Quite surprised that its not $5 yet. The stock was summarily chit canned in 2008 like all juniors and has had to work off a lot of overhead supply, but I think we're almost thru that. Smart people were buying amd not selling all the way down to $1 (muah) are now sitting nice. The is a band of overhead supply from 2006-2008 in the $4-6 range and I think that will be sliced thru like butter once silver starts working the 20s.
I like how First Majestic has already made their earlier shareholders very happy. Hopefully, the latecomers in 2006-7 took the opportunity to load up while it's cheap.
One has to look at PAAS a 25 million oz producer and their 2.5 to 3 billion marketcap and wonder if First Majestic isn't dirt cheap at not even $400 million narketcap and ready to deliver 6.5 million ozs of silver in the next year.
Their CEO is a proven winner bringing First Quantum Minerals from nothing to a multibillion dollar copper midtier. All indications seem to point to the same thing happening at First Majestic - but with SILVER and not base metals.
I am in love. Yes it is a core holding. Yes I am pumping but what's not to like. They also have 2 development projects that are going to put them in the 10+ million oz category. That's better than Hecla with little base metal byproducts to skew the results.
The company has no liquidity issues and has made a quantum jump in production and profitability in the last couple years and I so fundamental reason their stock would crash down to $1 again even if the markets unravel some. If that were to happen I will accumulate enough shares that I can call the company and get a guided tour of the mines with upper management.
First Majestic uptrend will not stop until round number resistance at $10! Earnings are gonna be GREAT even though they probably only sold silver for $21 last Q. Imagine how much better Q4 will be. I think F.M will report Q1 in April-May 2011 when silver is $30+ and it will be $20/sh easy. That would only be trading at a similar multiple as Pan Am.
To be fair, First Majestic is not a penny stock. It's a pretty reputable Junior silver producer.
The guy is definitely talking his book, and I think there are better options out there, but I don't think he's trying to swindle anyone. He's just talking up one of many silver stocks people are excited about.
First Majestic 350 million ozs of silver resource. And much larger really. CEO said they aren't interested in drilling to increase resource. They are focused on increasing capacity and production to realize cash flow.
Before the JPM orchestrated silver meltdown on 2008, top silver companies were trading at $5/oz. When silver is closer to $30 than current $20 that will be reality. 350 million ozs times $5 = $1.75B Or almost $20/sh FRMSF/FR.TO That's a quadruple from here.
When I posted that FR.TO was $3.97
Today it closed at $5.86 new 52 wk high UP 47.6%
You're welcome. Slvrizgold is always here for you to illuminate the BEST silver and gold plays.
It might be chasing it to buy here but the all time high is over $6 so I wouldn't be surprised to see this level attacked soon the momentum is there for silver. I would be real real keen to load up closer to $5 and back up the truck in the 4s which I think is impossible barring a $3-4 drop in silver which considering the physical shortages and seasonality is unlikely.
Good call on First Majestic Silver. That was $3.97 when you made the post on July 24 and today it touched $4.99
Over 25% gain in 5 weeks. Not bad. Thats over 250% annualized.
FWIW, First Majestic is still trading UNDER TEN TIMES PERVIOUS Q'S CASH FLOW!!! A money minting bargain and sure fire long term silver bull core position to defintitely own!
FIRST MAJESTIC AWESOME QUARTER - BLOWOUT EARNINGS AND CASH FLOW!!!
Wow, these guys are looking to be first in class. 10 cents net and 14 cents cash flow per share. Not too shabby for a C$4.50 stock. Annualized that is 11 times earnings and 8 times cash flow with no debt and strengthening balance sheet and significant room for production increases in the portfolio. Oh and don't forget silver is going UP UP UP. The most undervalued substance on the planet imo.
You've done a fair job at bringing attention to this equity. This will be my only post in support, because I've been invested in FR for several years.
They just completed the 3500 tpd La Encantada mine upgrade and this is why the valuation seem so crazy. The market is in summer doldrums and has not priced in the dore bar production vs. concentrate previously produced at this mine.
At 6 Million ounce production and 93% of revenues from silver, FR is a mid tier producer not a junior penny with a few 500tpd mills... They have two other producing mines and two development projects with a total of over 300M ounces proven and probable resources. Additionally, they sell silver from their mines on their website, minted under contract by NWT Mint and Monarch Precious Metals.
I think the current valuation is cheap, and I also own their $3.50 B warrants, symbol FTMWF.PK, which offer nearly 4x leverage compared to the common. If you think silver is going on a run between now and next March when these expire, the current price is compelling.
Lastly, with cash flow now positive, the company is working to list in the US before year end. GLTA.
Anybody follow Great Panther? That was a $2-3 stock in 2006-2007 and dropped to 20 cents in the crash. Its built a huge base on high volume and is sitting at the bottom of the range and looks poised. Very cheap company.
This company produces 2.5 mil ozs of silver going to 3.8 MM in 2012. 70 cent stock - 100 million shares.
3.8 MM oz Ag at a $10 margin is 38 mil$ cash flow. This thing is under $70 mil USD.
Think about this people. Pan American is a 25 mil oz silver company with around $3B market cap. Great Panther produces 10% of what PanAmSil does yet PAAS market cap is >40 times greater. This seems unwarranted considering smaller companies can achieve greater y-o-y growth than manture companies. If anything they should trade at a premium. We'll see.
Never forget that silver is the BEST asset to be long especially if you have long time horizon and ability to build positions on weakness. Silvr is the most undervalued of ALL commodties on every metric. Silver is manipulated, misunderstood, scarce in supply, vital to industry and under-owned.
The pricing mechanisms on COMEX and LBMA are CHARADES. Farces. Pure chutzpah and chicanery. The situation will RESOLVE to its NATURAL course in due time.
The math is compelling...there is either a problem or it is a great bargin...Owned shares previously but saw the underperformance and took small profits and got out....Thanks for reigniting my interest....I'll do some DD..At 10 times cash flow or operating profit the stock could be five times higher than it is...in 2012 when it hits its production targets.
If anyone is interested in a small mine then they should buy and operate one of their own. You can buy a placer for not more than several thousand dollars.
Gold and silver mines for lease or for sale.
Gawd, do I have to provide the symbol. Doesn't anyone know how to use a computer?
BTW, the other poster is WRONG. FR.TO trades over 300,000 shares daily and its pink sheet listing is FRMSF.PK
I tend to steer away from stodgy old companies that have hit their plateau and glory years in the rearview mirror.
First Majestic has 1/4th the silver production of Pan American Silver and that's nothing to ridicule. The market cap is $400 million. Everybody is entitled their opinion.
I would rather own a silver producer than just about ANY OTHER commodity in the universe, even gold.
In 1980 1000 ounces was worth $50,000. Today its worth $18,000. Its only just beginning. There isn't enough silver out there to satisfy demand. Incidentally a 1000 bar of silver would buy a median priced home in most US markets in 1980. Today's median home cost well over $200,000 - implying a $200+ silver price.
First Majestic Silver Corp; - ----
Volume is only 44,110 on a good day.
First Majestic is listed on the Canadian exchange:
Volume on TSX averages less than 120,000 per day.
For a few good reasons, I steer clear of low volume stocks.