2 of These 3 Stocks Look Like Damaged Goods: Cliffs Natural Resources Inc (CLF) and More

The stock was already depressed following the coding snafu by a third party hired to calculate the results for the biotech for earlier clinical trials, and while shares were slowly climbing back up, they remain almost 70% below the highs they hit last September. At the start of the year, I didn’t see much hope for Peregrine and thought short sellers might be on to something as traders bid up the stock, but now I’m more convinced that the company will have an increasingly difficult hurdle to get over.

A silver lining
Silver miner Coeur D’Alene Mines is taking a run at Orko Silver‘s La Preciosa silver project in Mexico, offering to buy the miner for $383 million and trying to outbid First Majestic Silver Corp (NYSE:AG), which originally offered to takeover Orko in December, but for 25% less than what Coeur D’Alene offered. The La Preciosa mine is one of the largest undeveloped primary silver resources in the world, with as much as 110 million ounces of silver indicated.

Analysts were surprised by Coeur D’Alene’s offer, noting that no one had made a move other than First Majestic last year, as Orko went through a formal process. So at this late date, if it still wants control of the Mexican silver project, it might very well offer a larger cash component to match the counteroffer.

Coeur D’Alene is the largest U.S. silver miner and already has a silver project in northern Mexico, as does First Silver, whose La Parrilla and Del Torro mines are in the same state as La Preciosa. Some think they might not want Coeur D’Alene to get a foothold in the region, but it has only until Feb. 19 to make a follow-up offer.

The article 2 of These 3 Stocks Look Like Damaged Goods originally appeared on Fool.com and is written by Rich Duprey.

Fool contributor Rich Duprey and The Motley Fool have no position in any of the stocks mentioned.

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