I hope you're correct, but today's PPS action for NAT was really awful. Equities are now on deflation's chopping block.
Not sure what happenned around 9am CDT when the dow was down about 800 and NAT was around 13.55 then in a matter of seconds NAT dropped to about 12.50 while the dow continued to march higher. There must have been a huge sale all at once, maybe a hedge fund dumped?
Bonfire of the currencies is not a two day thing, yes, there will be some backing and filling, but the underlying theme of global deflation and the Fed handcuffed to lower rates remains intact for the foresseable future.
SSRI does have better FCF per share than PAAS, but PAAS has the better balance sheet and much better revenue per share, so I think PAAS will benefit more from a meaningful rise in silver prices as well as the dividend and buyback ability.
You have been correct as to many of the recent "crises", but competitive devaluation is a much different situation than before. In my view, the Fed's lack of move has more to do with China's recent devaluation than anything. The recent decline of PM's was due to a view that the Fed would soon tighten, but recent slowdown in global growth has changed the dynamics.
No logical reason that I can see for PAAS underperforming SSRI so badly, so I will continue on with PAAS for awhile. SSRI has been a star on a relative basis for quite awhile even when silver was tanking badly.
I really think the Fed is in a box for awhile which should bode well for PM's, just wish PAAS would participate more fully. Dollar is getting hammered.
Yeah, I think that's it in a nutshell. I thought we would see more short covering going into the announcement, but its been just the opposite. Personally, I don't see how they could raise rates given overseas markets and commodity deflation.
It seems like we go down quicker and rise slower than other miners despite the stellar balance sheet. SSRI is about to overtake our PPS. Very frustrating. I hate picking the right sector, but getting the wrong stock.
Also, NTCXF, was only up .02 on 150,000 share volume, so if the technology was believed viable then it should have moved a lot more even though its a penny stock.
Solar cells account for 5% of the silver market, so it still seems that knocking the price down 4% in one session is an overreaction, since the aluminum replacement technology still has to be proven viable and marketable.
I think I might have an answer. A solar tech company (Natcore?) has claimed to develop a way for solar cells to be made with aluminum in place of silver which obviously would save solar companies significant raw materials costs, but eliminate another growing market for silver.
However, gold is holding its own fairly well here, but silver is getting slammed. Doe anyone know what happenned to cause such a huge drop in silver v. other PM's?
SSRI always outperforms PAAS it seems like in both up and down markets. Almost all PM's doing better than PAAS today.
Sentiment: Strong Buy