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What: Shares of precious-metals miner Stillwater Mining
So what: This bounce is one heck of a backhanded compliment: The stock fell 35% last week in a mining meltdown of epic proportions, and today's jump comes as Stillwater backed out of a plan to raise capital via junk bond sales.
Now what: CEO Frank McAllister explained that those bond sales wouldn't be in shareholders' best interest thanks to "the dramatic deterioration of the capital markets during the past week." Moreover, he noted that the company's capital needs and working capital liquidity are fully met by current cash equivalents. That raises the question of why Stillwater was digging for bond gold in the first place, in turn shining an unforgiving light on the management team. If I were looking for a mispriced mining stock after last week's crash, the amazingly profitable Silver Wheaton
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Fool contributor Anders Bylund holds no position in any of the companies discussed here. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool is investors writing for investors.