Pan American Silver (PAAS.TO)

The silver sector has not done as well as the other commodities. It was more interesting a few years ago. Pan American Silver was on his watchlist a few years ago but he is not following it now.

(Market Call Minute.) Thinks this is going higher.

Silver stocks do very well, normally from around the middle of December right through until the end of February. As you get to the end of February, it’s going to be an opportunity to take some really good seasonal profits.

Superior management with good assets. They have a limited growth profile unless they can sort out problems in Argentina.

Likes silver at these prices, so the question is, what would be a good silver company to pick up. He does almost all of his buying at the end of the year, so he won’t be looking at this now. The name has a lot going for it. Pretty clean in terms of the financial statements. If silver goes up this can do better. The all-in price that they mine at is pretty reasonable. This has quite a bit of potential and has good properties.

Buy and Hope is not a good investment strategy. He predicts sideways moves at best. You want to buy at lows and get out at highs. The company is fine, however. He likes GLD-T for gold exposure.

With silver, you have to be patient. The key matrix that he looks at is cost of production, and theirs is low. His favourite is Silver Standard (SSO-T).

This is a pretty volatile stock. The one thing it has going forward are the 2 bottoms that are showing on the chart. He thinks we are going to see a little bit of floor coming, so it could probably come down a bit further, maybe in the high $10-$10.50 range.

(A Top Pick Sept 17/13. Up 41.63%.) Pays a wonderful dividend. Doesn’t have a lot of growth, which is one of its knocks. There are a couple of catalysts that could propel it. Everybody hates Argentina, and they have the Navidad asset there, one of the world’s largest undeveloped silver projects. 3.5% dividend.

Seasonality in silver is very similar to gold. The 1^st period of seasonal strength is just starting right now. Chart indicates that it has recently established an upward trend and broke above a key resistance level. Outperforming the market, and is above its 20 day moving average. Good opportunity to be a buyer of this.

(A Top Pick March 4/13. Down 3.54%.) Pays a 5% dividend yield. Fairly stable management. Have a property in Argentina that all the analysts gave a zero in terms of valuation because of what is going on in Argentina. One day, Argentina will open up for business again. Still likes.