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Joseph Harry

 
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  • General Mills - Well Deserved Sell-Off Following A Very Weak Quarter [View article]
    Why are you yelling and what are you talking about?
    Sep 19 04:49 PM | 1 Like Like |Link to Comment
  • Silver Wheaton: The Best Way To Play Silver? [View article]
    Hi Ernie,

    I agree about lower prices being detrimental, but I wrote this for those who are expecting prices to go higher. Also, the AXU contract was originally set up in 2008 I believe. Prices were around where they are now and may have even been lower. Also, SLW usually buys the by-product, not the primary metal the mines are mining for. In my personal opinion the AXU deal is isolated.
    Sep 17 12:08 PM | 1 Like Like |Link to Comment
  • Silver Wheaton: The Best Way To Play Silver? [View article]
    Hi Ernie,

    1.) I think this is exactly the case with Alexco, but as an isolated incident I don't see it as a problem with other more fundamentally solid mines as of now. Could be down the road, but I'd like to think the bigger and stabler players are more squared away. If silver prices go lower, who knows, I intended to write this for those bullish on silver though.

    2.) This is definitely a tough company to value, but as far as p/b and p/s ratios the company is trading on the lower end of its historical valuation levels over the last decade if you strip out the financial crisis. P/E might be less appropriate considering volatility of silver prices.

    3.) Other capital providers get payments in the form of interest on the principal. SLW buys streams for around $4 or $5 at a fixed cost. If silver pops, they are making a lot more in profit than a bank will on a loan. Also, it could be argued that the financial sector as a whole is trading well below where it used to or maybe even should, but me personally, I don't make the connection between SLW and capital providers.

    All in all, the contract issue such as what happened with AXU is a major risk if it becomes a "new normal", but AXU is a smaller company that had to shut down production and needed help. If silver prices indeed go up, I don't see this as a reoccurring issue. I see big profits dropping straight to SLW's bottom line. This is based solely on increasing silver prices, however.
    Sep 16 11:30 PM | Likes Like |Link to Comment
  • Silver Wheaton: The Best Way To Play Silver? [View article]
    Hi Mike,

    I agree with you on Alexco, I just don't see companies like Goldcorp or Barrick pulling the same stunt as AXU, a company with roughly only $55 million market cap. It seems to me that this deal is an isolated incident, and may have even been doomed from the start:

    http://seekingalpha.co...

    If amendments become a reoccurring thing, then yes, SLW isn't a very good investment going forward, but I don't see it happening.

    I also agree that lower silver prices will be destructive to the bottom line, but lower prices will also be destructive to holders of the SLV as well, and possibly even worse. I intended to write this article for those who are bullish on silver prices, I'm sorry if I wasn't as clear as I should have been.
    Sep 15 07:42 PM | Likes Like |Link to Comment
  • Silver Wheaton: The Best Way To Play Silver? [View article]
    Hi pjlim3,

    Thanks for reading.
    You may be right. This is why I put this issue in the "risks" section of the article, because of this possible scenario.

    The flipside to this, however, is increasing industrial use (such as electronic devices). Silver doesn't seem to get recycled as much as gold does either.

    SA Contributor Jason Russ also wrote an excellent article on other uses for silver going forward:

    http://bit.ly/1m9ozJ3
    Sep 15 06:37 PM | Likes Like |Link to Comment
  • Silver Wheaton: The Best Way To Play Silver? [View article]
    lildpropmsv,

    Sorry I misread what you were saying.

    @Mike,

    So do you think this will be the way business will be done going forward for SLW? I thought that the amendment with AXU from June was more like a "special situation" type of thing to help them get back to production. SLW gets cash from the deal as well.

    "The amendments to the underlying Silver Purchase Agreement are subject to Alexco paying Silver Wheaton $20 million by December 31, 2014 (or such later date as the parties may agree), with Silver Wheaton taking a lead role via participation in $5 million of any Alexco equity raise in excess of $10 million towards the $20 million payment. In addition, a Silver Wheaton area of interest is established to include additional Alexco currently owned and future acquired properties within one kilometer of existing Alexco holdings in the Keno Hill Silver District. The amendment will be effective for a 10 year term from the time mining production re-commences in the District, with an option for Alexco to extend the amendment for another 5 or 10 years for an additional $10 million or $20 million, respectively."
    Sep 15 06:18 PM | Likes Like |Link to Comment
  • Silver Wheaton: The Best Way To Play Silver? [View article]
    Hi lildpropmsv,

    Are you referring to the amended agreement between the two companies from June? If so, this was widely circulated in press releases.

    http://yhoo.it/UGHcYF

    Thanks for reading,
    JH
    Sep 15 12:52 PM | Likes Like |Link to Comment
  • Silver Wheaton: The Best Way To Play Silver? [View article]
    Because of the above 3 charts
    Sep 15 10:22 AM | 1 Like Like |Link to Comment
  • Why I'm Considering An Investment In GM [View article]
    Update: I decided to book profits on Ford, and will be splitting the proceeds between GM and Bank of America. Order in for tomorrow.
    Sep 8 12:38 PM | 1 Like Like |Link to Comment
  • Distinguishing Between 'Core' And Financing Debt [View article]
    Thanks Hardog.
    Sep 2 02:34 PM | Likes Like |Link to Comment
  • Distinguishing Between 'Core' And Financing Debt [View article]
    Hi TF17,

    I definitely think credit quality is always key, but that might be a better subject for another article.

    Thanks for reading,
    JH
    Sep 2 02:33 PM | Likes Like |Link to Comment
  • MetLife: A Value Play [View article]
    Chubby,

    Thanks for reading.
    I haven't looked at PRU in detail. Maybe I will give them a look-over when I get some spare time, if I remember correctly it's trading below book as well.
    Aug 14 05:37 PM | Likes Like |Link to Comment
  • General Electric: Yield And Growth At A Good Price [View article]
    The last 15.8% increase wasn't good enough?
    Aug 11 04:18 PM | 2 Likes Like |Link to Comment
  • Revisiting Corning: Is There Still Room To Run? [View article]
    Hi Steve,

    Thanks for reading and the thoughtful comment.
    Corning is a great company no doubt, it just depends on what you are willing to pay. Maybe I'm being a little overly cautious, but it's mostly due to the looming possibility of a correction as the market continues to rise, as well as less than optimal GDP forecasts.
    Jun 26 04:41 PM | Likes Like |Link to Comment
  • Disney: Excellent Growth, But At What Price? [View article]
    "The movie "Planes" is not a Pixar movie."

    Sammy2, you're right, my mistake. Correction submitted.
    Jun 21 03:11 PM | 1 Like Like |Link to Comment
COMMENTS STATS
189 Comments
183 Likes