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Silver Wheaton Corp. Message Board

  • sivr6651 sivr6651 Sep 17, 2010 2:07 AM Flag

    2011 EPS

    If silver averages $30 over the course of next year, SLW will make about $2/share next year. Crrent estimates of $1, are based on a POS around $16/ounce.

    A 40PE would mean an $80 share price by 2/13, when the final numbers are reported. SLW could get there faster, if the market starts pricing in future earnings, as opposed to current earnings.

    RGLD is an example of this. The stock carries a 104PE, do essentially the same thing with gold, that SLW does with silver.

    Since 2013 is even a bigger growth year for SLW, it makes sense the market would start to price in future earnings, and maybe SLW will carry a 104PE one day.

    By the end of the year, a 104PE would mean SLW would be a $70+ stock.

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    • That's very simple thinking. The PE's for these companies are high because the market is accounting for future production growth from committed silver streams. I agree that the stock prices do not reflect significantly higher Ag prices, which I also think will eventually occur (this is the reason why I'm bullish), but I certainly know that a 40 or a 104 PE will not be the case when operations normalize.

    • I like what you are saying, but averaging $30 for silver for next year may be a bit optimistic. $22 - $25 might be a better guess. Either way, it bodes well for this stock. I still think we will see $30 by the end of this year.

      I would like them to do another big deal like the Goldcorp deal. Maybe we could get another 25% from Goldcorp. They probably don't need the money now.

      SLW will not reach its full potential until 2013 or later. I hope they DO NOT pay a dividend. I would like a stock buy back before a dividend.

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