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Cramer is Wrong Again: Hecla Mining Company

|Includes: Hecla Mining Co. (HL)

Jim Cramer is out of his mind in more ways than one.  Host of the hugely popular "Mad Money" show, this intellectual madman with nearly demonic zeal for the marketshas definitely demonstrated his power to move stocks with mere mention.  Along with his success, he has also been titanically wrong with many, many stock calls.   The popular silver miner, Hecla Mining Company (NYSE:HL) is a prime example of when the Mad Man couldn't have been more wrong.  For an inexplicable reason, Cramer advised to sell Hecla Mining Company (NYSE:HL) on November 9.  The stock suffered a short sharp down move for the day on Cramer's negative word, then continued higher approximately another 30% on the back of its stellar earnings and success.  What is this company that even the great Cramer can't stop?  Let's take a closer look.

 

This Idaho based mining company specializes in the discovery, acquisition, development, production and marketing of silver, gold, lead and zinc.  It owns a 100% interest in several mines and was founded in 1891.  Obviously, it has been riding record silver prices higher since August 2010, but growth has been greatly accelerated over the last several months.  On October 26, the company reported an impressive 30% increase in cash flow over same time last year.  Revenues climbed 21% and gross profits advanced 40%.  Technically, price is way above the 20-day Simple Moving Average and overextended on the daily upper Bollinger Band.  Emerging markets expert Tim Seymour has noticed the over extension saying, "up 22% in 5 days, sell that!"  It's important to remember that during extreme bull moves, stocks can stay in an over extended state longer than anyone can imagine at the time. 

 

Cramer got burned on Hecla Mining Company (NYSE:HL), wonder if Seymour and the rest of the short brigade will suffer the same fate?