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XMFSinchiruna (26.53)

Eyeing Par for Silver's Brightest Star



May 17, 2010 – Comments (6) | RELATED TICKERS: SLW

I'm on the record, Fools. SLW will hit $100 per share during this decade, adjusting for any splits that might occur, and of course barring the unforeseen event of a buyout.

"With the world's credit markets still highly uncertain and tenuous, I believe that Silver Wheaton's capacity to provide miners with up-front development capital in return for silver streams will remain in high demand. Punctuating that broader expectation, Taseko Mines (AMEX: TGB) reported last week that it sold 22% of future gold production from the Prosperity mine to Franco-Nevada for $350 million. Unlike typical royalty arrangements, this deal notably mimics the Silver Wheaton business model."

"In conclusion, I believe Silver Wheaton's expanding cash flow, combined with sustained demand for mine development capital, will yield further acquisitive growth and greater shareholder value. Based upon current assets and silver prices, and despite the incredible share advance noted above, I still consider the shares fundamentally undervalued. Coupled with my long-held silver target price of $50 per ounce, I expect that sustained acquisition activity and continued organic growth will propel Silver Wheaton shares into triple-digit territory (adjusting for any splits, of course) by the time this precious-metals bull market reaches its zenith."




6 Comments – Post Your Own

#1) On May 17, 2010 at 5:25 PM, Predaking (27.84) wrote:

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#2) On May 17, 2010 at 5:28 PM, outoffocus (23.78) wrote:

Hey Sinchy,

I'm going to finally pull the trigger and buy some physical silver.   I talked to my boyfriend about it and even he thinks its a good idea. Of course this could not happen without all the valuable information from you and Binve.  I'm not going to dump my life savings into it but I'll buy enough that the crap really hits that fan I'll at least be somewhat protected.  You know, just in case I'm not able to sell my SLW holdings. =) So thanks again.

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#3) On May 17, 2010 at 6:08 PM, kstarich (28.81) wrote:


I would be interested to read your thoughts on exk and tgb going forward.



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#4) On May 17, 2010 at 6:24 PM, XMFSinchiruna (26.53) wrote:


long and strong :)

My thoughts on TGB are well-documented. EXK is one of my larger silver junior holdings, and appears to be in the strongest position among its several peers to proceed with an acquisitive growth spurt to begin the consolidation of mexican silver-producing mining operations held by micro-cap and small-cap juniors. 

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#5) On May 17, 2010 at 6:52 PM, XMFSinchiruna (26.53) wrote:


So glad to hear it! Nice move. :)

Anything beneath $20 still represents an historic buying opportunity provided courtesy of JPM and the other bullion banks operating their unbacked silver-shorting ponzi scheme. 

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#6) On May 20, 2010 at 8:33 PM, fewl10 (< 20) wrote:

I find it kind of hard to believe that a silver dealer is going to be the best investment over the next decade.  Sorry....

How about green energy?  That's been pretty beaten up.

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