January 06, 2010
– Comments (7)
Time to vote for your favorite among the 5 finalists in the Best Stock for 2010 contest.
Thank you for taking part!
And here's my article nominating Silver Wheaton, in case you missed it.
I vote for CROX
..... :) (jk). I like SLW quite a lot (and own quite a lot) myself. I second that nomination :)
Of those 5 I have to go with SLW as well. I don't think retail or consumer goods will do well in 2010 nor having them delivered to customers which pretty much left only SLW.
If I had to make another pick, I'd probably stick with AAPL.
I'm gonna go with SLW because its the only one I put real money into.
I did vote for SLW. However, I do think that SLW at today's silver prices reflect fully valued company with some upside to silver prices already baked in. So its not a value stock at this point. My vote for SLW is due to my expectation that Silver prices would eventually rise due to inflation expectation, dollar depreciation and other macro economic factors. The downside risk is that fed acts tough on interest rates and raises them drastically to nip inflation in the bud. I doubt that will happen but thats a possibility..
Even with that, I like their cost structure and feel they have a competitive advantage for long term. So I go with SLW.
That is incorrect, fellow Fool.
Fair valuation for SLW shares is about twice present share price at present silver prices.
For a precious metal commodity, I use their proven asset and probable assets (discount this by a certain %) and come at the current value depending upon the price of the metal/commodity. I do not factor much of growth besides this. Is this how you do it too? I would be intrested, if you want to share, in looking at the way you achieved twice there current value.