Coeur Mining, Inc. (NYSE:CDE)

Well, to make a long story short; since I am more of a contrarian and valuation style investor that looks for blood in the streets, this one recently popped up on my watch list. Therefore, I as started to build a small position on this one.. Wish me luck.

Large NA silver miner - has reserves and production to fly when silver has its day - which will be soon

Safer with minerals than other categories as long as the policy is to print more money.

Solid mid-tier producer , 3Q earnings were solid , has a couple of great projects in the pipeline .

Will go up with PM's

Due for a nice little rally in late summer-early fall and a return to a more normal price range above 27 by the end of the year.

Estimates and targets may be way too low, because key Kensington mine has been off-line for a full two quarters. It came back on-line a few weeks ago and will help earnings considerably in the second half.

To replace depleting Martha Mine, CDE-Biscuit, as fans fondly call it, has been making quite a few strategic purchases of positions in promising exploration companies. These may prove to be very good investments AS investments as soon as the PM stocks get hot again.

Note that the ratios of the major PM indices - XAU, TSX Gold, and HUI - are at their lowest to the prices of the underlying metals in several decades.

That's Through the Looking Glass territory, and most sector veterans believe a major sentiment shift towards these stocks lies dead ahead.

I think that CDE should be considered a s a gold producer as well as the largest lowest cost silver producer in North America. It is selling only marginally above book value and while Au & Ag may not continue to rise they don't seem likely to fall soon. Industrial demand fro silver in modern electronics has completely replaced business lost in the slow death of photograph development.

I'm giving this an out perform because it seems unlikely they could do any worse.

oversold

With 3 new mines and lowered capex expections, the stock is selling at about a PE of 4.

CDE (Coeur d'Alene Mines Corp) represents an extreme value at the current price level (sub $30.00). With Metal sales expected to be roughly 1B for 2011, this stock is trading at only 2X sales, and roughly 5X net profits. At some point the Market will realize, that CDE is a Cash cow moving forward, and the infrastructure and properties owned by the company are worth nearly double the current stock price. CDE is an easy way to purchase obtainable Silver Reserves for less than $5 an ounce. Price to Book value is just over 1 as well. CDE is cheap.

My thesis is that silver will not remain below $30/oz for long in the coming months, if at all, and that volatility will continue. I would not encourage anyone to invest in silver itself in this environment. However, young primary silver miners are something else completely. As long as the price of silver remains safely above production costs, silver mines have incentive to reopen, and exploration companies are motivated to look for new potential mineable areas.

Even if silver does drop under $30 for an extended period of time, the increasing production of many primary silver miners and silver explorers/soon-to-be producers will far outweigh the drop in silver price in terms of earnings. Looking out 12 months and beyond, even in a protracted environment of, say, $20-25 silver, many explorers/young producers will easily mitigate that potential drop in silver price with their growing production, and share prices will follow suit upwards.

I'm giving a Fool's thumb up to several silver miners, b/c I believe that silver will trade above $35 later this year, and will rise over time from there. However (full disclosure), I am personally invested only in the following, due in part to their extreme production growth potential (and many of them have quite low production costs, too):

Currently Producing:
*Silvermex
*Alexco
*Aurcana

Not Yet Producing:
*South American Silver
*Wildcat Silver
*Sabina
*Bear Creek

Always do your DD, and don't forget to have fun. Fool on!

Added production coming on line should Positively affect the bottom line.
I think the Bolivia mine is safe..

low PEG, strong price uptrend

Down a bit=opportunity.

Dennis Wheeler is an overpaid smock.

Hard work digging up hard money.

Even a dog dragging a broken bulldozer cannot fail when it is lifted on board the QE2 by a tsunami wave from the flying circus.

Turn-around play. Low production cost. Increasing production of silver and gold. Increasing prices for these metals will benefit CDE enormously. Expect it to go to 30 in 2 years.