Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Haha....Fed proof as well ??
SLW being called the #1 "trump proof" stock
Added some 19.40 here today! The $23 break will send this
Gold & Silver proclaiming loudly: "Deep doo-doo ahead..."
Yup. I would also encourage you to look into Negative Interest Rates. As this too will play into the precious metals bull mania.
I like silver! This should strengthen up in the coming weeks. JMO
KILLED IT TODAY WITH MY SLW May 6 $18.50 Calls. Money $$$
$SILVER firin' up the monster mash!!!
$GOLD down but $SILVER up... a divergence in the making?
$GOLD/$SILVER gaining solid traction as the world turns.
SLW share buyback from SA article: "the company buried news of a share buyback. Of course now in retrospect, the release does have a snippet in the title, but this should without a doubt have been announced separately. Both the new stream, which was the centerpiece, and the repurchase plan are key pieces of news.
So all of that aside, what do you need to know? Well. no other colleague on Seeking Alpha has discussed the repurchase plan, so I will tell you that Silver Wheaton has entered into "an automatic securities purchase plan" do that it can continue conducting repurchases of its common shares under its previously announced normal course issuer bid. Under the prior board approved plan, the company could purchase just over 20.2 million shares on both the Toronto Stock Exchange and New York Stock Exchange as well as other Canadian and US marketplaces.
Now here is the key. This plan will last 9 months. Purchases under the Plan will be made by Silver Wheaton's broker. Under the Plan, the broker may purchase shares under the Bid when Silver Wheaton management would ordinarily not be permitted (such as within specified dark periods around earnings etc.). The plan kicked off last week on January 27, 2016 and expires on September 22, 2016, and has been approved by the stock exchange. Randy Smallwood President and Chief Executive Officer of Silver Wheaton stated:
"We continue to believe in the underlying value of Silver Wheaton shares and that with our consistently strong cash flows, purchasing shares is an excellent way to provide further value for our shareholders."
The news is strong in tandem with its continued new streaming agreements. It is in shareholder's favor to buyback shares which increased earnings per share and reduces the float to which dividends would have to be paid. It also takes the pressure off of the company to actively watch share prices and decide when and how much stock to repurchase. One could argue of course correctly that the broker under the automatic plan may not get the best price because they are likely trying to buy as many shares as possible. Still the stock is under $12. Retiring shares here and below is a strong move for the company.
I know some would rather see the cash being applied toward the repurchase instead go right to shareholders. But this is a long-term play. Silver Wheaton has tied its dividend to be ~20% of cash flow. Cash flow will rise with silver in conjunction with the volume of streams in place. But having less shares on the float benefits everyone."
SLW a buy 2 articles: Conclusion "Thus, the weakness in Silver Wheaton's stock price this year is an opportunity in disguise for investors. The company will get better in the long run on the back of an improvement in the silver market's dynamics and its improving production. Moreover, since Silver Wheaton is a streaming company, it enjoys a low cost base, which will ultimately lead to a better margin performance when prices get better. Hence, in my opinion, it will be a good idea to buy Silver Wheaton's drop as the stock can deliver robust gains in the long run."
http://seekingalpha.com/article/3826776-silver-wheaton-buy-52-week-lows?auth_param=2jtbj:1ba3l3u:ab40ab22afbfe6fbed2a63a209459489&uprof=51
How Silver Wheaton is positioned?
"SLW stands to benefit from these developments. Its business model, wherein it enters into long-term silver and gold purchase agreements at fairly lower prices with global miners in lieu of up-front payments without owning or operating mines, allows it to keep operational costs under control. Also, it currently has 19 long-term purchase agreements. That should help the company as widely anticipated fall in supplies, will fetch higher selling prices in the long-term.
I also expect SLW's margins to get better in the mid-to-long term. It has a comparative advantage over the industry in terms of cash-costs.
Average cash-costs, costs without capital expenditures, administrative overheads and exploration costs, for Silver Wheaton is about $4 an ounce, while those of the industry is roughly $7 an ounce. I believe that SLW is one of the few stocks in the mining sector that are worth a look right now."
http://seekingalpha.com/article/3826766-silver-wheaton-worth-look?auth_param=2jtbj:1ba3ku7:e489378b8000f7d005ff7e3150f1d08f&uprof=51
“We remain confident in, and we intend to vigorously defend, our business structure. We believe that we have complied with Canadian tax law and feel that the court process, rather than the CRA appeals process, will provide the most expeditious avenue for the resolution of this matter,” said Randy Smallwood, President and Chief Executive Officer of Silver Wheaton. “Through this entire process, we continue to believe in the strong underlying value of our shares and continue to be active under our normal course issuer bid program in buying back our shares,” he added.
Interesting that you saw that same parallel with Oil. Crazy how Mr. Market sees this.
Bid Ask Day's Range
11.06 11.07 10.88 - 11.68
Hard to say, where is the low?
Please CRUDE ... bottom!
Looks like buyin SLW in the 12's is the ticket.
