Sean Brodrick sees silver reasserting itself as a monetary, investment and industrial metal. South of the border, some of the Mexican miners have an “embarrassment of riches”—which have largely escaped the attention of Wall Street.
“I’ve been to Endeavour Silver Corp. (NYSE:EXK; DBF:EJD; TSX:EDR) and seen their projects in Guanajuato and Guanaceví-they look great. I expect they’ll be acquiring either a private or a public company. I’m not hearing that from them; just seeing how they’re positioned, sitting on cash, looking around for this deal and that deal. What that would do to the share price depends on the structure of the deal, but it can’t hurt.”
“I think they’ll do extremely well. They had nice revenues last year, and in the first quarter of this year revenues increased something like 115% over the year prior. That’s not hard to do when the price of silver is soaring, of course; but the nice thing about each of these companies I’ve mentioned is they went through the low prices we had in silver and came out stronger. Each of them had to cut back, really tighten their belts. That made them much leaner and meaner. Their growth picture is really good now because they’ve already been through the bad times. So as the price of silver goes higher, they can have real growth in their earnings and their revenue. And they’re all ramping up their production. They have new land packages.”
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A natural resources analyst for Weiss Research, Inc., Sean Brodrick travels far and wide seeking out investment values in the sector, primarily among the small-cap and micro-cap players. He edits Weiss Research’s Crisis Profit Hunter, Red-Hot Canadian Small-Caps, Red-Hot Global Small-Caps and Red-Hot Commodity ETFs, as well as making regular contributions to Uncommon Wisdom Daily. He is also a contributing columnist to Dow Jones MarketWatch and a frequent commentator on one of Canada’s premiere financial websites, HoweStreet.com.