Monday, June 30, 2014 9:15:25 AM
Silver Bull: Another Cheap Silver Stock That Is Priced Like An Option With Major Upside Potential
Jun. 24, 2014 5:37 PM ET
Summary
• Silver Bull (NYSE:SVBL; TSX:SVB) shares have drifted far below fair value and could be poised to rebound sharply with silver prices.
• Silver prices have shown signs of having bottomed out and could be poised to finally rise, as industrial demand increases due to global growth.
• The "smart money", which includes hedge funds, mining giant Coeur d'Alene, insiders and others, are invested in this company.
• Silver Bull Resources is debt-free and is developing one of the largest remaining silver deposits in North America - the "Sierra Mojado".
• The value of this deposit could be worth well over $2 billion, with roughly 164 million ounces of silver and 2.2 billion pounds of zinc indicated.
As a contrarian investor, I like to find out of favor stocks that are deeply undervalued, and offer significant upside potential. Buying stocks when other investors are disinterested could have led you into buying Bank of America (BAC) or Genworth (GNW) shares for just about $5. Now those stocks are worth more than triple that amount. I have been looking for bargains in the silver mining sector because I believe silver has bottomed out and will inevitably trend higher, as industrial demand rises along with the global economy. This research for silver stock bargains led me into Revett Mining (RVM) which I wrote about when it was recently trading for just around 80 cents per share. It now trades for about $1.12 per share which is a gain of about 40%, in just a short time, and there is plenty of future upside potential left. Fortunately, there is another very undervalued silver stock with similar characteristics and significant upside potential, so let's take a closer look:
Silver Bull Resources, Inc. (SVBL) is a little-known play on silver and zinc, but it has one of the largest silver projects currently under development. This stock has drifted down due to the low price of silver, but there are plenty of reasons why it could deliver big gains, especially for investors who buy the stock at the currently depressed levels. Silver Bull is developing one of North America's largest silver projects, the "Sierra Mojada". This project has very favorable economics and the infrastructure such as roads, water, labor, and rail are in place which lowers expenses and de-risks the project. This company received water permits earlier this year which further de-risks the project. This project has a cash cost of $6.58 per ounce of silver and an annual production estimate of 7 million ounces of silver for the first 5 years. That means this project is highly profitable even with silver trading at depressed prices.
Continued below:
http://seekingalpha.com/article/2284713-silver-bull-another-cheap-silver-stock-that-is-priced-like-an-option-with-major-upside-potential?
Jun. 24, 2014 5:37 PM ET
Summary
• Silver Bull (NYSE:SVBL; TSX:SVB) shares have drifted far below fair value and could be poised to rebound sharply with silver prices.
• Silver prices have shown signs of having bottomed out and could be poised to finally rise, as industrial demand increases due to global growth.
• The "smart money", which includes hedge funds, mining giant Coeur d'Alene, insiders and others, are invested in this company.
• Silver Bull Resources is debt-free and is developing one of the largest remaining silver deposits in North America - the "Sierra Mojado".
• The value of this deposit could be worth well over $2 billion, with roughly 164 million ounces of silver and 2.2 billion pounds of zinc indicated.
As a contrarian investor, I like to find out of favor stocks that are deeply undervalued, and offer significant upside potential. Buying stocks when other investors are disinterested could have led you into buying Bank of America (BAC) or Genworth (GNW) shares for just about $5. Now those stocks are worth more than triple that amount. I have been looking for bargains in the silver mining sector because I believe silver has bottomed out and will inevitably trend higher, as industrial demand rises along with the global economy. This research for silver stock bargains led me into Revett Mining (RVM) which I wrote about when it was recently trading for just around 80 cents per share. It now trades for about $1.12 per share which is a gain of about 40%, in just a short time, and there is plenty of future upside potential left. Fortunately, there is another very undervalued silver stock with similar characteristics and significant upside potential, so let's take a closer look:
Silver Bull Resources, Inc. (SVBL) is a little-known play on silver and zinc, but it has one of the largest silver projects currently under development. This stock has drifted down due to the low price of silver, but there are plenty of reasons why it could deliver big gains, especially for investors who buy the stock at the currently depressed levels. Silver Bull is developing one of North America's largest silver projects, the "Sierra Mojada". This project has very favorable economics and the infrastructure such as roads, water, labor, and rail are in place which lowers expenses and de-risks the project. This company received water permits earlier this year which further de-risks the project. This project has a cash cost of $6.58 per ounce of silver and an annual production estimate of 7 million ounces of silver for the first 5 years. That means this project is highly profitable even with silver trading at depressed prices.
Continued below:
http://seekingalpha.com/article/2284713-silver-bull-another-cheap-silver-stock-that-is-priced-like-an-option-with-major-upside-potential?
Dan 
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