As Coeur Mining, a large U.S. gold and silver producer, restructures its operations, shares could rise 50% or more.
The selloff looks overdone. At Friday's close of $11.08, the shares trade for half of book value, and could have major upside.
Coeur has a solid balance sheet, with cash of $250 million, compared with debt of $312 million. Combined with improving free cash flow, the company has plenty of flexibility in the current metals environment.
As a high-cost operator, Coeur is very leveraged to the price of silver. If it runs up sharply, the stock could double or more.
Silver is notoriously volatile, but it tends to track the price of gold. For investors who believe the metals could move higher, Coeur looks like a good bet.