Wheaton Precious Metals (WPM.TO)

(A Top Pick Sept 12/13. Up 7.8%.) The price of silver is down $4 since a year ago, so this company has pretty well outperformed the price of silver. They will still have about 20% growth over the next 2 years as they own the silver stream and the gold stream for the mine in Peru. Risk/reward should be to the upside. Dividend of around 1.5%-2%.

Cash rolls in steadily, but it is tied to the underlying price of silver and gold. Thinks we are just building a phenomenal basing pattern.

Silver is positive at this time of year. July and August are the peak periods of strength. Chart is showing a familiar “head and shoulders” bottoming pattern. If it breaks above the neckline, he can see it at about $28.

This is probably good for a trade. The ”go to” silver stock. If you get a good seasonal trade, and gold goes to $1400, you’ll see this one get push to $32. You are looking at 10%-15% gain.

Silver is starting to show signs of improvement, and this stock is in that category. Chart shows it has moved up in the last 6 weeks, and has just had a gorgeous breakout. Outperforming the market and above its 20 day moving average. Trend is positive. Also, it has now entered into its period of Seasonal strength. This is good right through until at least the beginning of October.

As far as precious metal stocks go, this is one of the better models. They buy streams, mostly silver, at a fixed price. Any time you invest in any of these things, you have to have a view as to where gold/silver is going. We have had a 13 year Up cycle in precious metals, and he thinks we are only halfway through the Down cycle.

Owned in the past and will in the future. Technically looks very good, but it is silver that will decide its fate. Too early to buy it.

A metal streaming company. They buy silver from producers, and pay fixed numbers of dollars per ounce. Production is roughly 36 million ounces. They pay roughly $4-$5 an ounce for that silver. Likes their growth which will take it to 42 million ounces in the next couple of years, and probably 48 million ounces if you are willing to look out beyond that. Generates a lot of free cash flow. Current yield is around 7%. Likes all the elements of this company.

He loves picking bottoms, and he thinks the bottom on this one is $21.63. His model prices $28.36, a 29% upside. Thinks you are going to get a substantial bounce here. Feels this can be done for quick gains.

The royalty takers still look quite expensive and are paying something like 25X projected earnings. If there is a slight recovery, royalties are going to go up fairly significantly. If a longer-term investor, this is getting close to where you could think about buying. Looks reasonably valued compared to some of its peers.

Stock vs. Stock: ABX or SLW. If you are bullish on precious metals then this is better. Huge leverage to the upside with oil, but more volatility than ABX.

Not a big fan of a lot of the commodity sectors, particularly precious metals. The trend overall for the metals, precious metals in particular, has been pretty lousy since 2011. There is also a really big cycle for the broad commodity index that is due to continue falling for the next little while. Every time the stock gets around $30, get out. Chart shows it has made a couple of higher lows since mid-2013 which could be some encouragement. Doesn’t think there is any near-term trend in the works right now for this or a lot of the gold stocks.

(Top Pick Sep 12/13, Up 2.45%) If you think silver is increasing then this stock will also.

A well run, royalty streaming company. You don`t want the operational risk with others, but you get the upside on silver prices.

He has just a little bit left in his portfolio. He likes it and would add it to any of his clients’ portfolios that doesn’t want to take the production exposure of the silver companies. Has been selling his holdings to buy the producers. The producers’ prices right now are ridiculous. Not a bad one to be adding at this point.