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Severely beaten down, price target of 7.75, no debt, negative silver cost/ounce, great dividend, I don't see it going down much farther.
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SVM = $14 ! BUY SVM !!!
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SVM is a junior miner that has been beaten down so badly it has nowhere to go but up
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World economy cash crash
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Management offered up specious arguments for production shortfall at Ying mine, laying the blame primarily on workers being "distracted" by the "short and distort" campaign by short sellers.
I find it difficult to believe a miner can't mine because investors are critique the company, so much so that production falls 12%.
It also blamed a labor shortage on the drop, but that was listed as a secondary cause. The more management talks about this issue the less credible I find it so I'm rating it to underperform the indexes.
Recs
The short sellers have been unmasked and are in the process of a multi million dollar law suit,thatshould give pause to all other short sellersthat a Co. as strong as SVM will not just roll over,but will fight back like a cornered TIGAR.JH
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Low cost of production and easy access to increasing Chinese demand for silver makes them a no brainer in the wake of a fraudulent short attack.
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Good prospects, good production with dividend, so in spite of risky political ambient, I think this is headed up, to shorts dismay.
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SVM announced a month ago that their specially commissioned and "extremely costly" audit had cleared them of "substantially" all of the charges put out by those dirty shorters. They announced that they would turn the auditors report over to the NYSE and TX exchanges, and to the Canadian federal authorities. I have called several times and asked whether the reports have indeed been turned over to exchange officials and each time I've been stone-walled. I explained that I was doing this as a holder of considerable SVM equity, but that made no difference.
I was promised by the Investor Relations officer an email when the reports were turned over or to be made public, and have heard nothing to date.
I sold a week and two calls after the announcement
boosted the stock price, and now would have to say that I've taken the side of the short sellers.
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good profit margin, out of reach of US government,silver will be higher next year
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ING Direct ShareBuilder
Silvercorp Metals files lawsuit in New York against stock manipulation scheme
Markets are OPEN: September 23, 2011 9:10 AM ET - Briefing.com
Co filed a lawsuit in New York County Supreme Court charging defendants Chinastockwatch.com, Jerry Katz, Alfredlittle.com, Alfred Little, Simon Moore, and several "John Doe" defendants with spreading "false, defamatory and fraudulent" information about SVM on the Internet and in letters to the media and regulators. Co charged that the defendants did so to drive down the price of Silvercorp's stock in order to make their short positions in the stock more profitable.
Recs
I share the opinion of others that the demand for silver and other industrial metals will continue to increase.
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Price slammed down by an anonymous claim of fraud. In response, the co. is doing exactly what an honest co. would do. I'd say the anonymous guys are the fraudsters, not SVM.
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Anonymous articles are harder to believe
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Shorting scam revealed, big catch up in progress
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silver is in a longterm uptrend. Silvercorp has been targeted recently by short sellers with rumors (circulating via email) of accounting fraud in China. As a result, their shares are down significantly. Naturally, Silvercorp has denied these allegations in the press. Once this is cleared up, SVM should bounce back significantly.
Recs
Appears a "fraudulent" fraud letter has been circulated by someone holding a huge short position. What easier way to make money than try to discredit a stellar company. The company has done an excellent job at rebutting the allegations against them. A fraudulent company doesn't have $235,000,000,000 in the bank and certainly doesn't buy its own shares back.
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Sounds good to me, look at SLW also. My two favorite silver stocks.
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If the price of silver stays high, the most efficient of the miners will rise to the top. SVM, very well organized!
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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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