You Ess Ay Tee Ay Day

I've been told 72c by a couple of TA heads, 72c to 74c by another, but for sure we're close to seeing USA.v breakout and the moment it goes and reaches for a share price that better reflects its current earnings potential.

Because in the end , screw the TA. With $40/oz silver and even taking into account the company hedge, this thing is on less than 5X forward earnings. It's going over a buck as long as silver behaves itself in the next few weeks, take that to the bank. Dirt cheap here, even if production is merely adequate.

UPDATE: sing it loud, sister:

The 'Small Silvers' 2010 sweepstakes September update

The end of the month is in and so we catch up on the performance of our basket of small silver stocks, as promised in the last update dated August 31. So here we go:

 It's safe to say that the silver stocks we follow had a very good September all told, but some are doing better than others. Top performance by quite some way now is from U.S. Silver (USA.v) with over 100% racked up this year and looking good for the 2010 full year prize now. We applaud this stock and all of those who were smart enough to buy some. 

First Majestic (FR.to) had a superb September and has moved smartly into second place (up 70% or so YTD) on the back of strong fundies results. Bear Creek (BCM.v) is in the bronze medal spot, up 60% approx. Then comes Fortuna Silver (FVI.to) up 40% YTD and then, surprisingly, the silver ETF (SLV) in 5th spot, which means there are still a whole bunch of these stocks that supposedly offer leverage to the metal that are lagging Ag. In the case of MAG Silver (MAG.to) in 6th the difference is tiny, but the four stocks underneath (EDR.to) (GPR.to) (ECU.to) (IPT.v) have far fewer excuses for their poor performances.

So, catch you all end of October for the next update in the race. Please be having nice day. Thank you.

The 2010 Small Silver Sweepstakes update

Checking in on the state of play in our sweepstakes challenge, as we take nine small silver players and compare their 2010 Year To Date performance to how silver-the-metal is doing via the silver ETF (SLV).

(click to enlarge)

This update shows the field has been shaken up considerably in recent weeks. Our top player is now Bear Creek Mining (BCM.v), a company that has been up'n'around the top echelons ever since we started the series in the 2009 season. But second place deserves a decent mention, as US Silver (USA.v) has made a strong move forward on the back of a decent earnings report recently (and we suspect, some of the larger newsletters putting its name forward as a possible investement). I took a good hard look at the USA.v earnings release and in general I liked what I saw. The high cash cost is still an issue but this can play in favour of those investors who think silver is going much higher from here and can look to USA.v for great leverage. That one is up to you to decide so DYODD, dude.

Meanwhile, MAG Silver (MAG.to), though treading water somewhat recently, has held on to the bronze medal spot. Next comes our benchmark SLV, which means all the others left to mention have not performed as well as their main product in 2010 (so far at least).

A final thought: The range shown in this update is the smallest ever, with just 36% between the best and the worst performers. Also, only two of the 10 tickers are in negative territory now, which is probably good.