opportunities = earnings... will patience will be rewarded?
BNN article “I’ve never seen a time as busy as this, where we have so many opportunities,” Smallwood, who is also one of the company’s founders, said on Wednesday in New York. “They are good quality assets with top-tier companies.”
A just released BAC/ML research report is still upbeat on SLW outlook. Free cash flow would remain strong & remains undervalued under a CRA bear case. Price objective is still $26.00 per share. The report indicates a basis for Silver est 2015 @ $16.50, 2016 $17.90 and 2017 @ $18.92. looking at the 20 year silver price range of about $5 to $41, the current $15.39 is @ the 2010-15 avg. Gold 20 year price range of about $255 to $1828, the current $1,157.15 is also @ 2010-15 avg. The question is, going forward, will the industrial & "safe harbor" demand drive prices higher. The global economy is turbulent and uncertain. The constant through history has been Gold & Silver. Will the next global panic attack propel this investment? That's how I view it.
In the report for tax years 2011-14, on a conservative basis, the assessment = a NAV decline by 29% or $3.53/sh. Under each scenario 2011-14 & 2005-10 tax years, SLW would be trading at discounts of 26% and 21% to the peer average. *** The report indicates they believe SLW is still inexpensive. Also the possibility exists that the CRA position will be invalid in court. Uncertainity reigns while opportunity knocks...
BofA Merrill Lynch report 7/7/2015 indicates BUY- PO = $26.00
• lowered PO to $26/sh
• CRA proposed $150 million tax assessment + penalties
• SLW's NAV could decline between 19-29%. Still though, *** SLW would be undervalued to its peers ***