Timing is the most important thing a trader can learn, and that has to do with experience, and (for me) studying technicals. On the daily chart we can see SVM in oversold territory under the 20, the macd is still bearish but looks like it may be turning. MACD histogram is also on the coming up from in inverted triangle, so things look good, but I do not know the history of this stock, any thoughts?
SVM - Silvercorp Metals Inc (TSX) - Page 21
The thing that is confusing for even me, and maybe StockJock-E you can answer this , but sometimes I am not sure which chart to look at the daily the monthly or the minute to minute. For example, this stock on the minute charts shows oversold, but on the hourly it is overbought, then on the daily it is oversold again, so sometimes I am not sure which one to use.
That's exactly my point. Something stinks in the pantry, there's a dead, rotting animal hidden in there somewhere.
BUYBACK is on
Silvercorp buys back 776,458 shares at $8.18 each
2011-08-11 11:18 PT - News Release
Mr. Rui Feng reports
SILVERCORP METALS INC.: UPDATE ON NORMAL COURSE ISSUER BID
Silvercorp Metals Inc., to date, has acquired, pursuant to its normal course issuer bid, 558,200 of its common shares through the facilities of the Toronto Stock Exchange, and it has acquired 218,258 of its common shares through the facilities of the New York Stock Exchange for a total of 776,458 common shares, the average price paid per share is $8.185. All shares will be cancelled.
Call it a hunch; I don't think there's any weird shit going on in the background causing this. I think people just got scared off, and it has yet to bounce back. I can see tomorrow being a strong day for SVM, and it coming back to the $11-12 range by January (assuming the market co-operates)
Last I checked IIRC they had over 230 mill in the till, no long term debt, and were forecasting for 6 million ounces or so in 2012. It'll come back.
If it goes to 7$ SVM will have bought up about 90 million $ worth of the shorts as they have the buyback on. And what a deal for SVM as they did a financing last December to raise 116 million $ at 12.70 US.
SILVERCORP METALS INC. CLOSES US$116.8 MILLION FINANCING
Silvercorp Metals Inc. has closed its bought-deal financing, previously announced in Stockwatch on Dec. 6, 2010, through a syndicate of underwriters led by Canadian Imperial Bank of Commerce and BMO Capital Markets, and including Raymond James Ltd., UBS Securities Canada Inc. and Salman Partners Inc. Pursuant to the offering, the corporation issued 9.2 million common shares at a price of $12.70 (U.S.) per common share, for total gross proceeds of $116.84-million (U.S.)
Silver going to 50$ this fall, and that should propel SVM to new highs , considering the huge growth they have planned. If ya want to lose some money , buy some puts.
After a nice pop up to start the day SVM but then saw the sellers come out of the woodwork. Silver at 42$ and gold hit another NEW RECORD high overnite, hardly bad news for SVM.
I take it the hedge funds still shorting/ selling SVM for whatever reason. I finally caved and bought another 3K today, i think the selling will be done here today, and SVM will raise the bar on the buyback program to 8.50 level. Good luck longs.
Unbelievable GMP and Dundee wait until the buying subsides and dump it hard at the low of the day, seems to be some agenda in hammering SVM, dont understand this with silver surging bigtime, and gold just off the new record high. Appears i could have waited to add to my position here. Things that make you think ... wtf!
SVM targetting more growth in CHINA
Silvercorp's Henan Found buys 90% of Chinese mine, mill
2011-08-22 05:40 PT - News Release
Mr. Rui Feng reports
SILVERCORP ACQUIRES HIGH GRADE XBG SILVER-GOLD-LEAD-ZINC PROPERTY IN LUOYANG, HENAN PROVINCE, CHINA
Silvercorp Metals Inc.'s 77.5-per-cent-owned subsidiary, Henan Found Mining Co., has signed a share purchase agreement to acquire a 90-per-cent equity interest in Zhongxing Mining Co. Ltd. and Chuanxin Mining Co. Ltd., two local private mining companies, with common owners, in Luoyang City, Henan province.
Henan Found's total cash payment for the acquisition of both companies is approximately $10.4-million (U.S.), including $4.3-million (U.S.) for the equity interest and $6.1-million (U.S.) cash payment for outstanding debt. Henan Found has made 80 per cent of the required total payment and has taken over control.
