Silver is much more of an industrial raw material than a store of value. I believe the price of silver is close to, if not below, the cost of production for most miners. At least that is something to take some solace in as we muddle through this messy silver market. If manufacturers need the material, eventually they will have to pay up to the cost to mine the stuff, otherwise it just will not be there to fill their needs. At this point, I will just hang tough and put a few hedges in for protection.
The good news is that the price of silver is below the all-in cost for most miners to produce the stuff. The bad news is that the miners with enough cash might be stockpiling silver to wait for a price recovery. In any case these prices don't seem as if they can last for very long without shortages occurring. Let's hope HL can hang in til then.
The problem is they always have these one-time occurances that cause them to miss. Believe me, they will have another one-time occurrance (excuse) next quarter as well. They miss much more than they hit. Baker should spend less time on the road with his dog and pony show and more time at home taking care of business. Or maybe I am missing the point. We might have been even worse off if he spent more time at the mine. This "management" is a disaster.
I do not know if hl or silver will go higher. Silver is probably at a bottom because it is approaching the cost to most miners of taking it out of the ground, but it may stay there for a while. HL could also stay where it is because, desspite Baker's never lived up to promises regarding production goals, the cost of production is obviously at or above the market price of silver. The Baker Boys have enriched themselves at the expense of shareholders. That is the only certainty I see.
What else should we have expected. Afterall, these are the Baker Boys. If I performed this badly on my job, I would have been long gone. These HL shareholders are a tolerant lot.
Everyone wishes there was a way. If you could tell that, it would be like a license to print money. Usually, an unexpected event such as an earnings surprise or respected analyst's upgrade causes a spike in buying and the shorts scurry to cover. That is the essence of the beginning of a short squeeze.
It looks to me as if the shorts are already scrambling pre-market. They are pulling their tricks to create a smokescreen, but this will be up by day's end.
It all hinges on what happens on Tuesday. If there is an earnings surprise to the upside, the shorts will be in serious trouble and we could see a big pop in the stock price. I think it is time to roll the dice. My sense is that if management is thinking right, they will want to have a better earnings call than the last one and will bank more of the sales as profit. After all, stock becomes currency for what has been a very aggressive acquisition program. The higher the stock price the more the currency. This will be a very good test for the astuteness of management.
What am I missing here? Why would I care to lie to you? You seem to have some trust and anger issues. Oh, that is right, you are the guy who is still stuck back in the 60's in Vietnam. I guess if I were you, I would have some trust and anger issues as well. Life is short. Move on.
Figure this. I just turned a profit of 2,000% on my Facebook options in a period of two (2) months, yet I cling to this HL loser. What is the allure? It must be silver fever. I want to throw in the towel, but I do not want to admit to having been so wrong on this dog.
I guess one hears what one wants to, but I heard him say JCP has a tough road ahead. His companies are still supplying JCP, but you can bet their receivables are well insured. He came pretty close to writing an epitaph to the company.
Now he is going to have to shop at JCP. Actually, I think he is laughing all the way to the bank. He pumped the stock and then I bet he shorted it. We will never know his real motive in buying the stock, but he is not dumb enough to buy this junker without a hedge.
I bet I was right and Soros was doing the classic pump and dump. He announced he was buying and he probably shorted the stock the next day. That is how those guys make so much money.
I am just glad I am short this sad story. Given what has happened to this company, thanks to Ackman, how can anyone be anything other than short. It is true, who is buying this stock?
Here is the difference between a good CEO and a jerk like Baker. JC Penny is on the verge of bankruptcy, yet when its CEO came out today and made a few comments, the stock reversed its decline and is up a bit. Anytime Baker opens his mouth, he says something foolish and the stock goes down, regardless of what is happening to silver.
The problem is that Baker has never delivers on any of his boasts. The timeframe for production goals keeps moving into the future because they are never met. This guy Baker just likes to hear himself talk. He will promise anything to keep his job.
He has not met earnings estimates, production goals or safety standards. Cramer had this one right. He met with the guy and was less than impressed. In fact the implication was that he is a dud. I guess we should have listened to him on this one.