Seeking Alpha
Value, growth at reasonable price, contrarian, growth
Profile| Send Message|
( followers)

Concerns over the debt ceiling and a default by the U.S. Government have led many investors to seek shelter in precious metals and mining stocks. Silver has advanced about 20% in just the past month alone and silver mining stocks have jumped higher as well. Certain silver stocks appear to be poised to drop after recent gains, as they now are trading at overbought levels. It's not likely that the United States will default, and if this potential crisis is averted, a swift correction could take place in precious metals and mining stocks. Even if there is a default, the economy could go into a double dip recession and that would likely reduce industrial demand for silver, so it might make sense to take some profits now regardless of what happens. Here are some silver/mining stocks that could move sharply lower if there is no default:

Silvercorp Metals, Inc. (NYSE:SVM) is a silver and precious metals company, based in Canada. Silvercorp Metal shares were trading around $8 per share in June and have jumped about 40% from those levels in just a few weeks. Here are some key points for SVM:
Current share price: $11.30
The 52 week range is $6.15 to $16.32
Earnings estimates for 2011: 57 cents per share
Earnings estimates for 2012: 71 cents per share
Annual dividend: 8 cents per share, which yields .7%
Book value: $2.34 per share

Silver Wheaton Corp. (NYSE:SLW) is a silver and precious metals company, based in Canada. Silver Wheaton shares were trading around $31 as recently as June so this stock has made sharp gains of roughly 30% in just a few weeks.

Here are some key points for SLW:
Current share price: $39.39
The 52 week range is $17.88 to $47.60
Earnings estimates for 2011: $2.12 per share
Earnings estimates for 2012: $2.27 per share
Annual dividend: 12 cents per share, which yields .3%
Book value: $6.78 per share
Endeavour Silver Corp. (NYSE:EXK) is a silver and precious metals company, based in Canada. This stock was trading around $8 in June and has since rallied about 25%.
Here are some key points for EXK:
Current share price: $10.69
The 52 week range is $3.10 to $12.75
Earnings estimates for 2011: 55 cents per share
Earnings estimates for 2012: 88 cents per share
Annual dividend: None
Book value: $1.66 per share
First Majestic Silver Corp. (NYSE:AG) is a silver and precious metals company, based in Canada. This stock was trading around $17 in June and has climbed up about 40% in about one month.
Here are some key points for AG:
Current share price: $24.29
The 52 week range is $3.76 to $26.88
Earnings estimates for 2011: $1.27 per share
Earnings estimates for 2012: $1.81 per share
Annual dividend: None
Book value: $2.49 per share
Pan American Silver Corp. (NASDAQ:PAAS) is a silver and precious metals company, based in Canada. Around mid June, this stock was trading under $29 per share and has since risen about 10%, which is the least of all the mining stocks named here.
Here are some key points for PAAS:
Current share price: $32.37
The 52 week range is $22.26 to $43.06
Earnings estimates for 2011: $3.07 per share
Earnings estimates for 2012: $3.11 per share
Annual dividend: 10 cents per share, which yields .3%
Book value: $13.28 per share
Coeur d'Alene Mines Corporation (NYSE:CDE) is a silver and precious metals company based in Idaho. This stock was trading under $24 per share in June and has surged about 20% since then.
Here are some key points for CDE:
Current share price: $28.63
The 52 week range is $14.54 to $37.59
Earnings estimates for 2011: $2.60 per share
Earnings estimates for 2012: $3.12 per share
Annual dividend: None
Book value: $22.98 per share
iShares Silver Trust (NYSEARCA:SLV) is a silver exchange traded fund that tracks silver bullion prices. This exchange traded fund was under $34 at times in June and has gained almost 20% in the last few weeks.
Here are some key points for SLV:
Current share price: $39.89
The 52 week range is $17.06 to $48.35
Earnings estimates for 2011: Not applicable
Earnings estimates for 2012: Not applicable
Annual dividend: None

Data is sourced from Yahoo Finance. No guarantees or representations are made. Hawkinvest is not a registered investment advisor and does not provide specific investment advice. The information is for informational purposes only. You should always consult a financial advisor.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: 7 Silver Mining Stocks That Could Move Sharply Lower With No Default