Probably they do buy shares and this creates some kind of support, though it can be also perceived as an artificial support. In other words, it helps present shareholders at the moment, but it also reduces interest to the stock.
I suspect that the Company is buying back some shares this afternoon. There's been a bid of about 42k shares that is trying to set a floor from $10.38 and then 10.40. The movement looks odd.
I expect silver to drop till the end of the year along with all the other metals. I suggest buying physical at the end of the year. If you've noticed from some of the metal conferences many of the companies are delaying projects, Mexico is adding a 7 % tax, additional environmental issues, indigenous groups and foreign countries want a bigger piece of the pie, and are much more difficult to deal with. Companies are being forced to mine their highest grade ore to stay afloat. I figure in 6 months to a year shortages of silver will start to appear. If you look at the Silver Institute they classify coin and silver bar production for investment as consumption when it really isn't. It doesn't get consumed just takes the silver out of circulation for a period of time. With mining costs rising coupled with mining lower grade ore silver prices will have to rise. Mining companies will be producing their silver basically at no profit margin or free cash flow. So in short, I feel it is much better to own the physical then the miner. I expect silver to be in the 17-18 dollar range by the end of the year and an attractive entry point.
I am a long term investor and do not time a market as changes can come quickly. So I set a price to hedge against the real unknown thus my first position. In the case of PAAS their beta is 1 that means they can trade on a daily bases 1% either way.They have been on a continued down tick with bump... More
I am a long term investor and do not time a market as changes can come quickly. So I set a price to hedge against the real unknown thus my first position. In the case of PAAS their beta is 1 that means they can trade on a daily bases 1% either way.They have been on a continued down tick with bump ups along the way, meaning a down step ladder chart wise, each time moving to new lows. The average I calculated is 1.6 with a high of 2.7 and low of 1 and seven steps down. At the point of average I then calculate a variance to the next break below the last 52 week lows near term to where I want a position with consideration to the bump up, that number is $9.70-9.53. As again I do not time a market or stock and want to hedge against a turn in the chart (at some point the down step chart will turn to an up step chart) I place a limit order for my first position, knowing the stock may continue to step down. Now keep in mind the industry is under pressure so one would have to correlate and since this industry is one of the easiest ones to do this with a company it is a simple calculation to do. So once I get the spread set and look at the history of the industry, calculate where a true bottom could occur (remember we do not really know), then I can calculate where I want to start my position and where I want to accumulate more as long as fundamentals of a company don't break down and it is just a market move that is occurring in an industry.
So you asked, why buy at 9.7 when I think it can get to 7.5? It is simple, as a long term investor I will hold or add share to get to what I consider my full position shares wise and again I do not time a market or a stock. As a long term investor I will expect to hold my position for a minimum of three years or more but average five years. Now along the way I will not only collect the dividend but also write covered calls when a bump up comes or a run happens and the stock runs to fast for its fundamentals, a covered call is written.
it should put somewhat of a floor underneath the stock. but silver needs to stabilize near $18 and not break much lower. wading into PAAS now at $10 and think it's a great long term play.
As the share buy-back starts this Thursday, how will it affect the trading? Anyone's insight or views are appreciated. Obviously, the silver price will dictate the trading mostly. With that said, I assume that at least in very short term, the share buy-back will deter some short selling. Just bought some today. Couldn't resist.
You make no sense. If you think PAAS going to 7.50...why put a buy at 9.70? Wait for silver to drop to lows...could be 10 could be 12 or this could be the low. Never bottom fish. Wait for the uptrend. Silver is a clear downtrend with gold....simply be patient and wait. Do nothing.
Today we could see silver break $19 to the downside. I expect we could drop as far in silver to $14.50. If I am right PAAS could go to around $7.50 per share. However I have a bid in to take a position at $9.70. Then I will wait until $8.30 double up if I have the funds and then double up again at $7.50 to reach 80% of what I want in my position. PAAS is a good investment long term and will do well when silver starts to climb again. For now pressure is on the metals industry..., all of them IMHO. But when interest rates start to climb again metals should improve but we may have to wait a couple of years.
Shorty, get ready to grab your ankles...this is the share buyback coming. They open up the buy on thursday. What do you think happens when their broker calls all those shares at expiration...someone better not be writing naked calls....gonna get ugly.
Eye4value, it was an institutional day-off last Friday and Friday trading together with today’s sell-off could tell (better say, confirm) the story: as of now institutions (aka WS) hate gold/silver. Fighting market tape (going against WS) has never been a profitable game. By the way, it is relevant, imho, both to retail investors, trying to fit in WS counter-party seat, and company, deciding to waste cash on buybacks.
It seems that buying PMs, even on moderate scale, is premature now until the last days of the month. Tax loss selling concentrates almost exclusively in this sector. It is alone enough to kill any portfolio.
Frankly, one to one corellation in metals prices and mining shares seems a unique and rare occassion. Bubble UP is more than a soft drink and Monthly Bond Buying Stimulus flowing into equities, translates into hot money chasing momentum.. no matter which equities wax or waine in favoured status. This is a banking game and it should start to get very interesting soon. Let's see how far the rubber band can be stretched before it all pops with the burst of the bubble. The fact that there are precious metals investors that are beginning to feel squeezed tells me that towels are being thrown into the ring and THIS is a precursor to added volitility.. though not necessarily price bottoms. It is starting to make me take notice, though not extensive action.