Via www.rawgreed.com:
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For comparison, here is the chart that I posted on September 19th.
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Coeur d’Alene Mines Corporation, ( CDE : 3.86 0.00% , vol: 300) has crossed its 50 day MA, a bullish indicator. CDE has a large number of hurdles to face, mainly a history of decreased earnings and a large number of outstanding shares that has the stock prone to short manipulation. Strong gold and silver prices have been supporting CDE. I wrote earlier that we may experience a short squeeze in PM stocks and it appears that we have. CDE has a long way to go in catching up with its peers. The low trailing and forward P/E of CDE suggests that investors consider the future prospects for CDE bleak looking. I disagree with this assessment. Here is a quote from my September 19th article, Investing in Silver, Coeur d’Alene Mines Corporation Analysis :
The fundamental growth picture looks great. CDE expects to be producing silver at a negative cash cost of 0.41 due to gold by-product credits. The figure was calculated using a price of $550 per ounce for gold and $10 per ounce for silver. With gold now above $720 and silver above $12.90 the cash cost to produce silver for CDE should only improve.
Silver is currently nearly $13.50. CDE has the opportunity to turn from a bad stock to a decent one on the heels of rising silver prices. That expectation alone is enough to create rampant speculation for CDE to play catch up with its peers.
*Disclaimer: The author current holds a position in CDE stock and options.
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$3.83 (09/26/07)
