Can anyone provide a logical explanation of the steep decline in SLW today other than blood sucking Hedge Funds placing naked short trades in large volumes? This is not logical and barring any news soon you have to believe this is truly an opportunity to buy shares of SLW.
There is no explanation. That's why it keeps freefalling. Nothing has changed fundamentally from it being crushed when it was in the mid-30s. This is a great opportunity; however, with costs rising over the last 2 years and SLW issuing a dividend. At some point they may have to cut the dividend as their burning thru their cash reserves. If SLW or anyone else does it, that could lead to another sell-off. Hedge Funds are probably shorting in the form of options, but the real selling is people who have been holding this since 2008 are protecting their postion or people that are throwing in the towel who bought in the mid-30s+. This is a great long-term purchase, but the bigger catalyst will be SLW surviving. They could get bought out, but shareholders wont see much of a premium as right now it's all about survival.