Opinions Hap (Robert) Sneddon FCSI
Silvercorp Metals Inc.SVM.TOCOMMENTDec 22, 2017
Hap (Robert) Sneddon FCSIStock price when the opinion was issued
As of May 27, 2026. Market Open.
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SVM shares have climbed for four consecutive days, posting a 35% gain year-to-date and a 241% increase over the past year. Per-share earnings jumped 118%, rising from 10c to 22c. Sales increased 51% to reach $126.1M. These results demonstrate the significant leverage the company enjoys from elevated silver and gold prices. The company produced 1.9M ounces of silver and 2,096 ounces of gold. Earnings per share exceeded forecasts by 20%. The analysts would feel comfortable purchasing or increasing holdings, though they recommend keeping position sizes appropriate to the sector's characteristics, the company's scale, and potential China-related risks. Unlock Premium - Try 5i Free
It is of course not risk-free, but we still like it.
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Part of syndicate that brought company to markets. Financials in China a little opaque, but company has been generous to shareholders through dividends and buybacks. Would recommend buying.
Rick Rule
Follows the overall pattern of silver. From a seasonal perspective, silver has a seasonal period from January 1st until March 31st. If we look over the last couple of years we saw a correction in 2015 and 2016 and saw a strong run at the beginning of 2017. We saw the same thing last year. This is a great setup. He likes to see a sector or stock like this pushed down before seasoning period, and then to start to go up and show some signs of strength. This is very favorable. Currently doesn’t look good at all, down to support level where we were last year at this time. But from a seasonal perspective, just enter into it on the slightest sign of strength, you don’t have to wait for a breakout. It’s set up well for the beginning of the seasonal period. Watch for a little bit more strength and then it’s good to go.
Historically, silver stocks in general, have a period of seasonal strength from the middle of December through until February of each year. The chart looks like this is off to a good start. This is a Trade, and you trade it until approximately the 1st week in March, and then you might want to take some profits.
Silvercrest Metals (SIL-T) or Silvercorp Metals (SVM-T)? His difficulty with this is the nature of the mineralization. They’ve made a lot of money mining silver, but it is difficult to get enough drill density on that target to prove up the big reserve, so he can never figure out what it is worth. It has performed well.
Usually silver will lead gold by a little bit. Everything in silver right now is looking really, really good. Chart shows a downward pattern, but has reached the upper side of the channel and should be breaking out anytime now, and do quite well through to mid-March and maybe April, depending on the whole complex. Silver is much more volatile than gold and tends to lead on the way up and on the way down.