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Silver Wheaton Corp. Message Board

  • chemaes44 chemaes44 Feb 18, 2011 8:56 AM Flag

    $gold:$silver ratio broke 45 yesterday

    I remember just a couple of years ago when the ratio was at the 45 to 46 level.

    Today, with it breaking that level and going lower, yesterday's number being 43.60, with a comfirmation closing price 1.5% in the right direction, the ratio is projecting to head to 28.

    What does this mean? Experienced PM fund managers weight their portfolio's per the ratio. A rising ratio causes them to weight more heavily in gold because proportionately gold will have greater gains. A falling ratio causes the fund manager to weight more heavily toward silver because it proportionally will provide more gains.

    With $GOLD:$Silver falling through support, more investing money will now flood into silver comparatively, than compared to gold.

    Even it gold didn't move at all, which is hardly likely, and at current gold prices of $1384 using a 28 ratio gives $48 dollar silver. Factoring that gold will likely be much higher gives us a projection that silver will be higher than $48 sometime in the immediate future.

    Given that the ratio fell 20 points in a five month time frame in 2010, it is not unreasonable in my opinion that 28 is reached this year.



    Good trading
    chemaes

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    • chemaes,

      I replied to your post when you predicted 28 and said if we broke 40 we would be lucky. Looks like you may be on to something here, since it is now under 40 and going down.

      This is really going to make 2011 earnings soar. $2.25 may be on the low side.

      Jafa

    • that would be easier than tracking down all the miners they buy from and see how their production projections are. They should have that info on hand.

    • well I didnt make that report on sales for 2011 up I can only assume right now .I will call when they open As a shareholder, they should be able to explain that statement The number, btw ,is 1 604 684 9648 if someone wants their own explanation from SLW Im only bringing it to your intention for all our benefit, as we all learn on here , I hope

    • Gold down and silver up today..How do you like that ratio..HI-HO SILVER...No complaints here today over SLWs performance to the silver price.

    • sales should be good, their projections are very important. With the price of gold high you know mines will ramp up all they can.

    • that would be good, please if you do let us know what's up.
      Do you think there is this much interest in us or a monster short squeeze.

    • argin(%) EPS Growth (%) Sales Growth (%) Income Growth (%)
      SLW
      Silver Wheaton Corp

      Over the last twelve months operating margin at SLW was 59.82%.


      The most recent EPS was 0.6162.


      Though the industry is experiencing positive sales growth as a whole, SLW has been unable to grow sales and is losing market share. This reverses the trend from the previous year when sales growth at SLW led the industry 33.06% to 25.93%, respectively.


      Income growth at SLW was 583.54%.

      I didnt like the statement above re sales ANY comment??

      • 4 Replies to legaldeagle
      • argin(%) EPS Growth (%) Sales Growth (%) Income Growth (%)
        SLW
        Silver Wheaton Corp

        Over the last twelve months operating margin at SLW was 59.82%.


        The most recent EPS was 0.6162.


        Though the industry is experiencing positive sales growth as a whole, SLW has been unable to grow sales and is losing market share. This reverses the trend from the previous year when sales growth at SLW led the industry 33.06% to 25.93%, respectively.


        Income growth at SLW was 583.54%.

        I didnt like the statement above re sales When I spoke to them last week they expect only 15% PRODUCTION this year He stated 2013 will be their next big year as a new mine opening He did say stock price will have a variable called the price of silver that they have no control over

      • Hers the rest..

        Fundamentals
        Compare Silver Wheaton Corp to other Companies or Indexes
        Price/Earnings Ratio (TTM) Price/Book Ratio (MRQ) Return on Equity (TTM) Total Debt/Total Capital (MRQ)
        SLW
        Silver Wheaton Corp

        Investors have moderate growth expectations for SLW given its PE ratio of 58.8x, compared to the Gold & Silver industry average of 16.8x. Analysts do not believe the company warrants the above average valuation with a lower forward PE ratio of 22.7x.


        Last quarter the Price to Book ratio at SLW was 6.4x.


        SLW has one of the highest ROEs of all companies in the Gold & Silver industry. Breaking down the ROE, SLW has a profit margin of 59.82%, an asset turnover of 15.6x and leverage of 1.2x.


        Although the amount of debt used by SLW in its capital structure is low, at 16.12%, it uses more debt than most other companies in the Gold & Silver industry.


        58.8
        58.8

        6.4
        6.4

        12.0
        12.0

        0.2
        0.2

      • what are we seeing here legal, short covering, or just a good deal?
        Had to buy quick this am.......only held 500 over night
        looks like it wants $38 for the day

      • Where are you getting this information "SLW is unable to grow sales"? Seems to me that each quarter sales are going up. This makes no sense.

        Jafa

    • Looks to me like the recent bottom is firm on Jan 27th for AU:

      http://www.usagold.com/gold-price-live.html

      Be well

    • You are pretty optimistic at 28. I was thinking if we got below 40, it would be great. If your prediction holds true, SLW earnings in 2011 will be approaching $2.50 - $3.00 share. SLW might be over 60 with these predictions. I like it.

      Jafa

 
SLW
19.16-0.19(-0.98%)Apr 24 4:01 PMEDT