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Silver Wheaton Corp. Message Board

  • mclandmast mclandmast May 3, 2010 2:23 PM Flag

    why does CDE suck so badly compared to SLW

    I feel like puking my phcuking brains out.

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    • As the Ag commodity price continues to move up, we may begin to see CDE's stock price rise more rapidly than SLW's. CDE's earnings are more leveraged to the commodity price than SLW's because their fixed cost structure per oz is higher than SLW's. This just means that their operationg profit % will rise more rapidly than SLW's. Simple math follows. These numbers are made up, but you'll get the point...

      SLW with Ag at $18 per oz - $18 rev, 4 cost, 14 profit
      SLW with Ag at $25 per oz - $25 rev, 4 cost, 21 profit (50% growth in profit)

      CDE with Ag at $18 per oz - $18 rev, 15 cost, 3 profit
      CDE with Ag at $25 per oz - $25 rev, 15 cost, 10 profit (over 300% growth in profit)

      Again, these number are made up and their P&L's are of course more complex than this, but you get the point. Don't get me wrong, I love SLW, their business model, and their management. I hold a lot of it at a weighted basis of a little over $6 a share and I'm not selling.

    • SLW, by design, is exposed to few risks. CDE on the other hand somehow manages to expose themselves to every risk imaginable, then finds ways gets nailed on each and every one of those risks. Its like they have a checklist.

      SLW is sort of the anti-CDE.

    • Q. Why does CDE suck so badly compared to SLW?

      A. SLW shows a consistent and fast growing profit, CDE always seems to lose money.

    • One ounce of silver only cost slw 4.00 or less. I have 3 stocks ng,slw and iag. All are up today... Slw is the better choice. Paulson and soros are in Ng gold for a reason. That stock will soar especially if barrick takes them over... I know the puke feeling been there... GL

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