"Silver Wheaton has gained good ground on the stock market in the past three months as investors seem to have recognized the company's potential to serve the silver market's growing needs. With silver demand on track to outpace supply going forward, the price of the metal should increase. This will allow Silver Wheaton to improve its financial performance due to a strong production base as it can satisfy end market demand. Hence, I think it will be a good idea for investors to remain invested in Silver Wheaton as the stock can deliver more upside."
http://seekingalpha.com/article/3749426-silver-wheaton-why-the-momentum-will-continue?auth_param=2jtbj:1b6l5ts:bfbb1d8a194898d3fca2232d04f1daff&uprof=51
Sprott Unleashed: “Everything is a Lie… I Dream of the Day Comex Paper Exchange Can’t Deliver Gold”
Mac Slavo November 22nd, 2015
http://www.shtfplan.com/headline-news/sprott-unleashed-everything-is-a-lie-i-dream-of-the-day-comex-paper-exchange-cant-deliver-gold_11222015
Sounds like oil and gold will continue to get beat up this month. I wouldn't be afraid to own this at $12 but of course I'll wait until I can pick it up at $10 (which may never happen).
I waited until the $12 range to buy in some more.
Never underestimate the power of the manipulators in commodities market.
I've been wrong on this for the past year. I liked the price at $20 then I liked the price at $15. IMHO this is still a buy at under $13. So take your chances, this might go to $10.
A BUY article: "In conclusion, Silver Wheaton reported another solid quarter and announced a new deal with Glencore that I think will lead to strong returns for shareholders. I think shares are a buy here."
http://seekingalpha.com/article/3648366-silver-wheaton-thoughts-on-quarterly-earnings-and-the-latest-silver-stream?auth_param=2jtbj:1b3lotl:59947f1d8f1973b3847b523a05826ca8&uprof=51
Amazing... COLLAPSE OF THE WESTERN FINANCIAL SYSTEM: Shown In One Silver Chart
Steve St. Angelo | October 19, 2015 - 11:48pm
http://silverseek.com/commentary/collapse-western-financial-system-shown-one-silver-chart-14979
Silver Wheaton: Set For More Upside
Oct. 15, 2015 6:43 AM ET | About: Silver Wheaton Corp. (SLW)
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. (More...)
Summary
SLW shares have shot up over 30% in a month on the back of positive gold and silver pricing trends, but investors can expect more upside.
SLW will benefit from an increase in silver demand due to higher solar PV installations, where silver paste is a key component.
The silver market will witness a deficit going forward due to low capital investments in mines and the maturity of existing mines, leading to higher silver prices.
SLW is in a strong position to benefit from improving silver demand since its streaming agreements will allow it to tap the supply deficit in the end market.
SLW’s valuation is still attractive despite a strong run in the past month, while a PEG ratio below 1 indicates that the stock is undervalued.
The past month has turned out to be outstanding for Silver Wheaton (NYSE:SLW), as the stock has gained more than 30% on the back of a delay in the rate hike by the Federal Reserve, which has led to a positive impact on gold and silver prices. But, if you are thinking that you have missed the bus, then worry not as Silver Wheaton is still capable of delivering more upside going forward due to improving end-market prospects and its own operational improvements. Let's take a closer look.
Better times ahead for silver pricing
As mentioned above, the silver streaming company has gained rapidly in the past month on the back of the Fed rate hike delay. But, beyond this, investors should not miss the fact that demand for silver is rising fast due to its usage in a variety of industrial applications.
For example, silver is a key component in the solar industry as 90% of photovoltaic cells use silver paste. As a result, next year, it is anticipated that 70 million ounces of silver will be used by the solar industry, and this quantity should increase in the long run as solar installations gain steam across the globe. In fact, research agency Frost & Sullivan is of the opinion that global solar power capacity will increase to 668 GW in 2025. In comparison, in 2012, global solar power capacity was just 93.7 GW, indicating that this market will grow at an impressive pace.
Now, as the installation of solar modules increases, silver demand will also increase as the metal is a key component of photovoltaic modules, as stated above. But, at the same time, there won't be enough silver supply in the end market to satisfy this demand. This is because after an increase in silver production for over a decade, production is slated to drop this year due to the maturity of existing mines and a drop in capacity investments due to low silver prices.
In fact, as a result of an increase in demand and low supply, the silver market will witness a deficit in the long run. For instance, the market is expected to see a deficit of almost 60 million tons this year, and the gap between supply and demand will widen going forward. As a result, the price of silver is anticipated to improve going forward, and this will eventually lead to an improvement in its financial performance.
I'm saying this because being a streaming company, Silver Wheaton does not possess any assets. Rather, the silver that it gets is a by-product of other metals, which is why it gets the silver at a low price. Looking ahead, the company's streaming agreements will help it improve its production profile and benefit from the supply deficit in the silver market.
Silver Wheaton's streaming assets will be a tailwind
Silver Wheaton's streaming agreements are expected to deliver approximately 40% organic growth in the next five years. It has approximately 20 operating mines and 7 development projects under its wing that will allow it to achieve this ambitious growth target. More specifically, there are a couple of key mines that will play an important role in driving Silver Wheaton's growth.
