As with a great percentage of stocks, investors tend to purchase shares into a companies earnings report.
I believe this has happened to SLW.
With the price of Silver near $20.00 an ounce, I feel that earnings will be a disappointment.
SLW has stated throughout the years that their earnings are dependent on the price of Silver.
It is my recommendation to their earnings announcement it would be a very good time to short the stock or purchase puts.
It is my opinion that following their earnings report and forward looking announcement during their conference call that the share price of SLW will drop at least 1% to 3%.
My feeling are that we will still visit the $20.00 to $22.00 PPS within the next six months
No one knows what the future price of Silver will be in 6 months, a year etc., but the big banks, which control the price, is responsible for suppressing it's value.
Even though they have control of the price, the devaluing of the American dollar by printing billions and billions of Federal Bank notes, there is a good possibility that most of the world's economy could possibly sway away from the American dollar and purchase hard assets such as the precious metals to back their currency.
This would make for a huge upside to the value of Gold and Silver.
My opinion is that this will not occur for quite some time!
I need a good laugh so I am waiting to hear what positive spin the silver bugs put on the just released earnings or lack of earnings and revenue report.
You would have to be blind not to see this coming!
I guess the positive is I expected even worse earnings but the revenues really were terrible. There must be even more expense cutting. Oh, expense cutting like their 14.3% reduced dividend, that's never a good sign folks.
Do you bagholders even watch the price of silver?
I have a core position I will hold long term, and I am selling covered calls on a weekly basis until there is a resolution between the price of silver being so much below the price of SLW. Something has to give for SLW to go much higher without silver. Earnings may precipitate the pullback the TA guys have been expecting, whether they be ok or not. I am more worried about the downside short term than I am that SLW runs away from me.
Obviously the stock could go either way on earnings but even if it pulls back by as much as 10% it's still had a great run so far this year. I expect it to close out the year strong with spot gold and silver likely to become stronger this fall and winter. But pretty much any metric you use silver is undervalued with most miners mining right now either at break even or at a slight loss. SLW is in a great position with their streaming contracts so the lower price doesn't hurt them as much as the traditional miners.