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Junior Miner Endeavour Silver to Outperform Silver, According to Leading Financial Web Site Penny Stock Detectives(April 30, 2012)
New York, NY (PRWEB) April 30, 2012
Sasha Cekerevac, co-editor for Penny Stock Detectives, believes that silver is currently in a healthy consolidation phase before the bull market will resume. Cekerevac argues that mining companies tend to overshoot to the upside and downside, so an opportunistic investor who is patient can take advantage of these swings. Cekerevac has found one particular junior miner that he believes will outperform: Endeavour Silver.
Endeavour Silver is a junior mining company extracting silver primarily in Mexico, notes Cekerevac. Management believes that higher silver prices will be coming and this thesis has recently led them to acquire an additional silver mine in Mexico from AuRico Gold. Total cost is between $200 million and $250 million, with the possibility of up to 100 million in Endeavour shares. This additional mine will boost silver production for Endeavour by 12% in 2012 and effectively doubles proven and probable silver reserves for the firm.
According to Cekerevacs recent article, Endeavour recently reported first-quarter earnings for 2012, with silver production up 19% and gold production up 26%. Total revenue for the firm was up 39%, compared to the 2010 quarter, for a total of $49.0 million. The interesting strategy by management, says Cekerevac, is that the company currently only sells enough silver to meet its operational budget when silver prices fall, while holding excess silver for times when silver prices are higher. The editor believes that this certainly is a unique management team that has such a firm conviction in silver prices and is one of the most unique silver junior mining companies.
As prices moved up earlier in the year, Endeavour did indeed sell some of its inventory, according to Cekerevac. As the recent pullback in silver and gold occurred, management has decided to once again hold back selling a portion of extracted silver and gold until prices rebound.
According to Cekerevacs article, the company expects to extract 4.3 million ounces of silver and 26,000 ounces of gold in 2012. While the stock has recently sold off, there is support at the $8.00 level. If silver prices do turn around and break above $35.00 an ounce, then Cekerevac believes you should see a strong move up in the Endeavour, especially considering that it holds back reserves of silver.
According to Cekerevac, when looking at penny stocks involved in a volatile commodity like silver, it helps to have a long-term view. Junior mining companies have significant potential for capital appreciation if the underlying commodity, like silver, resumes its upward bias. Considering the level of money printing worldwide, Cekerevac thinks that higher silver prices are quite possible. While trading in junior mining companies that extract silver can be potentially profitable, one must have a thorough and comfortable understanding of where the commodity is going and a long enough time horizon to handle the inherent volatility, says the Penny Stock Detectives editor.
Published every business day, Penny Stock Detectives researches and analyzes low-priced opportunities in the stock market and individual stock market sectors. Penny Stock Detectives reports on penny stocks, small-cap stocks, micro-cap stocks, high-profit potential plays mostly under $10, and the stock market in general.
To see the full article and to learn more about Penny Stock Detectives, visit http://www.pennystockdetectives.com.
The editors of Penny Stock Detectives believe low-priced stocks, when researched properly, present investors with great opportunities to accumulate wealth and to increase the value of their investment portfolios. You can learn more about Penny Stock Detectives at http://www.pennystockdetectives.com.
Sasha Cekerevac, BA, and Danny Esposito, B. Comm., lead editorial stock analysts at Penny Stock Detectives, in conjunction with stock market guru George Leong, B. Comm., have just updated their breakthrough video, If You Missed Apple, Shame on Us; If You Miss Thishighlighting a company these stock analysts believe looks very similar to Apple Inc. in its early days. To see the video, visit: http://www.pennystockdetectives.com/video/pt/index.php?sb=PRESS.
Read the full story at http://www.prweb.com/releases/2012/4/prweb9449755.htm.
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