well, gents, it's like this...$19 is NOT as low as SWC is going. Just how many catalytic converters and palladium coins, and palladium electrical contacts do you think this old world is going to need in about 60 days when mfg of cars, and refining of gasoline comes to a dead halt due to power failures and crack refining capacity shut down due to embedded chips?
If there was any high percentage play to the upside, it would have happened by now, because of the need to stockpile this WM choice du jour! Hell, even Hershey's tried to do an 8 days increased inventory supply due to their Y2K fix before failure plan that has risen and bitten them in the chocolate asp acc'd to DOW JONES article published this week.
50% off SWC's recent high is nothing...better short this puppy, 'cause she's going down with the Titanic orchestra! Me? I'm looking to add here and cover at about the 85% haircut level of the PRIOR to the previous split price as the place to step aside and bank it.
If you are wanting to gamble, THAT is the only place to gamble from the long side unless you are trading for pennies through some soon to be tits up online broker who will be kaput due to power outtages and phone phailures.
Maybe you don't watch such things, but TOKYO issued a better lay in supplies for the year end Calendar Date Change on the 29. And they are probably the world's NUMBER ONE consumer of the white metals for adornment. PHYSICAL GOLD is the only place to be because of its ease of convertibility and global acceptance as money!!!
Furthermore, you guys crack me up: when SWC's lousy priced forward contracts expired, and they finally started to hedge, the numbers you all were throwing around sounded HUGE, percentage-wise of current and future production.
Now that the price is down, you all don't think their hedge book was really very big afterall, percentage wise. MAKE UP YOUR MIND, BOYS. IT'S THE SAME DAMN HEDGE BOOK as you were glorifying not 12 months ago!!!
BESIDES, you all don't think they got their expansion money from
selling their mother's good looks do you? Or are you of the mistaken opinion that Gold Companies are the only ones playing the buy one write two derivatives game that has the gold boys getting their balls busted???
A bank financing is a bank financing is a bank financing. They (ALL PMs' mines) have BEEN REQUIRED AS BORROWERS to play the game of Scholes Black Box hedging, to manage the bank's risk in order to get the expansion AND operational financing in the first place. And most of it is what they call, "off the books" transactions, so DON'T look for it under L for Liabilities. Banks don't give a whit whether the CEO's/CFO's speak Ruskie, Swahili, or English!
Better get into something that will make it across the CDC, boys, and you heard it hear first. And if you're lucky...
O/49r |
