i bought some may 15's.. figured it was worth a shot.
SVM - Silvercorp Metals Inc - Page 26
$12.0 looks to be a great entry point. I may take a small position ,I am not sure yet. People have made so much money on this,that ,if earnings are good,they may sell into it taking profits. What to do,what to do
Buy when there is blood in the streets, SVM business in no trouble, the selling is due to very negative sentiment towards silver and those who are leveraged to it.
The reality is that even at todays price SVM is getting twice as much for their silver as they were just 6 months ago when they reported blowout earnings that surpassed earnings consensus from the analysts , who stubbornly refuse to use higher silver input prices in their estimates.
I actually made the dive into options here and bought 50 contracts for JUNE 14$ on svm. MAY 11 the earnings will open some eyes. The future estimates from the company will include revenues from the BYP gold mine commissioned this Q, with very robust margins there.
SVM is set to double production as compared to 2010 , within 18 months. Revenues i estimate will triple or more. Earnings will be at least double , and that is with a very conservative 35$ silver target for the year. I believe silver goes thru 50$ here in the next few months.
Even if the big manipulators can drive silver back down to 35$ SVM is still a cash cow. The fact that the market is missing this, is due to irrational selling , not due to any fundamental problems with the company or even the price of silver. Fact is if silver drops to 15$, 90% of the companies out there producing silver primarily, would shut the doors, and SVM will still be making money, the base metals credits more than pay all mining costs. SVM sitting on a mountain of cash.
In jan i heard the same song and dance and watched SVM drop below 10$ where i loaded up. Silver had just dropped to 27$, but the Q3 earnings came out for SVM and they rocketed up 50% from there , where i took profits and got the divvy. I think its deja vu, with even more negativity this time around from the media.
Man I'd really like to get in on this one, but I had horizontal support at approximately $12. It appears to have broken that, does anyone see any other support levels until the SMA200? I also expect them to beat earnings, but I don't want to buy in too early and get stuck holding this one for awhile. Looking to do the swing trade at the bottom, hoping I can catch it.
I see support in the 11.54-11.57 area, look back in 2010 at Nov 7th and Nov 9th, the former closed at 11.57 on 6 MM shares and the latter closed at 11.54 on 9 MM shares. The volume off today's 11.58 low (yes just a penny above!) was not convincing, but the price action looks confident, as if some smart money was sneaking in on SVM to set up camp. I just got in HL and EXK today and might add this one to the fold very soon. If any of you use price and volume benchmarks, all of these numbers work really well together, we're not pushing the volume needed to make it down through the mid 11.50s with ease, so chances are pretty good it won't dip lower than that without some more weakness in silver, so we can see if 40 holds in SI and if it does SVM looks very appealing here.