I just can't believe it. I have checked and rechecked the numbers. We are at a one-year forward P/E of around 12 or 13. We have more than a doubling of production over the next few years (certainly by 2015). We have silver prices that are likely to be 30 or higher over the next year.
So why is the market treating this stock like a dog? If it were company-specific, the whole sector would not be down, but it is. That leaves market incredulity regarding the future of silver prices. Markets seem to be pricing silver in the 15-20 dollar range. I don't see that as being possible long term (although maybe we will dip briefly to that level).
the stock market has been flat for a decade. That is not great. Those who have been clever have made money, but most of the "top 50%" and a good fraction of the "top 1%" lost money in investments over the last decade. Ask the average working stiff how his registered retirement plan is doing.
And it will all get worse in 2012. Why? Because in 2012 the banks will pay and the working stiff will not bail them out. The US is moving towards insolvency. The world has not faced a situation like this in modern times. Never has there been a dominant reserve currency like the US dollar. The UK pound was a global reserve currency, but when it stumbled after WW2, the US came in to prop up the UK by buying its bonds. The US was big enough to do this because it was still in the process of expanding into a largely empty and resource rich continent.
In 2012, there will be no bigger economy to step in to save the US. Even if China could do it, you wouldn't like the results.
I don't say this because I am an "occupier". I am a capitalist through and through. I see opportunity inthe building storm and will seize it. These past four years of turmoil have been good to me. Turmoil unseats those and the top and creates opportunities for people like me.
Happy New Year.
Good timing for your post. I was looking at the $silver monthly chart and silver could drop to $20 and still be in its uptrend. And from the looks of the head and shoulders pattern I would not be surprised to see weakness in silver, specifically, not gold, over the next 5-6 months, culminating in a drop from 29 down to 20. I say that because that would complete the pattern. Otherwise, real silver strength would halt the decline at 25. And the Pan Asia Gold Exchange opens in June of 2012. So, w/o doing the calcs it could mean PZG gets bought out at $3 - $3.50? if in H1'12. What is amazing to me though is the cash sitting on SLW, PAAS, etc. These companies are CASH MACHINES so the only logic I can make of it all is that the market is forecasting further silver liquidation by European Banks, et al because they're gonna have to sell their good assets to raise cash. Then, watch out, after that if you're not in, the BULL is leaving w/o you. Imaging where PM's will be trading Dec '12? - I would say significantly higher for gold and I'm going to say $50+ for silver. US nat'l debt will be $16.6 trillion @ that point.
Amobear: How are you? The land holdings and long term leases for PZG are worth 5.25 a share alone. The assay results keep improving. They have 565,000 arces just in Mexico. Their are several interested parties, but the shorts do not know nothing.
Of which, and everyone keeps forgetting this, just because silver may dip to that, SLW may have enough clairvoyance to HOLD ITS RESERVES!!!! Just sayin....If someone here is smart to hold their physical and they have two bars, how brilliant would it be if it were two million bars.