ScotiaMcLeod Silver Report from Oct 16, 1997
Of course they review the supply, demand, inventories etc and come to the
obvious conclusion that silver is setting up to soar big time.
They discuss each of the major silver stocks and have an interesting table
showing how much each SHARE of each company analyzed should rise
with each ONE dollar rise in the price of silver.
Company........................$Share................Rise/$1 Ag
Pan American......................7.40.................$5.82
First Silver Reserve........... .78...................$0.28
Avino Silver Mines..............1.90.................$1.41
Silver Standard................... 3.81.................$3.87
Hecla.......................................5.75.................$1.95
Coeur.....................................14.25.................$3.01
Sunshine................................. .81 ..................$0.30
The others, Cons Nevada, Barrick, Sunshine, Echo Bay etc
were estimated at less than $1.00 gain per $1.00 rise in silver.
Off hand it would seem Pan American is the way to go, however,
if we invest $1000 in each stock, here is what would happen for
each $1.00 rise in the price of silver:
Company..................Shares/$1000......Rise/$1Ag........Profit/$1 Ag
Pan American..................135.........x...........$5.82...................$785
First Silver Reserve.....1300.........x...........$0.28...................$364
Avino Silver Mines..........525.........x...........$1.41...................$740
Silver Standard.................265........x...........$3.87.................$1025
Hecla....................................200........x...........$1.95...................$390
Coeur....................................100........x...........$3.01...................$300
Sunshine.............................1235.......x..........$0.30................... $370
(all figures $US, conversion used = .705)
Sunshine's current share price is $0.81, it will rise $0.30 for each
$1.00 rise in silver. For a thousand dollars you can buy about
1235 shares of sunshine. For each dollar rise in silver you will
profit $370.
When silver ran from 4.30 to 5.30, Sunshine went from about
$0.70 to about $1.10. Many other silver stocks out performed
Sunshine.
If (when) silver goes to $8.00, Sunshine should be about $2.00.
I don't mean to dump on Sunshine ... |
