Hecla Mining Company (NYSE:HL)

Stock saw a deep plunge in the last week down from 12 to about 9... but what drove it?

Seems that their announced release of preferred shares looks to many like it was a desperation play for a cash infusion, and the common stock took an appropriate hit (or maybe disproportionate). The reality, it seems, is that the company is aiming to buy out its main partner in one of its silver mines -- which doesn't seem like a frivolous or desperation move at all.

This is/was a strong performer in its sector a month ago when it was trading at 11 or so. The biggest worry was that it might be selling at a bit of a premium compared to others connected to silver and related metals. Now, if you don't believe that the stock offering is fundamentally bad news -- this has become a deep discount buy, selling under 9 dollars a share.

Looks like a solid "oversell" reaction opportunity here, and not a bad defensive play anyway, connecting to precious metals in a potential down market isn't a bad hedge regardless.

target price 14.68 $ been a great run since 2005 the year i bought it.

Im in on 02/27/07 for 500 at 8.36 so this pitch may be a bit bias.

silver aint going away for some time and neither is this 100+ year old idaho mining company. Public since 70.

its got a pretty wide base its coming off of and has a topside of around 36ish.

I worked greenscreek mine (Admiralty IS Nat'l Monument Alaska) back in 89 and built its state of the art on site refinery there. Then it was a top silver (with limited gold tailings permitted)producer and still figures to be. hecla is looking to buy a bigger stake in this mine in the future.

hecla produces cheaper than most all other producers of silver.

given precious metal high flying status as of late this pull back is widely expected.

insiders seem to be supporting this stock at around 11 so that might be a fair place to go long. I may or may not redouble there if signals and accounts are favorable

Good balance sheet. Productive and proven. Note: I'm a bit concerned about their exposure in Venezuela, due to political conditions.

Mining will always be an important part of the country, and the world for that matter. Many materials come from mines, from metal to diamonds, and this is a company that you can buy low and sell high in. I am sure that it will only increase.

Somewhat risky but well positioned in metals which provides some protection. Good revenue growth and solid cash position. Some caveats...increasing cost of revenue, decreasing yield from some key mines, much of the 'cash' is locked up in Venezuelan bolivars and will need to be freed up to really count as profits on the international market. Also, litigation, litigation, litigation.
Management is making good moves to protect their future. Silver is probably bulletproof into the future.

all metals will be hot for the next decade or so.

resources depleated in many old mining areas. Visionaries (and Fools) look for that odd sample that is golden...

One of the largest Silver Miners in the world, the fact that they have copper and gold only increase the prospects for long term success

valuation

In 2006, Hecla achieved the best financial results in the company's history. I think this is a good bet for the metals part of your portfolio. The stock price is right on for a buy with a long-term look to the future.

Strong Company, in the RIGHT sector

expanding silver production benefots from lagre output and higher prices.

A great precious metals company with exposure to the rising price of gold, silver and base metals. Reasonable P/E, fast growing revenues, this stock is a winner for the next five years!

I am content with my year's observation of this company. Solid for the next year regardless of mining. Great business plan in place.

There is more demand for silver than supply. HL is the lowest cost producer.

Newer opportunities could gain big.

Silver and zinc

New method

the shine is back on silver. Big fourth Q coming