Wheaton Precious Metals Corp (WPM)

[Tommy]

$SLW - Silver Wheaton: A Bargain In Precious Metals

Dec 21 2013, 10:39 | about: SLW, includes: FNV, RGLD, SAND

http://seekingalpha.com/article/1910791-silver-wheaton-a-bargain-in-precious-metals?source=email_rt_article_readmore

Disclosure: I am long SLW. (More...)

... "Silver Wheaton Corp. (SLW) is the world's largest precious metal streaming company. The company was founded in 2004 and is headquartered in Vancouver, Canada. The firm does not own or operate mines, instead entering into contracts with production companies. The metal streaming business did not even exist until Silver Wheaton was created in 2004. I feel that the company is one of several large cap firms within the precious metals and minerals sector that offer a great opportunity for share appreciation in 2014. My positive investment thesis for Silver Wheaton Corp. is based upon nine key criteria, which include:

Key Selection Criteria

1. A large market capitalization.

2. A leadership position within a growing industry.

3. A dominant, or large, market share within its product mix.

4. A strong position internationally.

5. A strong balance sheet and high credit rating.

6. A high free cash flow number.

7. A low historical relative valuation as measured by price/sales and/or price/earnings ratios.

8. A strong dividend growth rate.

9. A catalyst of new revenue opportunities.

Capitalization

Silver Wheaton is a large-cap precious metals and minerals firm with a current capitalization of $7.4 billion.

Leadership

Silver Wheaton has maintained a leadership position in the materials industry, notably in the silver business. As one of the few large cap non-producing mining firms, Silver Wheaton has made itself difficult to compete against. Industry peers include Royal Gold (RGLD), Franco-Nevada (FNV) and Sandstorm (SAND), which are all primarily gold companies. Silver Wheaton's stream mix is roughly 80% silver and 20% gold contracts." ...