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Silver Wheaton Corp. Message Board

  • bushsbestfriend bushsbestfriend Feb 4, 2010 11:50 AM Flag


    The management of this company could not manage their way out of a paper bag.

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    • You have the right to your opinion. I strongly disagree and will be disregarding your comments going forward. Once in a while I'll feel compelled to write a letter when I think someone is way off base. I will remember to resist this urge going forward. There's no reason or reward to debate with fools.

    • Some comments here suggest you want to compare the ability of managers in industries such as technology companies and compare them with managers of a mining company. It's not apples to apples (pun intended). If you want to compare managements you need to compare in like industries. The mining industry can't be compared to industries that manufacture goods; manufacturers have a pipeline to production which regulates their business and a fairly predictable demand cycle. Mining is a commodity industry. If you don't know the difference between investing in a commodity and a manufacturing company, you may want read up on the risk reward theory. In this stock, you’re playing many markets at the same time. First you have the fluctuation involved in production as well as new discoveries. Next is inflation and or U.S. dollar trade. Then the metals market and in this case the monetary and industrial use of silver and its availability. SLW in their model has no control on any of these. This company should be viewed by an investor as a finacial institution which serves as an expert loan officer for large lenders (ex; Scotia Capital), but get's paid by taking a percentage of profits of their borrowers. They have an ownership postion with out any liability of the downside risk of call for capital a normal partner would have.

      • 1 Reply to gooptom
      • I have not compared this management to any other. Whether the "other" management be in metals, manufacturing, or any other industry.

        This management is incompetent. They do not know how to negotiate favorable contracts, they do not know how to follow through on what they promise, and most importantly, they do not know how to turn a profit.

        Silver prices have been at historic highs, and this management has completely failed to deliver earnings. If they can't make money in this environment, they never will.

        I stand by me criticism.

    • It frustrates me that people criticize what they don't know or understand. I feel SLW has one of the best working management teams in the industry and I feel the best model going forward. I don't agree with everything they do, but by in large for the most part they do it better than anyone else in RECENT memory.
      I would say it is a good rebuttal to your statement is the fact that the SLW management team changed last quarter from reporting net revenue from the smelter sales to net production was in a large part to try to more accurately forecast production going forward. They have received a lot of criticism for their forecasting in the past and it's affected the stock price I feel. But I disagree with your assessment of the management. The management changed their forecasting model in order to deal with this criticism.
      Listen to and read your quarterlies.

    • A market rout may help you clear out your short. I believe you have been shorting since $7.

      Good luck, and cut the bullsh!t

    • Look - this is the business model of the company. If you believe silver will fall below $8 then definately sell slw.

      I never said anything about no downside risk. The company states there is "reduced downside risk" since their costs are FIXED as opposed to floating like other miners. It makes SLW a PURE PLAY on silver prices with lots of leverage.

    • Silver Wheaton must have a silver price above $8 to break even. Below $8, they lose money.

      So tell me again how they have no downside risk?

    • I have to tell you that your 180 degrees wrong.If you compare this managment to others in their sector, such as CDE, HL, it's my humble opinion that the SLW team is far superior. Go to the annual meetings of the silver miners and then compare, you'd be amazed.

      Answer me this, how many people work for SLW? Divide the earnings by the total number of SLW people and tell me what company makes more per employee? Those are the same people who you say can't manage anything.

    • That's an incredibly in-depth analysis. Who could doubt you?

      • 1 Reply to heygoob
      • Consider the form of their contracts. They say the contracts give them the "right" to buy silver at $3.90.

        What management does not tell you is that the contracts also REQUIRE SLW to buy the silver production, even if it is unprofitable to SLW.

        A smart manager would structure the contracts as an option, giving SLW the right, but not the responsibility to purchase the silver production. That way, when silver prices drop, SLW can escape unprofitable transactions.

        But SLW management is incompetent, so they do not know how to negotiate a contract.

    • I am long because of silver's potential and I like the business model on this stock but I too have some concerns about SLW's management. As you have stated previously they have a poor record of meeting their guidance.

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