Booms, Busts, and Recoveries Message Board

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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: TobagoJack who wrote (43372)	12/16/2003 12:31:35 PM
From: TrueScouse	Read Replies (1) of 74559

Jay: Just to add to Dave's excellent response to your enquiry about silver stocks, I also own several of the one's he mentioned. But the one I'm holding for the longer term is Pan American Silver (PAA), although I hold the warrants on it (PAA.WT on Toronto) rather than the stock. They give extra leverage and they're well in the money, exercisable at $12.00 CDN any time up till Feb 2008. They currently trade at about $8.00. The reason I really like the warrants is that PAA's production from it's new Alamo Dorado mine will start to kick in 12 to 18 months from now. This is a really low cost operation (Corner Bay's former discovery, sold to PAA a couple of years ago), especially in the early years (only about $1.50 per ounce of silver if I remember correctly) -- so my bet is that: - PAA is going to improve it's bottom line dramatically over the next 2 years and the move in its stock price should reflect this - This could coincide with a major increase in the price of silver - The options have over 4 years left - The leverage with the options will increase any % gain significantly. [Of course, any % loss would also be augmented!] :^) Hmmm... I think I've just convinced myself to buy some more! Anyway, they're not very liquid, which is the case with many silver stocks and especially the warrants, but maybe you should take a look at them. Best regards, Howy PS: On the speculative side, I also like SVL a lot, as mentioned by Dave.

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