Tuesday, March 13, 2007

Silvercorp Metals Inc (SVM.TO)

We will be adding this high performing stock to our analysis suite in the next issue of The Silver Analyst. If it stands up to longer term analysis, I will also add it to the SASC - our silver stocks index.

Mind you, the way silver stocks seems to want to break out, this stock may not be content to remain at $18 by the time the next issue comes out in April.


4 Comments:

Blogger Harlan said...

I am of the mind we are indeed entering uncharted territory, with some similarities to the crash of 1929. However, a plethora of new financial instruments in the market create a unique environment. I no longer have confidence in the charts to guide investment decisions as they do not reflect the new relevance we have entered. The best one can do is to evaluate personal reality in light of geopolitical, environmental conditions. The economy is in a "fractal" reality. Upsets are not just burps, they are a manifestation of the pillars pulverizing bit by bit until a chunk drops. Much akin to a cancer causing symptomatic discomforts, minor initially and then into recession and reappearance, until ultimate death.

11:29 AM  
Blogger GA said...

Silvercorp is such an excellent company it is a wonder it is not already a part of the SASC index. The company is working hard to overcome it's relative 'newness' to the silver investment community.

I suppose SVM suffers from the fact that it has brought a multi-million oz deposit into production faster than anyone before. This company has been profitable from it's first Q of full production: Q1 .05/sh, Q2 .11/sh, Q3 .19/sh. They will be bringing online a new 600t/d mill by the end of this Q (4th) which will expand capacity 2.5x.

Expectations are for a massive increase in reserves and resources, in the neighborhood of 50-100% in the next six months. Their cash cost per oz of silver net of all by product credits is a NEGATIVE $6.50. Their margins are over 50% [closer to 80%, but why quibble]

They have less than 50 million shares oustanding [over 40%+ held by funds and institutions, and another 20%+ held by management] and $67 million in the bank.

They plan to start paying a dividends later in the 2nd half of 2007. They also hope to list on the HK exchange this year.

Silvercorp is a silver producing, profit producing powerhouse on the road to exponential growth.

Of course I may be biased; I already have a 13x+ in the shares I own.

3:16 PM  
Blogger ga said...

Silvercorp announced another reason to be excited about its future: Molybdenum on its Ying property in Hunan.
SVM NR on their home page

Also, SVM President Cathy Fong made a wonderful presentation at the Amex 4th Annual Precious and Base Metals Conference. A must listen to if you really want to learn about SVM...you cant help but get excited about SVM.
Cathy's Audio Presentation

10:26 PM  
Blogger ga said...

8 Sept 2007

I'll assume no one is reading this but here goes anyways.

Silvercorp is going gangbusters. It is still unloved by the market place even after earning $.52/share in its first full year of production [ending 3/31/07] and then in the first Q of the current year earning $.33/share[ending 6/30/07].

The company itself guestimates current full year earning of $1.27/share. At current share prices that values SVM at a ridiculously (imo) low 15x forward earnings. After reaching new all time highs this past summer, SVM was sold off with everything else in the August meltdown and is already coming back strongly.

Shareholders will probably approve a 3:1 stock split at the AGM Sept 28th. It is anticipated that a dividend or Hong Kong listing or updated resource calcualtion may be announced as well.

Knowledgeable investors might expect, based on the amount of drilling this past year, to see SVM add 40-50% to its Silver and Silver equivalents.

The company put out an excellent presentation on July 17th. See the link below.

SVM Presentation 7/17/07

If anyone is reading this, there is a lively discussion board of long time holders at Stockhouse.com.

11:44 AM  

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