Coeur d'Alene Mines Corporation (CDE)

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jaj64
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Coeur d'Alene Mines Corporation (CDE)

I took my eyes off the miners side of my portfolio and before I knew it, CDE was down 20%. Considering I bought this close to its high for a long hold I am not too shaken but seeing that much of a drop makes me a little uncertain..

I don't normally read or take Seeking Alpha seriously but they did post this recently:

Coeur d'Alene Mines Corporation (CDE) is trading at $23.80. CDE is a silver and precious metals company based in Idaho. These shares have a 52 week range of $14.02 and $37.59. The 50 day moving average is $28.68 and the 200 day moving average is $25.67. Earnings estimates for CDE are for a profit $3.11 per share in 2011, and profits of $3.33 per share in 2012.

Why Coeur d'Alene shares could rebound: These shares are oversold and look cheap around these levels. It makes sense to buy in stages, and see over time if these shares have truly bottomed out. Insiders recently bought shares around $26 per share. See that buying here.

The data is sourced from Yahoo Finance and Stockcharts.com. The information and data is believed to be accurate, but no guarantees or representations are made. Rougemont is not a registered investment advisor and does not provide specific investment advice. This information is solely educational in nature and not intended to serve as the basis for any investment decision.

What do you guys think?

Link to article:

http://seekingalpha.com/article/274977-rebound-potential-5-stocks-that-have-been-left-for-dead?source=yahoo

Edited by admin on 11/08/2014 - 06:09
Zwipped
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I don't like CDE. They don't

I don't like CDE. They don't even make a profit and that's really bad for a major miner like this. In the past 5-7 years there was always something about this stock, and it was never good.

I would recommend to sell this stock and buy a quality miner (Endeaveour, Greath Panther, Minera Andes, Silvermex, First Majestic, ...)

johnnydrama
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2nd opinion please or expand on your analysis?

I'd love if someone offered a second opinion or if Zwipped expanded on his dislike of the stock. I understand they didn't have a great quarter but they were profitable. Their projected earnings puts their forward P/E about 8.5 whereas First Majestic for example has 12.26 forward P/E, and that's after falling from 25 to 16. I need to see if this thing is not worth staying in because it represents a sizeable portion of my portfolio so pleaaaaaaase analyze!

FogHorn LegHorn
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cde imho

JD i have made alot of money trading options on cde.they used to be shorted big time by the hedgies The hedgies used to go long slw and short another stock as a hedge, they look for a stock with a weakness cde didnt turn a profit for four or five years ,that changed last year. they ,should be profitable going onward (I hate that going forward shitte msm talking heads spout.)I seem to recall some debt concerns,but check out last quarters financials on yahoo finance. That said your entry point into the stock and how much your up or down being considered, can you move into a better stock without loosing your shirt. Unless you are buying a laggard with a view to a big move because they became profitable imho its better to buy the best of breed all things being equal;>)

Zwipped
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cde

johnnydrama wrote:

I'd love if someone offered a second opinion or if Zwipped expanded on his dislike of the stock. I understand they didn't have a great quarter but they were profitable. Their projected earnings puts their forward P/E about 8.5 whereas First Majestic for example has 12.26 forward P/E, and that's after falling from 25 to 16. I need to see if this thing is not worth staying in because it represents a sizeable portion of my portfolio so pleaaaaaaase analyze!

I you have the feeling it represents a too big of a chunk out of your portfolio I would definitely sell a few shares and diversify into other miners. Choice is always upon yourself, but I always follow my feeling about my position in a given stock. When I feel scared it probably means I have too many shares in 1 stock.

Like FogHorn says, this miner (like Hecla) is being used a lot to hedge when going long another miner. That maybe says nothing, but I rather own a miner which the big boys go long on.

canadasilverguy
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CDE is undervalued...

In my opinion, Coeur is ridiculously undervalued here. Now that all threee mines new mines are producing, with a 4th coming later this year, Coeur will produce 20M oz of silver and 250K oz of gold annually.

Costs will be coming down as efficiencies are improved and production will rise. 

Also, in the 4th quarter, Couer will be in a position to pay a dividend or start a share buy back program.

You'll be hard pressed to find a miner with a lower forward PE based on Q4 and Q1 earnings...

Phantom
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CDE and the mining ETFs

@canadasilverguy

Here's what I have noticed with the miners, in particular CDE, etc. The ETFs which are mining based, sold their holdings in early April. Just after they made their March filings. Therefore, the institutional ownership stated on most financial sites is wrong. My opinion is that the ETFs preempted the summer doldrums by selling very early. For example, take a look at the Van Eck filings for GDXJ and GDX. They once held 13 million shares of CDE combined. Today its something like 3 million.

http://www.vaneck.com/funds/GDXJ.aspx (fact sheet on the right side shows the holdings)... NO CDE holdings here

http://www.vaneck.com/funds/GDX.aspx   (fact sheet on the right side shows the holdings)... CDE holdings here

By the way, Van Eck was not the only seller.

Fast forward to today, and you look at the after hour trades on CDE. And the action makes you wonder, are these ETFs trying to buy back in before the next filing at the end of the quarter in 2 weeks? 

http://www.nasdaq.com/aspxcontent/ExtendedTradingTrades.aspx?selected=CDE&mkttype=after

Phantom

obiwan
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CDE

didn't CDE do a reverse 10:1 split a few years back?  Still hasn't made back the ground it lost.

JoeyJoeJoe
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@Phantom

@ Phantom:  +1 for the info.

Do you think this is the case for other miners such as ECU, bear creek mining, TRX, etc?  There was some ridiculous last minute volumes to the upside on these stocks yesterday at closing.

Phantom
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ETFs

@JoeyJoeJoe

I honestly don't know what equities were added to or removed from any of the mining ETFs.

I don't own ETFs. But the curious case of the silver equities (HL, PAAS, SLW, CDE, SVM) got my attention a few weeks back. I was just pointing out to the forum that many investors buy ETFs thinking these ETFs reflect the price of their published underlying equities. And many investors think that the basket of those ETF equities is always constant. Many investors don't realize that these ETFs are actively managed, and are very actively trading. Now, bear in mind that usually these ETFs hold enough shares in any company to be the Market Maker on that equity. Now would you be surprised if the ETF managers had shorted their own ETF, from the top of their choosing, sold thousands of calls on those highly volatile outperforming basket equities, bought lots of puts (think of how many are in the money from this past Friday's close), followed up by dumping many millions of shares of those underlying equities? When I was younger, we'd call that fishing in a barrel! 

Phantom

donpaulo
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I have heard others claim

I have heard others claim that CDE suffers from poor executive decision making.

on another note I purchased a kg of silver from First Majestic but their outrageous shipping policy resulted in my business going elsewhere (such as it is)

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