We would suggest reading the recent editorial “Federal Reserve Cartel’s Main objectives; Manipulate Markets And The Masses” By Sol Palha. This provides a more general understanding of how corporations manipulate how earnings are viewed, which is the opposite and more general situation in financial markets today than dilution, creating a false impression of financial well-being, at least in the financial sector. CEO’s know this is the game being played and why perceived dilution can quickly be covered over with cheaply borrowed money.
Because interest rates are near zero and banksters plan negative rates corporations can buy back their stock very cheaply, thereby giving the impression that their earnings are improving. This is likely to reverse in the near future and create a major downturn in the financial markets because negative rates are not sustainable. What corporations should have been doing by improving plant and equipment, etc., they’ve replaced by accepting easy Wall Street money. When that disappears the truth of how their operations have been mismanaged will become apparent. We’re not sure how the populous is going to react when their local bank tells them, “If you want to deposit your “money” with us it will cost you X for every dollar.”
A quote from Woodrow Wilson lends a bit more to understanding the process of central bank fraud: "A great industrial nation is controlled by its system of credit. Our system of credit is concentrated in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated governments in the world-- no longer a government of free opinion, no longer a government by conviction and vote of the majority, but a government by the opinion and duress of small groups of dominant men."
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zolly.mack. ...I think you need drugs. This stock will be over $50 next year. I will happily buy you a STEAK
SUPPER when it does. MARK MY WORDS! You must have a big short position ?
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It's not like SLW management didn't know this substantial dilution would cause a large sell off. Anyone holding April or May call options just got abused as a result of this morning. The perfect opportunity to mention this deal would have been during the earnngs conference call. Yet they didn't say a word about it.
But company will be doing twice as many ounces by 2019. These deals should be internally financed or with equity owing to their long nature. But any pure equity deals should be accompanied by progressive share buybacks as the projects mature.
I just bought a small amount of 1500 shares at $16.70. I remember when there were under 200M shares of SLW. Now over 2X as many. Wish they would just stop doing deals for higher and higher prices and let the cash roll in. Guess they have to justify their salaries.
Anyway, I think the 5% selloff is a time to buy if you think silver is going up.
I think you're right...but if Canada wins I hope slw moves the whole operation to the Caymans. No good reason to be in Canada anymore..imo