Some have been bashing SLW for a lower entry price and mentioning other risker low cap stocks. Look at their financial reports. You will find some problems, and I would contact these companies for answers before investing. SLW has a cap rating of 99. Funds are buying SLW and for the golden goose reason. 90% of all stocks that these mutual funds purchased under $10 a share in the last several years have been bought out. SLW is the best rated metal stock among web sites and professional fee paid newletters.
Oh, now that silver has shown strength.. SLW is the leader? Well...this is correct. Now just because Gold is moving higher and Silver is moving higher how do you know this is for real? And another thing... with the turn down in the economy worldwide you will see silver production curtailed, right?. #1. Energy prices have fallen off a cliff...that is good. #2. Mutual fund, durivitive fund redemptions have slowed ( they threw out the baby ( precious metal miners and EFT with the bathwater ). Eventually you will see the miners pick up, first due to flight to quality, second to the rise of Gold, and lastly due to the selloff in US dollars and eventually, hyperinflation. Is this a good time to buy or what?
Ok, silly pumpers are gone today, good riddance. this stock doesn't need pumping. With a profit margin of 50% with today's silver prices and a P/E of only 8, the hedge funds know value when they see it. Buying up here in the $5.30 range before the FED cut and then, boom! we go much higher. Enjoy!
Yes, another insightfull gentlemen that see the picture. The FED used it's friends the banks(JP Morgan, Goldman, no offense) to artificially supress gold and silver prices over the last 30yrs. For the first time in several decades, these banks are now going net long on the COMEX contracts.
Backwardation in the contracts means that a unparralled short squeeze is on it's way. The friends of the FED know what the FED is going to do. They have to use gold and silver to absorb all the excess 7 trillion Us Dollars that they printed into the global money supply. In other words to sequester the excess money supply and keep the Us Dollar from complete collaspe, the FED will have to place the Us Dollar back on a quasi Gold Standard. This means that they will want to get Gold and Silver as high as they possibly can, therefore less gold and silver will have to be used.
Since the large institutional banks are now going net long on both Gold and Silver contracts at the COMEX means a unprecedented and historic rise in price for both metals is around the corner.
I have been trading SLW and all the miners for 3yrs. SLW is by far my favorite and the best business model I have ever seen. Being the world's biggest Silver producer and locking in the price for $3.90 an oz. for the next twenty years with a profit margin of 50% at current prices, makes this the bargain of the DOW. A P/E of only 8 and a PEG of .75, fundamentally makes the best brgain out there as well.
Buy and get out of the way. Cheers!
You were absolutely right. Once SLW hit $5+ today, the mutual funds steeped in with huge blocks. What's more, they were trying to stop day traders sell lower than $5. by putting in large blocks of 20000 shares at 5.01, so that they could continue buying at above $5. This vouches for your claim that many institutions' charters prohibits them from buying stocks that are below $5.And that they pursue certain agenda (i.e., buy out offers).
Guys, your words are well spoken on SLW. The only thing that I found a little strange was your plans to exit SLW at certain prices. I'm a retired airline pilot and am old enough to remember making really good money in Silver during the 80's HUNT brothers run up. Luckily I got out before the collapse. It was my best single investment in dollars made. With the coming collapse in the US dollar why wouldn't GLD,SLV, SLW go much higher than your numbers. Of course there is always a time to exit. SLW is run extremely well. I believe SLW can make a LOT of money during the coming deflation/inflation ahead of us. IMHO we haven't scratched the surface. Time will tell but FWIW I'm looking at a couple of years as more likely... Good luck to all...
The biggest reason why this stock had dropped so much was that hedge funds were loaded with SLW shares and had to do forced selling. It is different now, money managers and mutual funds are stepping in, there they were afraid before because of the hedge fund exposure. I know hedge funds buying and selling patterns, and I watched the SLW ticker for a long time. To end tonight with, I have never seen a company mentioned as much in private money reports as SLW. This is probably the real reason why the Fool and other web sites are saying that SLW will the number one in 2009. They subscribe to these reports.
You are being too modest. I would like to seek your advice on the best strategy to get the most out of my investment once the buy out offer(s) pour in. And, I think, most longs agree with me that we should get the most out of our investments through a professional investor like yourself. Thanks.