a profit today (oh wait, you already sold it at a loss). But like I told you, look where you're other silver stocks are trading (under 14$). That's why the smart move to do if you wanted to bet against silver was to sell your silver investments and buy back lower.



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