Most gold and silver companies have started showing signs of a halt in the fall. The huge volumes accompanying the fall of all companies has shaken the faith of investors in the sector. However, the current recovery in SLW has to be seen in the light of slightly lower volumes compared with the 10 day average. However, during its fall on Friday, the stock recorded high volumes of 7.1 million shares. During the recent rise the volumes were much lower. This indicates that there is a possibility of a correction back to test $22. Hopefully, that crucial level will hold, and it will make an attempt to cross the 50 DMA of $28 over the next few weeks / months. This is directly linked to the prices of silver and gold. Credit Suisse lowered the price target of Silver Wheaton to $38. The negativity can not be turned around in a few weeks, and will require a few quarters to change the sentiment. Further, despite the fall, the stock is still trading at 10 times sales and 2.78 times book value. The good performance in the last quarter has lost significance in view of the overall gloom in the sector. The valuations for the entire sector have fallen, and it seems that several companies are trading at a discount to book value. This is actually a good time to scout for gold and silver assets which are available at depressed prices. e.g. Pershing Gold Corporation (PGLC) is about to start production in 2014, and is available at a massive discount to its potential. For speeding up its development / production, even companies like PGLC look for investors / strategic partners. This is a good time for getting a good deal. e.g. Coeur D' Alene (CDE) had taken a stake in PGLC a few months ago. Such deals done during gloomy times lead to good returns in better times.
Major holders does not list CDE. They must hold little or no shares now.
I look at PGLC as a #$%$ game.No mention of any mine on homesite..Did I miss something
As far as SLW is concerned,see my posts on "Remember When" title.