I'm going to respectfully disagree with you on why this stock went to $42. The price of silver had asomething to do with it....As to whether it should have ever been that high, well another question...
Apparently the price of silver has little to do with SLW. Silver hasn't tanked nearly as much as SLW. Their charts hardly resemble each other. SLW is being shorted f'less due to the massive call options for Jan. This crap should continue until after the 21st. Welcome to the casino!
The argument you just made, is like taking a snapshot of your girl twenty years ago, and making believe that's the way it still is.
Fact is, SLW moved 2X the POS for almost 20 months. Its deals are up 8X. The POS is up 3.5X. The silver flow is targeted 16X, biggest producers life of mine.
It may NOW be decoupled from the POS, but I wouldn't draw conclusions from two weeks trading. I would conserve capital by shorting against the box or selling covered calls and buying puts, but I am finished harping on common sense.