SLW has busted $20.50. I have held this stock since Jan of 2007, and was absolutely stunned when it dropped to $2.50 in Nov of 2008. Had I sold in March of 2008, I could have picked up 10,000 shares at $2.50 and be sitting on a gold mine now.
I am a firm believer in the power of the Precious Metals Bull that began in 2001, and I believe that they will continue higher in the long run, but I was burned so badly in 2008, that I don't want another repeat.
With earnings coming in tomorrow, good or bad, should I "sell the news" today having ridden up the rumors, or should I roll the dice and see if tomorrow produces another up day??? This rally (in the DOW) is looking long in the tooth, and I believe we will see another dip to retest the 2008/early 2009 lows. I also feel that SLW will get sucked into that morass.
Today, with the DOW below yesterday's close, we saw SLW up strong, but look at the last few hours, with the DOW up as well, SLW is on FIRE!!! This cannot last.
What say you??
Well, I held ( I am sure I will regret that tomorrow, or maybe when it drops $.50 in after-hours, ha, ha), but I really do believe this is a great way to paper play Silver. I have a decent amount of physical silver since 2006, but I am mostly a gold bug since the silver was taking-up too much space. So I figured that SLW was the way to go on silver.
GOLD's stunning performance today was what kept me in SLW, hoping that silver will ride Gold's coattails (and that Gold will continue up).
Thanks for all the great opinions. All our best guesses will be praised or cursed come the morrow.
One's tax bracket certainly enters into the decision as to whether to sell something for a profit that has been held for less than a year. I sold CDE, short term sale, for a $100K profit last year and paid 45% capital gains tax (fed and state). That was a great thing to do as the stock tanked after that and has been a dog. Actually, I sold it because it started going down as other miners were going up. This is not the case with SLW so I'll hold. Your call, of course.
Hey, thanks for that info. So it looks like I'll be paying 15% this year on LTGains, not the 10% I had thought. Next year is going to be crippling to the markets/short-term traders, me thinks.
Never met anyone who went broke taking profits............
1. Greg Barnes came out lately about the future of Peñasquito
2. Pan American just announced a dividend
3. Speculation swirling about JP Morgan's well known "hedging" and perhaps currently being investigated http://www.nypost.com/p/news/business/feds_probing_jpmorgan_trades_in_gZzMvWBqOJpB55M7Rh9vwM
4. If you live in Canada like the rest of us Eric Sprott is hard to ignore
Long-Term Sentiment Disclosure
I have taken profits...as I picked up really cheap and the position got too big to relax....
Other thing I forgot to mention -- a very short term factor. I feel today a shift in the flight to safety. Gold was really bolstered past week or so by this driver. It's over, at least for now with the panic subsided. I think US equity market is about to re-focus on the incredible earnings, jobs, everything. Also, many on this board have pointed out the CEO's tradition of disappointing at earnings reporting time.
Wrap it all up, I dunno, hell, I'm another nickel undewater since I started writing this, we'll see.
Thanks for all the quick replies. To each his own, I know, but I just wanted to pick some brains out there.
I am not a trader, and I am sure that if I get out, will have just as difficult a time deciding when to "jump back in".
I would like to take advantage of the 10% tax rule before it disappears this year, and I am afraid to wait til the end of the year to see where SLW will be (could be lower than today).
I also believe that this year will be the "last chance" to make some money for quite a while as the new tax laws that are being considered will possibly hit the stock markets pretty hard. (not to mention the retiring Baby Boomers). I am a pessimist though!
My opinion, huge, huge runup last three days. it's going to take a breather, higher probability of this than a steady continued rise. I'm short at 20.37 for a short-term trade.
Many other factors, earnings, etc -- but huge runup -- I have to believe charts say overbought.
It's 12:23 pm right now and pps is 20.50