Zhongxing's main assets include the high-grade XBG silver-gold-lead-zinc mine with a mining permit covering 26.36 square kilometres expiring November, 2022, and the adjacent NTM gold exploration permit covering 2.54 square kilometres. Chuanxin's main assets include a 350-tonne-per-day flotation mill and an associated tailings management facility built in 2009 within the mining permit area, and an environmental permit to construct a 1,000-tonne-per-day flotation mill.
The XBG mine is located about 120 kilometres southwest of the company's Ying mine and is about a three-hour drive from Luoyang City and the Ying mine. Due to the close proximity, the XBG project will be managed by the Ying mine's management team.
Geologically, the XBG project area is situated in the east extension of the Qinling Mountain belt near the margin of the Northern China craton in the same regional mineralization belt as the Ying mining camp and is one of the largest silver-gold and base metal belts and largest silver-producing region in China. The XBG project area is underlain by Middle Proterozoic andesite flows interbedded with minor thinly bedded rhyolite, which have been intruded by Mesozoic granitic stocks. Mesothermal-style silver-gold-lead-zinc mineralization is hosted by north-northeast-, northeast-east- and northwest-trending ductile shear structures which occur along a southeast margin of large granitic plutons that extends over 40 kilometres long that are featured by extensive overlapping silver-lead-zinc-gold soil anomalies.
The XBG mine area was subjected to artisanal mining for gold and silver since the late 1980s. Exploration activities were limited to regional scale surface mapping, 1:50,000 scale stream sediment geochemical survey and limited surface trenching. No drilling was ever performed on the property, therefore, no resource was defined.
Zhongxing has carried out exploration/mine development and small-scale mining since the mining permit was issued in November, 2010, by small-scale tunnel mining. By the end of July, 2011, a total of 4,500 metres of mine tunnels and several shallow shafts were developed in the mine area. Based on Zhongxing's records, over 20,000 tonnes of silver-lead-zinc ore were mined of which about 12,000 tonnes of ore were milled by the 350-tonne-per-day flotation mill. Metal recoveries from the test milling were reported to be over 90 per cent for silver and lead and 80 per cent for gold and zinc.
So far, 12 mineralized Ag-Au-Pb-Zn veins/structures and three Au veins/structures were identified by surface mapping, trenching and tunnelling. The silver-gold-lead-zinc mineralization is hosted in quartz-sericite-chlorite-carbonate-fluorite veins cross-cutting Proterozoic age andesite flows. The vein system trends north-northeast, northeast-east and northwest with a steep (62 to 86 degrees) dip and extends a few hundred metres to over 2,000 metres along strike and up to 210 metres along the dipping direction with true width ranging from 0.2 to 3.8 metres. The veins contained 14 to 856 grams per tonne Ag, 0.10 to 63.18 grams per tonne Au, 0.15 to 36.17 per cent Pb and 0.10 to 15.33 per cent Zn.
Silvercorp's geologists visited the property three times in June and July, 2011. During the site visits, over 35 channel and bulk samples were collected from five actively mined veins and highlights of assay results are listed in the table.
SAMPLE RESULTS True Vein thickness Ag Au Pb Zn No. (m) (g/t) (g/t) (%) (%) X1 1.20 251 1.20 11.54 0.53 2.30 128 9.47 2.56 0.74 0.30 856 63.18 12.78 0.41 Bulk sample 37 10.44 0.61 0.10 X2 3.80 87 0.44 1.05 0.70 X8 Stope's 165 0.55 19.32 0.53 bulk sample 0.80 84 0.88 5.99 2.66 0.83 195 0.42 10.44 8.03 Bulk sample 352 0.28 65.93 4.76 (massive galena) X9 0.40 84 1.25 2.82 1.90 X12 0.80 151 1.31 0.77 0.81
Once the transaction is completed, a comprehensive exploration program that includes surface and underground mapping and sampling, and surface and underground diamond drilling will be carried out to explore the existing veins and discover additional veins. The exploration program is expected to be self-financed by cash flow generated from continuing mining activities from the existing tunnels and processed from the existing 350-tonne-per-day flotation mill.
Silvercorp's intention is to consolidate the majority of the mineralization belt of the XBG mine area through Henan Found. It, as an effective explorer and developer, has a good brand name and has become the largest non-state-controlled company and one of the top tax payers in Luoyang City, helping it gain the full support of county, city and provincial governments.
Henan Found is currently in the final process of acquiring another silver-gold-lead-zinc mine covered by a 14-square-kilometre mining permit and equipped with a new 500-tonne-per-day flotation/CIL mill. This mine is located about six kilometres to the northwest of the XBG mine. Henan Found is also negotiating acquisition opportunities with several other silver-gold-lead-zinc property owners in the XBG project area.
