Vargas:
I agree with you that with continued progress, we should see this
stock not only at higher levels, but also hopefully advance from
the BB. The key now is that Silver appears to have risen to a new
level, and the short supply that has built up over 7 or 8 years
is not about to be replenished overnight. So, IMO, I could see
silver holding here or moving up for at least 12-24 months and
possibly a lot longer.
As silver prices have risen to the current levels, there are
a few companies, like Clifton, that have the potential to show
excellent earnings, as their mining costs are low. We are at
the beginning of a period in which juniors are scrambling to go
into at least limited production, so as to provide cash flow. Those
that can produce at reasonable cost, such as Clifton, are going
to attract investors simply on an a cash-flow/earnings basis.
The idea of valuing a company based on an estimated resource isn't
going to go away, but production and cash flow gives the shareholder
a bigger and less risky bang for one's buck.
I want to call your attention to another issue, Golden Panther
which also trades on the Nasdaq bb, symbol GPRX. It is a play on
silver as well, and there is a thread on it in this forum.
Regards
Dan |
