Charles Oliver, HBSc CFACoeur D'alene MinesCDEPAST TOP PICKJan 15, 2013
(A Top Pick May 24/12. Up 42.03%.)People still think of silver as an industrial metal but he believes it is money. In the weakness of the US, European, China slowdowns it got a bad sentiment holding it back. With China slowly ramping back up and US, hopefully, not hobbled by changes in policy, the economy should actually start to move forward and silver should do very well this year.
Now is a great opportunity to buy miners. CDE has updated estimates which has triggered street upgrades. They just bought New Gold, which will improve margins.
The best time to own silver stocks is from January to March however, November can be fairly decent. This stock has recently broken through a level which is fairly positive. The next resistance level is $37.10.
Primarily a silver producer and one of the largest on the planet. Doing 19 million ounces right now. Also do 220 thousand ounces of gold. Trading at about 6X next year’s earnings. Have been on a major build out over the last 5 years. Dirt cheap.
Have gone from about 10 million ounces 5 years ago to 20 million and will make about 500 million EBITDA this year. Trading at about 4-5 times EBITDA. Cheap. Expecting a dividend next year.
Under performs the commodity early in the winter. Silver stocks have corrected significantly. He prefers Silver Wheaton. Can’t find many precious metals he would own.
Likes gold and silver longer term. Owns the silver iShares (SLV-A) and complements this holding with stocks like Coeur D'alene (CDE-N) and Scorpio Mining (SPM-X).
(A Top Pick Feb 25/05. Down 9%.) Still likes. Gold/silver stocks have been in a corrective phase making big tops around December03 to February/04.The low in the $2.75 area is probably its low. Would still buy.
The Gold/Silver Ratio Chart favours silver over gold. This is a senior stock. Had a potential big double bottom in 2004. Need to get through its November high. There are going to be loaming silver shortages in the world.
(A Top Pick May 24/12. Up 42.03%.) People still think of silver as an industrial metal but he believes it is money. In the weakness of the US, European, China slowdowns it got a bad sentiment holding it back. With China slowly ramping back up and US, hopefully, not hobbled by changes in policy, the economy should actually start to move forward and silver should do very well this year.