i find it interesting at all the fund managers are now buying...

i find it interesting at all the fund managers are now buying AXO as a proxy for AGO. Still the discount between AXO and AGO hasnt closed much ($2.76/3 = $0.92) compared to AXO's last price of $0.87. So you can buy AGO at a discount of 5.75% if you buy AXO and hold until the merger is completed.

As for AXOG, i have been watching it but im more excited by buying AXO becase its cheaper and i get better upside.

the only time i would be thinking of the AXOG is right before they pay the last interest payment or if someone makes another bid for AXO.

i have to say i have been surprised to see AGO push up so much in the last few weeks, we might just see $3+ in the next few days.

i think you are seeing fund managers sell their AGO and buy into AXO for a arbitrage play, just go and look at the short selling going on with AGO. the best play in town is to short 100,000 AGO at $2.75 = $275k then go and buy 300,000 AXO @$0.87 for $261k and then hold and wait for conversion and hey presto you deliver your AGO from the AXO merger into the short position and you have made $14k almost risk free!!

do the sums on a $10m position and you will make $500k profit!!!

thats where the big money is playing, they dont care about AGO going up, they just care about the 5.75% spread.

If i could get my hands on some AGO to short i would be doing the same thing as the big boys, the only risk is if the merger doesnt happen, but if someone comes over the top of AGO then you will probably pick up more as AXO goes higher and AGO might drift back without the port access.

anyway, AXO should be trading at $1.50+ if they had of secured finance like they had been saying all along!!!