Respectfully, that's an uneconomic reason. It doesn't matter how many pieces you cut the pie into, it's still the same pie. Sure, you may get a bump initially if some institutional investors bought in, but eventually that sugar buzz would wear off.
Who cares? A split or a reverse split makes no difference to the company's economic value and will have no lasting impact on the stock value.
"A jury will overturn the positions."
News, please elaborate on your opinion... a jury will rule against the position being taken by the plaintiffs or they will rule against the banks which will ultimately lead to their closing their COMEX positions? Regards,
Oaks, it's common knowledge that Morgan and Peace dollars contain 0.77344 ounces of silver per coin and are 90% Ag and 10% Cu. If you google it, you'll find plenty of supporting content. Silver Eagles are .999% silver, but certainly they were never intended to circulate as currency. But who knows, at some point they very well may.
Dollars include .77344 ounces of Ag. Dimes through halves are .7234 ounces of Ag per dollar face, but typically sold at .715 to account for handling loss.
These problems have been building for decades. Bush and Obama are both at fault as are all their predecessors beginning with Wilson. They have all spent what they didn't have to buy votes or to attempt to avoid/soften normal free market business cycles.
The Chinese have an ancient saying... "May you live in interesting times." We certainly do, if that's any consolation for what's coming. We're currently living through the unwinding of decades of debt and deficit spending. It's been ugly so far and unfortunately it will get much, much more ugly.
To make this a Bush vs Obama debate is frankly an oversimplification of where we are today thanks to things such as the fed, fiat money, abuse of our reserve currency privilege, and government leaders who have bought votes through an incredible level government deficit spending, including entitlement commitments that can never be met.
In the meantime, let's just understand what is occuring - and let's make tons of money in SLW which is benefiting from many things in addition to these issues.
"j1253jm - Your on the money"
News, it's "You're on the money"
Everyone, let's keep the discussion at an intelligent level.
Sorry, it's a pet peeve.
Ahhh, you are correct about that.
The point I was making was that 10 dimes doesn't weigh the same as 1 dollar and dollars don't typically carry the junk moniker.
I don't mis-speak.
Pre-1965 dimes, quarters, and halves are "junk". Dollars (Morgan and Peace) have a different metal composition and are not considered junk. As I said, dollars are .77344% Ag and junk is .7234% Ag.
They are .77344% Ag plus they carry numismatic value, versus junk which is .7234% Ag and currently carries no numismatic value, but who's counting.
A contract is a contract. Our risk doesn't lie with the other party deciding to change a deal they agreed to, but rather a government deciding they want a bigger share of the pie and nationalizing or adding some type of new excess profit tax.
At this point, I view this risk as low, but we all should monitor it.
Good analysis. I think a $50 Ag price by 2013 is reasonable and could prove to be conservative, but we won't still be trading at 30x earnings then because it's unlikely the current growth profile will exist at that point. A 12x PE in 2013 would be strong and reasonable at that point, and still leave significant upside opportunity in the stock price.
They should not alter their business model. If they can't find other Ag stream deals in the nearterm that meet their criteria, I'd be ok with them leaving the cash on the balance sheet for 12-24 months while they continued to look for good stream opportunities. Beyond that, they could begin returning cash to shareholders either in the form of a dividend or via share repurchase. I'd lean toward share repurchase because they can strategically buy and support the price of the stock and not lock themselves into an annual capital/cash commitment.