This acquisition marks another significant step for Silvercorp's growth in China, allowing Silvercorp to establish a fourth production base in a prominent polymetallic belt with a mixed production of precious and base metals. The acquisition fits Silvercorp's strategy of acquiring silver projects that can generate healthy cash flows before the project is fully explored and developed, so that further resource expansion and production growth can be financed from the project's own cash flows.
This acquisition is subject to approvals by necessary regulatory agents, including Chinese military clearance, as is customarily required.
Myles Gao, PGeo, is the qualified person on the project under National Instrument 43-10
Silver up 3.60% for the day so naturally SVM goes down 2.12% Work of short sellers? I see alot of the other miners are up 2% to 3%
I just dont understand how the market values these miners. On August 2 with silver around $41 SVM was trading around $10 just a little over 3 weeks ago.
Today silver is around $41 and SVM closes at $7.86. Down %50 from March highs. Heres to hoping Bernake gives the U.S. the QE3 fix their jonesing for tommorow.
Edited by Beaumont - 8/26/11 at 1:39am
All I can do is ignore it and take a quick glance at the price every week or two. Serves me right for listening to the crap spewed on this forum about how 'great' this company is.
It appears the shorties in the US are hammering SVM for whatever reason, some reports saying over 20 million shares in the US markets shortsold ( or naked shorted) in the past 2 months. I suspect has nothing to do with the company's profitability, value in ground , cash in the bank or growth prospects, as all of those are terrific.
TRE ( Sino Forest) is another China based company that trades on the TSX, and they have been suspended, allegations of overstating revenues and timber holdings, and this has put a black eye on all those companies doing business there in China, regardless of whether they are good companies or not.
The US markets hateon is akin to selling all the north American gas companies after Enron, or shorting all the financial plays after the Madoff Scam.
Silvercorp buys 1.62 million shares under NCIB so far
2011-08-26 05:30 PT - News Release
Mr. Rui Feng reports
SILVERCORP METALS INC.: UPDATE ON NORMAL COURSE ISSUER BID
Silvercorp Metals Inc. has acquired a total of 1,624,233 of its common shares at an average price of $8.18 to date, pursuant to its normal course issuer bid announced on June 17, 2011.
The company is purchasing its own shares because it believes that prevailing market conditions have resulted in Silvercorp's shares being undervalued relative to the immediate and long-term value of Silvercorp's portfolio of producing and development properties in China and Canada. The company notes that the short interest position in its common shares has climbed from 3.6 million as of the July 29, 2011, settlement date to 9.6 million as of the Aug. 15, 2011, settlement date, the most recent date for which short interest data are known by the company. Under the existing NCIB the company intends to acquire up to 10 million common shares. All common shares purchased under the NCIB will be cancelled.
According to this site, the US short interest ( shares out on loan )now over 20 million most of that happening in August.
Simply punch SVM into the ticker symbol in the middle and the chart above shows the shares out on loan. You can see that the majority of the short interest has taken place in the last 2 wseek so f August
Not suggesting anyone go against the big boys shorting this play, as we can see , value, earnings, growth and profitablity mean nothing to them.
They will at some point decide to cover, perhaps when silver goes thru 50$ later this fall..... at that time SVM will be a great buy. I have been involved in a few short squeezes in the past and they can be real rocket rides.
SVM, last time i looked , was still the lowest cost primary silver producer on the planet, and versus their peers , they appear to be a bargain. I chose SVM in the contests as i thought with the buyback started and record earnings reported there was upside. There has been a general beatdown in the markets the past few weeks as well, i am sure most have noticed, so very easy in this market environment to force share prices down via shorting and naked shorting.
I still hold SVM and have had shares for most of the past 6 years, i do trade in and out at times.
Good luck longs.
The chart is looking very good right now, and the fundamentals have always been good...
But I've learned that the saying "if you can't beat them, join them" holds true, as witnessed with SVM and my other holdings AVR and SMF. The shorters are winning at the moment so don't fight the trend. As well, Muddy Waters and TRE have really hurt China stocks.
i was watching oleary and lang a few days ago and they were completely against investing in any china based companies strictly because of the sino forest situation. Many other analysts agree and i think thats enough to keep individual investors away...and im positive the funds arent touching it...perhaps with time, this can make a real comeback but until China seems some more buyer confidence, the shorts are going to keep winning