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I'm All In.
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I am probably making this pick too early but I really don't care. The discount given on their future silver production is too great for me to continue to ignore this stock. I have successfully bought and sold this in real life several times and am planning to reenter once the chart starts to show a little stability. Buy at your own risk, but it's my belief that this is one of the best silver plays in the market. Best of luck.
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Silver miners coming back and gpl has thevgoods
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Just a gamble. The CEO here is an opportunist that will pump the stock and then sell it. And it's in Mehico.
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Silver is the next doubler
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Rebound from current price, SILVER to resume uptrend.
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I think precious metals will be the only safe haven as economies continue to struggle. It currently seems that the demand for silver will only go up from here. There will be some ups and downs but the overall picture seems to point to higher and higher prices over the next decade. Up until now GPL has been a well run company with little debt and good cash on hand. If they continue this trend, I think they can profit handsomely from the rise in the silver market and so will investors.
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Should be a good growth pick. Should probably wait for it to go under $2.50, but I have my target set for $5 in the next year or so. Numbers look to good to keep this one down.
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Cheap with great growth potential and very little debt.
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Diminishing silver in face of industrial need & frivolous political monetary policy= rising prices
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Silver just can't hold its top end which I believe we have seen for this cycle.
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Great potential.
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Resources
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outperform
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Fading goldmingXpert.
It's been a few days since his latest hit piece on the stock and although he is too much of a coward to short it in real life or even red-thumb it in CAPs, I am opening this pick to track the progress of the stock and immortalize his call for all to see.
Let's see how this turns out.
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GPL is poised to move in a big way.
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The notorious stock pumper, Jonathan Lebed, was paid $20,000 to pump this stock.
From his website:
"My firm Lebed Biz LLC was compensated by a third-party (B&D Capital Partners) $20,000 cash for a one-month GPR investor relations contract which has since expired. We could potentially be compensated more for providing investor relations services regarding GPR in the future, although no agreements have been made at this time."
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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!
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Have to give all the props to TFsinchiruna on this one... would have never seen this stock if not for his brilliant rantings about GPL (http://caps.fool.com/player/tmfsinchiruna.aspx)
With that said, GPL currently represents 6% of my portfolio. They are a very volatile stock, but I think there are a lot of reasons why silver will do well going forward. Many of these reasons have been espoused over and over, but the big ones in my opinion are:
1. governments of the world are still printing money like it's going out of style... being led by the two most "influential", the U.S. and the EU. Let's face it... unemployment is really high, and even higher in some places like Vegas. The housing market is in the toilet... and while it doesn't currently seem to be getting much worse, I really think that it will be a couple of years at best before we see buyers that aren't to afraid they'll buy a house that will be worth less next year.
2. debt is crazy... while I don't feel there is any chance of the U.S. defaulting, when you start looking at Greece, Portugal, Italy, California, Illinois etc... the picture becomes a lot more bleak.
3. these issues are all linked, and the next arse sandwich stands a good chance of being a global shift changer. Let's face it... economies are tied together whether we like it or not... if factories aren't producing, then raw materials aren't being bought blah, blah, blah...
4. QE2 is about to run out... if the Fed does nothing, and lets it run out without continuing something else (which I believe is the right thing to do) the pressure that will be placed on stocks will be huge. If they do something, it will greatly decrease confidence that the economy is actually getting better (which is quite debatable).
All of these things and more are working together to depress the dollar and help push folks into hard assets. For fun, I just checked what interest I'm getting on my savings account...yeah baby... 0.24% Sheesh... I knew there was a reason I didn't keep anything in the account. Put a grand in the account at the beginning of the year, and get an extra two and a half bucks for Christmas... oh wait, it won't be quite that much...
Company news on GPL can be found here:
http://www.greatpanther.com/s/NewsReleases.asp?ReportID=451787&_Type=News-Releases&_Title=Great-Panther-Silver-Reports-First-Quarter-Production-Silver-Increases-By-1...
From a recent news release and from an interview with the CEO:
Silver equivalents for 2011 are established using budget prices of US$1200/oz Au, US$20/oz Ag, US$0.90/lb Pb and Zn.)
Silver is within spitting distance of $50, and they're baseline for silver in 2011 is $20 an ounce... nice... real nice...
For those interested, you can download the investor package from the company here... mine maps, drill plans etc... interesting stuff...
http://www.greatpanther.com/s/IR_Portfolio.asp
From their FAQ: Q What is the cash cost per silver ounce? A The total combined cash cost per ounce of payable silver (net of by-product credits) for the year 2010 was US$7.43.
They also have they're own TV website that show various operations etc... http://www.greatpanther.tv/
Bottom line: I'm still quite bullish on silver, but not nearly as much as I was when silver was at $25. Currently I have GPL at 6% of my portfolio, another 5% sitting in SLW shares, and another 12% sitting in physical silver. Of course I like GPL, and think they will do well, but they are volatile... it's nothing to see the shares trade up or down 5+% in a day... so not for the faint of heart... in the near term silver could correct down... possibly by as much as 25% or more... heck, just look at the charts... it's up 26% or so since the beginning of the month... but I think that looking at a longer timeframe (3-5 years) silver will be higher... industrial use is up, and demand is outstripping supply.
Just my two cents of course... Do your own DD, and good luck
Chris (AirForceFool)
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