Hi guys! What do you think about the future of PAAS?
Pan American Silver
lookin to buy at around 23.50 ...
chart has broken down as 50 day ma has moved below 200 day...
1) In my opinion, PAAS is especially appealing now because they are just now initiating a share buyback of 5% of their outstanding shares and they plan to cancel those shares. This should wreak havoc with anyone shorting this stock. I would love to see a short squeeze here!
2) Bolivia has removed a great deal of uncertainty regarding how much additional royalties that the government will charge miner's such as PAAS. Peru has also recently clarified its position on mining fees and lifted uncertainty.
3) Silver is heading into its best season (Sept - Dec) and Silver has seemingly busted out of its trading range.
4) PAAS surged powerfully last Autumn when silver broke out of its trading range. Silver looks to surge again. PAAS is well off its 52 week high (mostly due to the Peru/Bolivia concerns) and it should close that gap on the strength of so much good news.
Disclosure: I own 600 shares and a Jan 2012 call option.
The CEO of PAAS (which, in TSX exchange, has ticker symbol PAA) recently bought a few thousand shares at price around $31-$32. You can check it out here: http://canadianinsider.com/coReport/allTransactions.php?ticker=paa
PAN AMERICAN TO ACQUIRE MINEFINDERS AND CREATE THE LEADING GEOGRAPHICALLY-DIVERSIFIED SILVER PRODUCER: http://www.panamericansilver.com/investors/news/
PAAS is down 10% after the announcement. Is it just me or does this look like a buying opportunity for PAAS? The shareholders of PAAS obviously don't like it but $2.36 billion market cap for PAAS seems like its way undervalued.
I noticed PAAS went down alot today....didnt know why.... I also noticed in recent weeks Minefinders has been pretty strong....I can whisper to you that casey research likes Minfinders alot ....and some months ago , when Peru became a 'problem location'....they recommended selling PAAS. which turned out to be a wise decision. ....
so they stopped liking PAAS , they like MFN....and now I will be very interested to see what they think of this development. I cant of course give away their proprietary info.... but will form my own opinion as I do my due diligence.
I would have liked to buy MFN around 9 or 10 dollars to have a position.... now of course its too late.
But it might be worth taking a pass at PAAS around 20......
very interesting move by Pan Am ...... plus ... positive news about the bolivian and peruvian regulations.... might be worth considering.
I'm seriously considering taking the money and running but I may change my mind before the final day.
I know I'm not the only one that has noticed the horrible performance of the miners lately. According to GATA over half of all new positions in PAAS are being shorted. This is what "Ranting Andy" posted in his newsletter a couple weeks ago. It makes complete sense. Everything is manipulated now days. Why would they not hammer the miners? It took me a while to get my head wrapped around it, but he is right. The only way I will return to this sector is if the corruption stops.
.... that was my plan up to now, to trim miners , sell as much as I can at break even and find a way to get out, and weight more heavy in bullion and PHYS PSLV, and keep it simple.
But now, upon this latest interview of Jim Sinclair about the greece default/no default/ ISDA thing ....would change the picture for a while ....maybe like....holding onto the miners, see them gain profits, look to sell and take profits at some point.... but give them a chance to go up with the QE to infinity .....before the system collapses.
What fun ahead !?!
don't we T?! I definitely see what you are saying, but I'm not sure that's how it will play out. If this what the late 70's I would agree with you 100%, but presently we are talking about the global economy collapsing. The problem that I see specific to the miners and not the metals is they can short them forever, or until they can no longer create money out of thin air. The COMEX is in trouble because they will be competing with the PAGE in 4 months, but I don't see wall street/the government cracking down on naked shorting.
I do believe there will be a day when the mines are left alone and not manipulated. I think when we finally see that day, the end game will be upon us. I'm sure currencies will have collapsed by then, and we will be in a hyperinflationary world. By this point I'm not sure you will even be able to get your hands on physical, due to overwhelming demand.
It would not surprise me if you see governments around the world nationalizing mines, or put huge windfall taxes on them. I believe we will have a gold backed currency once again. That means the mines are basically the new banks. I just don't see politicians in this scenario leaving them alone. They literally produce money, and I can pretty much guarantee the government will be all over it.
Do I know what the future holds for sure? NO! I'm just a guy trying to help out his fellow Turdites. To be honest I hope I am dead wrong and the miners shoot to the moon. I just see a lot of counterpart risk in the miners compared to the physical metals. I have really changed my outlook from a few years ago. I use to own about 90% miners and 10% physical, but now my portfolio has completely flipped. I am not trying to bash your strategy T, just trying to give you an alternative perspective. I wish you and everyone here the very best!
Feb 23 Pan American Silver Corp posted a fourth-quarter net profit, helped by higher metal prices, and raised its quarterly dividend by 50 percent. For the fourth quarter, net income was $95.5 million, or 89 cents a share, compared with a net loss of $5.8 million, or 12 cents a share, a year ago. On an adjusted basis, it earned 61 cents a share. Sales for the company rose 9 percent to $212.4 million. During the quarter, the company produced 5.3 million ounces of silver and 17,239 ounces of gold, a decrease of 6 percent and 10 percent, respectively, from a year ago. Pan American said it will buy Minefinders Corp Ltd for about C$1.5 billion in order to more than double production by 2015,
PAAS bounced off 19.96 yesterday, close to it's 52 week low, and is again down to 19.98 currently. Last time it fell below 19.93 was 2009 when GWB was leaving office and silver was much cheaper. I might be setting myself up by buying a miner, but this looks like as good of time to enter as any. Thoughts?
Yeah, why not take a starter position in PAAS right around their 52 week low?
They are profitable with a low PE and they will greatly increase production (they recently bought Minefinders) over the next few years.
And their product is in no danger of going "off patent". haha
PAAS is selling at a price that would make you think Silver is a lot lower than it actually is. Will you have to wait? Yeah, probably. We all will need extra patience to wait it out this time around. The mining sector is pretty painful right now and sentiment is way way down.
I rode PAAS up from $13 to $42 and then watched it drop finally selling 1/3 of my shares at $27. Ugh!
Pan American has run laps around its' established North Am. primary Silver producer competition like CDE and HL and continues to impress with ramping projects and making strategic acquisitions.
Did much care for this company in years past, but now consider it to be among "best in class", along with SLW and AG.
Would be buying more at $20 if any dry powder was left.