Margin just went up on gold and silver at COMEX and the volatility measure on their trade is thru the roof. The traders at the big banks do not have unlimited runway...far from it in this regulatory environment. It would surprise me if they throw in the towel. If that happens, we will see huge gains.
Not sure how your math works...if it pulls back $10, yeah, EXK price will suck. @$20 silver, this think it worth $6. Each dollar of silver add $.78 cents at 20 P/E. You are seeing the price move now, investors get it If you don't believe in price of silver, go somewhere else.
If I do the simple math of using Q1 earnings, 35% tax rate (no idea), 20 P/E multiple (almost same #$%$&P 500), keep production the same and use today's gold and silver prices, I get $6.15 per share. I bought a ton of shares and calls last week, so can't wait to see tomorrow's price. I think the production numbers and P/E ratio are conservative to say the least. Also, factored in some dilution on shares as well.
I think they sold more shares over the past several days as well, which would be smart to get their mine expansion moving, which probably has kept the price down.