In your opinion, is the movement in WTZ strictly because of the rise in Silver and expectations of Silver running, or is there anything else to this move. I could kick myself for not loading up at $2.00 several weeks ago. I'm in at mid$2-- where do you see this going to?
In your opinion, is the movement in WTZ strictly because of the rise in Silver and expectations of Silver running, or is there anything else to this move.
The rising price of silver is an important factor however there are other reasons for the sudden surge in the rise in stock value.
IMO I see the intrinsic value of WTZ on par with or even greater then APEX SIL (its nearest rival) because
a. its resource base is bigger and more diversified. i.e. lots of gold (1.2 million oz and growing) larger known silver deposit-Zinc and lead deposits worth a billion
b. The deposit is located in more of a politically/socially friendly country (Mexico vs. Bolivia) Location! Location! Location!
c. Startup capitalization costs are about 1/3 of SIL which means it can be brought on line quicker with less CAPEX burdens
d. Market cap is lower then SIL
e. Insiders are not selling WTZ whereas insiders of SIL are sellers
These are a few of the compelling reasons why I chose to accumulate WTZ starting at $2.
As of yesterday's close the price difference between WTZ and SIL stock was over $13.38. At some point in the very near future the stock values of the two companies will meet. How soon? God only knows. I would be very happy to see WTZ trade at $10 and ecstatic at $16 and I think that can happen this year.
Are these some of the reasons why the price escalated recently? I can only presume these are. More importantly these are some of the reasons why the volumes have increased recently hence the value of the stock.
The more people that buy into this stock the more value it will carry into the future. An ever increasing value for an ounce of Silver and Gold will also give this stock a kick in the pants in the right direction.
A quick comparison on how WTZ has performed over this past week.
At this stage of the metals bull market, money is starting to flow into the property owners. It's all about reserves in the ground; revenues are secondary. This is because as the market begins to anticipate higher metals prices down the road, the marginal producers and pure property owners begin to attract capital....the leverage they have to higher prices is FAR greater than stocks like NEM or PDG, etc.
If you are familiar with SSRI, that's essentially what WTZ is as a company. Check the chart on SSRI. I expect that as more people find out about WTZ and it's absurdly low market cap in relation to its properties, the stock should double or more quickly.