The long case for EXK - All gains from past 2 years erased from stock price
But have they been erased from the company? Let's stop to consider just a few items:
1) Silver has fallen to around 2 dollars higher than it was the last time EXK was at this price.
(No real impetus for selling here)
2) EXK's cost of production per oz of silver is still in the 5.00 to 6.00 area
(fantastic margins remain - no impetus to sell here)
3) EXK has made several large purchases and discoveries and as a result has known reserves of around 4x as much silver in the ground as it did then. (strong impetus to buy here)
4) El Cubo Mine on schedule but not yet in full swing - we'll give pps a 20% hit for that until proven otherwise
All things being said and done, I see EXK with a valuation 80% higher than we currently stand as long as silver holds above 25.00 per share. At 21.00, the next level of support, I still see EXK 30% to 40% higher than where we are.
ONLY THE LUNATICS and BROKEN HEDGE FUNDS ARE DUMPING TODAY. JOIN THEM OR NOT - THE CHOICE IS YOURS.
Great post. I'm like you. There are a plethora of reasons to buy but the only reasons that really matter today are the ones to sell. I don't know who or why someone would sell here. It pains me to go against the market. I just continue to believe that the saver is more virtuous than the profligate spender and that karma will right itself in time.
Actually there is only one reason to buy a stock IMO, that's becuase you believe its PPS will appreciate. However the reasons to sell are legion. The recent sell off was triggered by the last acquistion, but then negative momentum took the reins and is still driving the price down.
If, like myself, you thought that $7 was a good entry point with expectations of gain over the next two quarters, and you based that belief upon sound DD, then nothing really has changed. You can discount sector decline and/or this gold correction for those forces were not and should not be part of your consideration. Now and then the market turns against us, but that is only temporary (even if it seems forever) and all the positive factors that you previously considered will materize in higher prices when the market allows, which it will.
I have been going "agaisnt" the market for years, and I haven't any lost money since 2005, when a CEO lied about the business plan. I only buy stock that I am willing to hold, although if and when a new opportunity arises I will take profits without looking back.
My advice: remain confident and flexible. If I wasn't all in already I'd be buying with both hands today.