You make no sense. If you think PAAS going to 7.50...why put a buy at 9.70? Wait for silver to drop to lows...could be 10 could be 12 or this could be the low. Never bottom fish. Wait for the uptrend. Silver is a clear downtrend with gold....simply be patient and wait. Do nothing.
I am long a bunch at 4.75 and in for the longterm...If it goes to zero, it would not kill me...so I say cut the divy and preserve cash. Who cares if the shares fall 1 buck lower...lets survive and prosper with way higher gold prices in a year or two or three. I dont need a measly dividend now.
Gold and silver are both being slammed by central banks and hedge funds and you cannot fight this atr the moment. its unfortunate, but clearly the way it is.
With GDX touching 52 week lows. PAAS will likely be at 52 weel lows soon. Gotta be nuts to buy right now, at least withought a tight stop/loss.
Im long silver and PAAS, and to the dude who said silver wont be 15...I can only say, it sure looks like it heading there. The key is to not have any margin whatsoever so not to be forced to sell down there. The trend is clearly down at this point and it looks like gold heading to 1000, thus silver near 14
hat is 100 dollar silver prices in 3 years. No clue where PAAS willl be then as countries could increase royalties and/or nationalize mines.
One should have max gold/silver exposure with some minimum miner exposure imo.
the bonehed move by mgmt will end up costing shareholders about 7 mil bucks...at least they recognized the idiocy of their move and cut it.
I added yday and PAAS is my largest holding. Looking for 35 silver in 2014 and PAAS at 25-30 bucks. 100 dollars in 3 years.
"As of today, there are only 300,000 ounces of silver remaining from our hedge program, which we'll settle before the end of this month. Pan American will again have 100% of our future precious metal production unhedged and exposed to volatility in silver and gold prices. This is the strategy that the majority of our shareholders want us to follow"
What is amazing is that the CEO was hinting at a loss at the last conference they attended, and now they post a gain?? I find this a bit perplexing and dishonest.
Havent had time to look in detail but looks like they covered their hedge or at least some of it. Will look into more details on that and post once i find.
I disagree. I am a longterm holder and think the dividend cut would be looked upon positively. Preserve cash for a quarter or a year is very good for longterm. I hope they cut it and I own a bunch.
I agree on 13, then 15, 20...but we will first likely hit 8 dollar range. PAAS will post a loss next q. Mark my words. Would not be surprised to see the dividend cut in half at least.
No, I think they will cut the divy because they cannot afford to pay it out while they are losing money. Its only logical that when a company is losing money or breaking even, that dividends are not payed. Q ending Sept they lost money according to the CEO during his speech at the investment forum. I think at 21 bucks they are in the red....so why waste money on a dividend.
I am log at 10.80 and sold 1/2 yday at 10...just so u understand I am not a basher at all.
why I think divy is not safe:
1. you can almost bet that the next earnings report will show they actually lost money. Read the transcript from CEO and the last conference
2. They lost money on the idiotic hedge
3. They are likely at break even at 22 silver in the current quarter, although things seem to be improving.
IMO, the divy should be slashed as i am a longtermer with the position I have ( I wold also like to get back some shares at the 7-8 dollar level which I see as realistic afrer a divy cut.
one thing Iu learned from experience is to never buy at lows. I sold 1/2 my position today at 10. 8% loss on that. Hopefully this is bottom, but I doubt it unfortunately. Discipline is key when buying stocks and the trend here is down. I cant see them maintaining dividend.
there will NOT be a default. to think that there will beis simply ignorant and foolish. Maybe down the road there could be a default, but for now they have access to an unlimited printing press. People should be buying silver, gold and good producers ( although producers shold bea minimal amount as risks are very high ...especially nationalization risks )
you may be right. I have a personal tgt of 20-25 in 52 weeks with silver from 30-35. There wont be a default...just wayy more money printing. I also dont think we are at bottom in PAAS just yet. 9.00 will be hit IMHO.