Making 8.5% in a month - The Big Easy?

Question
How would you like to make a quick 8.5% in a month or so?

Answer
Look no further than CIC Energy listed in Toronto (http://finance.yahoo.com/q?s=ELC.TO&ql=0). Currently trading at $ 6.84, shareholders as of Dec 8 are slated to vote on the acceptance of a buy out offer from JSW (Jindal group of India) in a special shareholder meeting on Jan 21, 2011.

The Discount
The buy out offer from JSW is at $ 7.42 per share. CIC shares trading at $ 6.84 represent a decent potential return of 8.5% for a months worth of lock in. Buy outs from Indian companies on the Toronto Stock Exchange are not that common and that could perhaps explain the lack of investor confidence in the closing of the deal. That lack of confidence of course is why there is an arbitrage opportunity.

Tau Capital
Once CIC Energy has been acquired, I hope Tau Capital http://www.taucapital.com), the folks that developed and monetized CIC Energy, will focus on taking Talon Metals Corp. to the next level. Talon seems like a good play on multiple commodities in Brazil.

Feeding India

Here is a great slideshow on why India will be an increasingly large consumer of Potash - http://www.potashcorp.com/industry_overview/2010/markets/india/1/

Once you factor in the growing population, need to eat, need to eat more protien, it becomes obvious how Potash (required for crops as well as animal feed) is a commodity that will look to re-scale its 2008 peak soon.

With Potash Corp out of the take over limelight - http://www.bhpbilliton.com/bb/investorsMedia/news/2010/bhpBillitonWithdrawsItsOfferToAcquirePotashcorpAndReactivatesItsBuybackProgram.jsp, the focus is back on the juniors (http://www.reuters.com/article/idUSTRE6BI0MN20101219)

So far no Indian firm has made a play for a Potash resource. They have made plays for coal, iron ore and oil deposits across the globe.

Of all the juniors, I like Western Potash, the most - http://ca.finance.yahoo.com/q?s=WPX.V

Playing the Potash juniors is suited for the patient at heart as some ofthe majors have capacity expansion plans but as we have seen with the Baffin Island and New Millenium Capital story - every one wants their own captive supplies.