Every day Mr. Market quotes you a price to either buy or sell, today that price is 12 cents. I guess the Federal Reserve's money printing machine and the hint of increasing interest rates next summer pummeled $1.03# Zinc at 2.19 billion pounds of estimated supply. Better to build & replace interstate bridges at 5% interest rates then 3.25%, too big to fail always gets their way... vote accordingly..
Be right, Sit tight, hold for big profits!
I would buy the whole mine if I had the money. I would stockpile the Zinc and hold out for +$2.00 a pound. I would turn the silver into silver eagle coins and wait for +$35.00 oz. prices while simultaneously implementing a bricks & mortar bitcoin business model where people could trade FIAT for silver and silver for FIAT. If Home Depot can sell copper this way, I should be able to economically trade silver coins.
Is the mine being depleted by Anunnaki people, No. They want gold not Zinc. Other then management salivating for more share disillusion in their pocket's, there ain't nothing happening but a dipping in share price under book value of the eccentric operations price. The corporate raiders will surface soon in hopes of a bottom fish buy out opportunity as long as management is willing to be their huckleberry patsy.
I estimate 5 Billion in Gross Revenues On Sale today for 32 Million USD. Interest rates rising effects have negative effects on most stocks, unsecured FIAT debt is everywhere, most currencies are devaluing ahead of the Dollar. Precious Metals are oversold. Jessie Livermore said it best, "Be right, Sit Tight, Hold for Big Profits."
167.5 oz. Million TROY OZ. Silver (Each Tomahawk Cruise Missile has 500oz)
2.19 Billion Pounds of Zinc (Iron rusts, Zinc prolongs the process, every bridge in America is rusty)
538 Million Pounds of Lead (everybody needs lead batteries every 7 years)
126 Million pounds of Copper (Copper is always in Demand, if not by Builders by Scrappers, just ask a cop)
Zinc is the new environmentally friendly Replacement for Lead Tire Balancing weights on cars and trucks since they always seem to fall off the vehicle into the storm water drains.
IMO, SVBL qualifies as a deep discount value mining REIT with no income, but sufficient cash burn to cause a wall of worry. (Yes, I have a small position, Average Cost @ .31), But am always on the look out for value ideas.
Does any one have any other ideas in any sector that may qualify as a Deep Discount Value investment such as this?
No cash burn, OK. Earnings, OK. Clean balance sheets NOT sporting GOODWILL, OK.
I see management greedy delusion year over year, development costs delusion and maybe the Mexican government trying to rewrite the rules, but what else have I overlooked?
If Water the most coveted commodity on earth, Crude Oil second, Natural Gas third, would Silver be third?
IMO, Silver over Gold because of its many pending future industrial applications. Anything future consumable is better then something horded and stored.
Google Search: "Warren Buffett Buys 130 Million Ounces of Silver"
and you will notice that ole warren bought back in 2001
The next 20 years in our world will be all about energy. Electricity works and it's sustainable for future generations. Silicon combined with Solar is vogue & trendy today. The basic plants, tools and equipment is worth at auction 10 cents on the dollar or more.
1,253,700,000 / 230,820,000 = $5.43 a share
Property Plant and Equipment / # Shares outstanding
4,143,700,000 / 230,820,000 = $18 a share
Bottom Line, We're toast!
Small caps lead large caps, the whole F'ing market is going to correct... were all doomed.
IMO, not trading advice, just a speculative hunch. I don't know about the stock markets day to day or week to week movements.
Who knows more about the company, you or and insider?
If you wanted to retain good employees would you dilute your shares and give them to your employee as an incentive to "Save" the company?
If cash is king and you have very little operating cash, would you dilute your shares in desperation?
I agree unless they manage to burn all their cash before an order comes in, which is very likely to happen during this depression environment.
January 19, 2011 08:34 AM Eastern Time
Former Fairholme Managers to Launch GoodHaven Capital Management
Markel Corporation to Act as Strategic Partner and Initial Investor
(3) Funds, Two managers leave, Somebody at Failholme has to be the baby?
Q. When is Ben going to raise rates?
A. When countries like China, Japan, Canada, and Germany stop buying our treasuries.
At some point a treasury buyer will demand more yield to overcome present risk.
I'd say the odds favor a rate hike if the Bush tax cuts extend and if North Korea or Iran needs some military correction.
No tax revenue to pay down or keep pace with current debts in 2018
God help the United States, we just keep digging ourselves in a deeper and deeper hole.
If we are required to perform a military action, that hole will become muddy, cold, and dark.
What the hell is wrong with our congressmen/women?