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Silver Wheaton Corp. Message Board

kazansky_98 7 posts  |  Last Activity: Mar 3, 2015 11:25 AM Member since: Apr 19, 1999
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  • Reply to

    15 years to get back their investment on this deal

    by dbtunr Mar 3, 2015 9:23 AM
    kazansky_98 kazansky_98 Mar 3, 2015 11:25 AM Flag

    All I care about is the return I get on my investment if I do a deal like this. Is the deal net accretive or dilutive. I am not sure what you don't understand but I have already made a lot of money on this deal from the long side and it is 10 o'clock in the morning. Bought April 21 calls, which are a scratch, and sold their stream at 16.50. picked up 30 cents on 40,000 ounces. Your still trying to figure out how much profit they generate each year off the added production and delivery to figure out how long it takes them to get all their money back in X amount of years, which is irrelevant to their ROI on a yearly basis. What did they invest and what will their yearly return be. Are you happy with that or not, and if so you take it and if you aren't you sell it to me below cost as I hedge it off. Swapping silver for gold here as well. Now, I am finished with this thread as I can see you aren't grasping the deal and how it plays out. But like I say, the market needs sellers for their to be buyers. I took your trade. The End

  • Reply to

    15 years to get back their investment on this deal

    by dbtunr Mar 3, 2015 9:23 AM
    kazansky_98 kazansky_98 Mar 3, 2015 10:25 AM Flag

    Because its the stock market and the deal closes the 17th. All that matters to me is that I read it and I like it and I am buying April calls and shorting silver and gold. If there weren't different takes there wouldn't be opportunity. I hope it goes lower as I can add cheaper and keep hedging off. The spread on their delivery stream is cheap here and I have no problem building positions as I need people to sell to do so, as I could care less why people are selling and what their circumstances are personally. The present to future price of their delivery stream is all I care about

  • Reply to

    15 years to get back their investment on this deal

    by dbtunr Mar 3, 2015 9:23 AM
    kazansky_98 kazansky_98 Mar 3, 2015 10:11 AM Flag

    Go to their website and check out the PDF on the deal. The math is already done for you on the deal

  • Reply to

    15 years to get back their investment on this deal

    by dbtunr Mar 3, 2015 9:23 AM
    kazansky_98 kazansky_98 Mar 3, 2015 9:54 AM Flag

    That's how they do every deal. Silver equivalent payment of sub $5 an ounce, nothing new here, they make the spread on the difference. 11.5% ROI and then all gravy. This is their entire business model. I agree if you don't understand it, you should definitely not partake in the cash flow. Every deal they have they pay $400 an oz. for gold. They get 50% of their gold now for the life of the mine, plus any benefit from further mine development which there is a lot of room in the feasibility study. This is a great deal and why people invest in them. Confused as to why you think this deal is different than any other deal on their books. this is a monster and very accretive immediately, the are already receiving production benefits as of Jan. 1, 2015

  • Reply to

    15 years to get back their investment on this deal

    by dbtunr Mar 3, 2015 9:23 AM
    kazansky_98 kazansky_98 Mar 3, 2015 9:48 AM Flag

    It's cash flow, have you ever purchased an asset in your life for cash flow? Who wouldn't purchase something with an 11.5% ROI. This is how business works. This is their whole business model, you would rather they shut down? I don't understand your thinking other than maybe you are confused how finance works?

  • Reply to

    15 years to get back their investment on this deal

    by dbtunr Mar 3, 2015 9:23 AM
    kazansky_98 kazansky_98 Mar 3, 2015 9:29 AM Flag

    15 years? It's an 11.5% ROI in year one alone and greater in years out. It's a great move and shows why SLW is the biggest player out there. SLW's dividend will increase as a result as well

  • Reply to

    10%+ dilution for 1 deal?

    by dbtunr Mar 2, 2015 5:12 PM
    kazansky_98 kazansky_98 Mar 2, 2015 6:57 PM Flag

    This is a bought deal, not an underwritten secondary. They have agreed on this price a while back. It is immediately accretive to production and delivery. This will increase the dividend as well in the near future. Bought deals are rare, and usually done further below the market than secondaries. It shows how willing Scotiabank was to take this whole piece on their books at this price and the fact that we were trading only 70c above the deal is remarkable. Any dip down here can be bought heavily, so I do not think the dip lasts as the SLW earnings need to be adjusted upwards throughout the future as they are receiving the updated production and delivery starting Jan.1 ,2015. Thus, first quarter and so on need to be adjusted upwards substantially as they are adding 20% or more Silver Equivalent ounces in 2015 than were expected. This accretion fully outweighs any dilution occurring. No one has obviously thought this through yet as it is being offered in the after market as if a secondary. Needless to say I have picked up as much as I can until the market opens tomorrow where further leverage can be deployed in the April call contracts.

SLW
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