Silver Wheaton Corp. (USA) (NYSE:SLW)

CAPS Rating: 4 out of 5

A mining company which operates its revenue from the sale of silver. The Corporation is actively pursuing further growth opportunities, primarily by way of entering into long-term silver purchase contract.


Player Avatar Googlespooch (< 20) Submitted: 4/23/2013 6:09:17 AM : Outperform Start Price: $22.07 SLW Score: -31.93

With this big precious metals short position that has been fulfilled by the mega banks, I feel that we are bottoming out on the commodity plays and headed for more positive futures. In saying that, I believe that Silver Wheaton will do well. Silver Wheaton works based on a really interesting royalty system in which they provide much of the upfront cost of development and then are able to buy silver at contract prices that allow for serious profit on each individual transaction in order to recoup the initial costs. In doing so, Silver Wheaton presents a nearly pure play on silver. With silver already so beat down, it should seem like it will be hitting a floor soon (if it has not already) and come back over the coming time periods. Besides, Silver Wheaton pays a decent dividend so you can be rewarded with some income while you wait for the recovery.

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