Wheaton Precious Metals (WPM.TO)

Fantastic stock to play the silver sector. We are much closer to the bottom end of the silver price range. Seasonality – we have past our best seasonal time. The bigger move probably won’t come until later in the year.

Seasonality for silver did not work this year. This one started to show signs of technical weakness and when this happens, you get out of the trade. Silver prices started coming under pressure and that broke the key support today.

Not big on silver. Tends to follow gold, but is more volatile. Doesn’t understand why silver is above $20. The major industrial use of silver in the last century was photography and that has completely evaporated. There is a big supply of silver right now.

There is seasonality and it should be favourable but it hasn’t been. It is trying to consolidate. You have to watch the current support line going back to last December.

Recently did a deal with Vale (VALE-N) to get some gold streaming production. If you want precious metal exposure, this is fine to get into. Because they have royalties on top, the cost side of the equation has less of an impact on them.

Is a good way to play silver. It is a royalty stream on silver at about $4.06 per ounce. He is not a silver bull but not negative either.

How much credence do you place on relative performance between the stock and the underlying commodity versus the stock and the market in general? He looks at a stock relative to the underlying ETF (in this case SIL) and if it is outperforming, you want to be in the stock. Next you look at how SIL is doing relative to the price of silver itself. For this stock, it has gone above its 20 day moving average, established a short-term trend and started to outperform the TSE composite.

Silver streaming company. The “go to” name in big cap silver. Lots of cash in the balance sheet. Going from 26 million ounces plus this year to around 43 million of attributable production in 2016. Trades at about 16X PE. Yield of 0.78%.

Silver (and gold) has been looking a little bit ugly, especially today. Feels they have probably being oversold. Chart for this company is a little bit erratic. Very strong support at $30 and some pretty significant resistance at around $40. Feels that it may just find a base in the next week or 2.

Has been struggling for the last little while but is about to enter its period of seasonal strength. It has not bottomed yet and look for some positive technical indicators before buying.

$39 is resistance and $27 is support. He uses daily charts over 3 years. Probably on its way down to $32 right now.

What we have seen happen is that there is a timing problem in that some sales were put off until the next quarter. Their dividend is tied to cash flow. The dividend was a bit lower in the last quarter. It should sell at a discount to the other precious metals. He would hold it at the right price, say 15% lower.

Is as close as you are going to get to playing off a pure silver trade. He gets nervous when this one gets some big down days. In an aggressive portfolio he would not be afraid to take a position and hold it into the new year. The silver trade should technically be over, but this one looks like it will really move into the March area.

We have gone through a shift in this market and you should be selling into rallies.

[Show did not air however top and past picks were posted to web site] (Top Pick Nov 3/11, Up 6.39% total return)