Ann: Tropicana Gold Mine Celebrates 1 Million Ounces Milestone, page-34

Valinvestor,

The sp dropped immediately on the merger announcement. After that it is very hard for the individual to quickly evaluate whether the drop fully prices the value transfer. Sure the sp had already dropped some on rumour, but then an investor can't react to every rumour.

I would say there are three main elements to the IGO sp fall:
Firstly the sp was getting toppy and there was a operational performance and general management quality premium in the sp. That evaporated over the following few weeks.
Secondly the value transfer itself. Much of that reflected immediately on the announcement.
Thirdly the fall in commodities including gold since, but especially in nickel which we were to become so heavily weighted towards.

Finally there is often a hesitation to sell a long term holding due to tax considerations, whether of realising a capital gain or of compromising ones position as an investor vs a trader.

Yes in hindsight I should have sold, before the announcement, and even immediately after, but I didn't. It did not however take hindsight to see the deal as bad for IGO holders. The market saw it immediately, and gave NO-ONE the opportunity to get out without a substantial haircut, albeit much less than the eventual one.

EL