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Politics : Welcome to Slider's Dugout
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To: SliderOnTheBlack who wrote (13772)12/2/2008 11:39:29 PM
From: Webster Groves  Read Replies (1) of 50070
 
SLW

The business model of SLW seems structured more like a hedge fund and less like a miner. They take options positions, putting money up front, to get future access to silver. In a bull market for PMs they make money. In a recession or worse with silver falling, they lose quickly. They own nothing but contracts. The counter party risk appears to be ignored in these contracts, however, especially considering that SLW deals with miners who need cash now. OTOH, they are free from labor worries, mine disasters, and governmental regulations and controls (as long as their counter party holds up his end). So treat SLW like a miner if you will, but it looks more like a commodity broker at best to me.

wg

PS - Of course I'll play; whatever the market wants. But for a real Ag miner, look at PAAS - the Rodney Dangerfield of the industry.
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