For instance, the company is witnessing higher grades at the Peñasquito mine in the second half of the year. As a result of the higher grade ore, Silver Wheaton expects about 7.3 million ounces of silver attributable to the company from this mine.
On the other hand, Silver Wheaton also expects an increase in production from Vale's (NYSE:VALE) Salobo mine in the second half of the year. The company expects attributable average gold production of 140 Koz for the first ten years of the mine life on the back of a capacity expansion. In fact, last quarter, this mine had delivered 27,805 ounces of gold to Silver Wheaton, an increase of approximately 230% from last year, indicating that the capacity expansion is working.
Looking ahead, the Salobo mine will play a key role in enhancing Silver Wheaton's gold production as the company plans to increase the share of gold in its production from 40% last year to 50% in 2019. It expects its gold production to increase from 230 Koz in 2014 to 325 Koz Au in 2019. As a result, Silver Wheaton also stands to benefit from an expected decline in gold supply going forward.
This is because not enough gold discoveries have taken place in the last 20 years. Post 1995, which was the peak year for gold discoveries, miners haven't found enough deposits to replenish their reserves. This is shown in the following chart:
Source: Goldcorp
As we can see above, gold production has declined post 1995 as discoveries have dropped. As such, after hitting peak production this year, gold supplies will also start waning. This will be a tailwind for Silver Wheaton since the company is well-placed to benefit from lower supply in the end market since it has struck agreements to increase production.
The valuation is still favorable
Apart from the above reasons, another factor why investors can still stay invested in Silver Wheaton is because the company's valuation is still favorable. Though the stock might seem expensive at 34.6 times last year's earnings, a forward P/E of 23 indicates that its bottom line performance will get better in the coming year.
Additionally, the PEG ratio is also quite low at 0.75, which further indicates that Silver Wheaton is undervalued. So, due to its impressive growth prospects and attractive valuation, Silver Wheaton will deliver better returns to investors in the long run.
Agreed. Utterly and completely driven with silver and gold prices, but these guys are poised to go huge. The royalty/streaming concept is relatively new and we're in on the ground floor of that ideal. This will be discussed by mainstream investors avidly in the not too far future.
They'll get it and beyond... watching closely with avid interest.
You mean where you don't sell for a loss! They need a sustained gold price above $1285 for their partners to stay in business!
I've never been a part of a turning of the trend until now... did I mention the bull mode is on full???
Like most other commodities, silver is a CRB component and the $CRB is bullish.
The invisible inflexion point... the bull is now.
Small uptick in Silver prices and they print money. Look at their quarterly Silver "production".
So what happens when the production doesn't happen at the mines that they lent a bunch of money to? Pain!
same here. Still hold SLW though. hello 14's
Cool ...
Not sure what my next move will be. I should have cash sitting for future opportunity.
No doubt one of the better values - Newmont is still a very strong company also.
I had a chance to set up and start up one of their mining operations up in Nevada back in the late 80's early 90's. One of their 'three and out mines' we used to call them and the one only the locals called 'Ruby Ridge' due to the shallow Ruby silver ore that was there. I'm not surprised they became one of the giants in the industry. Balls to the walls company, great crew with lots of knowledge. I have a nice heavy ore sample of the ruby silver from the mine still.
Yes ... on the gold front GG will have been the play.
I see that as a smart play but they can likely monetize their positions once that is resolved.
We'll have consolidation on the way but now my 1st SLW target is the gap at $17 if this is $silver break out. And if we hit that target on this run, SLW $19.50 is likely.
http://stockcharts.com/h-sc/ui?s=SLW&p=D&b=5&g=0&id=p44027708026
SLV has broken out of the cloud and $silver has too but I'd like to see one more up day tomorrow before I'd call the 'breakout' in $silver.
Strong days back to back. About time. Sold CDE. Will be interesting to see if 2's are gone for good. Best trading silver stock. I like SLW and USLV too.
They may need to conserve cash until taxes are resolved.
Silver Wheaton got the green light from the Toronto Stock Exchange to repurchase 20.2 million shares or 5% of the available shares over the next 12 months.
If the company's stock were to remain around this level or even lower, the silver streaming company will turn a "profit" from selling its own shares and then buying it back at a discount: Back in March, the company offered its stock at an average of $20.55, while the current price is at roughly $12.
So for the 20.2 million shares it plans to buy back, it will save over $170 million compared to the offering price SLW received back in March.
$11.30 ... nice. Another one good to grab in the 12's is GG.
With their business model and even with Friday's pop with silver, bargain, bargain, bargain. Never, ever thought I'd see these kind of levels again. Did load the boat at $11.30.......A gift !!
I like SLW all day long in the 11's
Followers
|
106
|
Posters
|
|
Posts (Today)
|
0
|
Posts (Total)
|
1734
|
Created
|
09/01/05
|
Type
|
Free
|
Moderators |
Volume | |
Day Range: | |
Bid Price | |
Ask Price | |
Last Trade Time: |