I don't have any problem with the way they maximize their equipment. Equipment is cheap when the profits are large and time is short. My only problem is admitting how much the trucks are loaded. I think it would be better if he told the world the trucks are filled to the brim and let the next earnings report tell the story. When beating these false claims, I'd only want to inspire confidence, and not give anyone any other angle to pick those words apart.
god bless him, that was bad. Lack of coherent messaging. No apparent communications strategy behind that rant. Anybody had media training at SVM? Hopefully they can get a clear and simple message line ready for the media rollout next week.
Have been reading the blog since before the move to the new site, but first ever post.
Luckily was not too exposed other than a Jan 2013 option spread when the news hit, but took the opportunity to add in low 7's and then again at low 6's.
I liked the truck comment. It was such a simple response that it made the analysis (I use the term loosely) included in the report look very amateurish. If you know so little that you are unaware that within the industry, trucks are filled above their recommended capacity as standard. Then how are you qualified to make observations on grades and the professionals calculating reserves.
It is like standing outside a bar and calling fraud on the earnings because turnover did not equal people multiplied by recommended drinking limits.
"It is like standing outside a bar and calling fraud on the earnings because turnover did not equal people multiplied by recommended drinking limits."
yeah, and then scraping some urine off the outside of the building to determine the the average alcohol content of each patron.
working for al little (or carson block) doesn't sound all that glamorous
David Morgn will be speaking with someone from Silvercorp and Jim Puplava at 11:00AM PST this Friday - September 16, 2011 concerning SiverCorp (NYSE -SVM).
You're not going to please everybody all of the time. When this all started there was a huge stink about how they did not respond fast enough. Now its about how you can't understand his English. I can barely understand him myself... but I think its necessary for the CEO to come out and do the interviews and not hide behind some slick PR rep. I actually think its a huge vote of confidence, if you think about it. He's not smooth and polished. He's not calm and cool. He's coming out in public and countering the allegations. All the while giving a horrid interview! As a shareholder that's exactly what I want to see. The management getting irate at the criminals. I have no problem with him saying that they will go after them. It is exactly what needs to happen.
I agree to get the criminals both with criminal charges as well as tactics that will pressure them to cover.
You have a great point goldenbear. The rawness in defense of his company that he displayed during the interview was as you would expect someone to behave if caught up in the middle of a short sale scam this big.
I think SVM will be treated very fairly in the interview tomorrow with Morgan.
Holding SVM Jan-12 $12
Interactive Brokers no longer lists SVM as a shortable security. Yesterday it listed approx 450k shares shortable. Today: ZIP, Zilch, Nada!
SVM will keep moving up next week... patience is a virtue my friends. We've got them by the balls. I was able to add more LEAPs today on the cheap...
Financial Sense News Hour with someone from Silvercorp and Jim Puplava at 11:00AM PST this Friday - September 16, 2011 concerning SiverCorp (NYSE -SVM). Sorry, we do not have details on how to access the live feed. However, you can go here....
I'm just glad he was in Vancouver doing the interview. If the bad guys had been correct Rui probably would have been on a flight out of here by now.
Yeah, we made a BIG STINK over slow response. As you probably know, anybody who is in the field of valuating mines considers the quality of management as one of their top criteria for purchasing a stock. How do you judge management behind a computer? You rely on those who have met with them that have a good track record and you look at management past performance. Likely, they have not been through something like this but crisis management and protecting a companies brandnd corporate image when being sabotaged would definitely be a sign of a nimble and fast thinking management. And their is indeed a playbook for these situations and no dirth of well documented case studies on handling corporate sabatoge.
You have to ask yourself could they have minimized damage to the stock if their response and denial had come out hours after the report? I certainly would have reconsidered my sell if they would have produced a statement within hours. Instead, I had to write to the editor of a newsletter for a comment who was in the process of contacting China. Sorry but perception in any business goes a long way. I want to know if something like this should happen in the future, how are they are going to handle it. It's just not the small investor but it's institutional investors as well.
I've also been looking at other metals newsletters and I took a one month trial subscription for https://www.metalaugmentor.com based on somebodies recommendation on this site. I probably won't be continuing it. I found others I like better. But they discuss the SVM situation. I paraphrase and summarize what I read.
-They just like Casey and others defend SVM and point out the amateurish accusations and optimistic about SVM's staunch defense.
-They have put out a forecast of a $10 baseline price by early next year with the caveat that silver price or equities don't "fall apart" Those are greater concerns for me as I've mentioend
-Their valuation report prior to the allegations was at a $10 baseline price
-They are also using various vertical call options at different prices for March for lower risk, leveraging any upside move and heding any downside move. Acknowledging some of these trades could move to zero. In another portfolio, they are using strong straight longs for simplicity.
-Finally, they leave open as questions, how deep is the shorts and what's their limit (answered on this forum), will Chinese government decide to invest money driving up share price, and with their stock buyback what is the companies limitations w/it's buyback?
Interesting that they put out a report and valuation of 18 top silver producers Silver Producers prior to the allegations in May. This is free to the public and no need to be a subscriber. https://www.metalaugmentor.com/wp-content/uploads/2011/07/New_York_Show_2011_Silver_Reports.pdf As you can see, it didn't make the top of it's list as a leveraged silver producer despite the low cost required to take silver out of the ground.
I'm looking through other newsletters to see if their buy rating has changed especially Trader Tracks which I should know by tomorrow. They had it as a buy with a price target of $16.00. My guess from the Al Korelin report that it would probably still be a buy but can't imagine the price target remains the same. These newsletters influence ALOT OF investors. So a change in rating or strategy could also effect the future price. There is alot more to look at that just whether the allegations are true or false.
Lastly, I'm wondering for those of you that visit other message boards if any of you saw a push of activity discussing this equity two or three months prior to these allegations. My working assumption is that if you want to successfully pull something like this off, you would try to push the stock price up months leading to the allegations. Things that make you go hmmm.
There is something that bothers me about how this thread got started. I won't say anymore.
I also know the inherent additional risk that comes with investing in China based operations. I've worked for Chinese companies, I'm familiar with their business cultures, I worked for a Chinese company and I married a Chinese woman. So although this is a Canadian owned business, I definitely want a Chinese person leading the company to deal with government issues. However, there is an obvious trade off when your marketing is done in English speaking countries. I often tell my wife what I'm buying and I can tell you boy did she protest when I bought this one. Because she knows how business is conducted in China as do I. And if I was an investigator you'd better belief that I'd be looking either for a Chinese native or somebody who knows how business is conducted in China. I'll add that I love Chinese culture.
I listened to the Feng interview. I feel bad for the guy. While I'm ranting, notice what he said about Dirty Rectums, I mean Muddy Waters. These are bottom feeders. YET, mainstream financial news media, bloomberg, business week, reuters etc... quotes them as an expert source creating the impression that these folks are experts. They obviously short stocks because they Probably have no other expertise or revenue stream except for harming the reputation of innocent people. Disgusting!
Is what we are looking for simply management of perceptions? Give me a break. Anything that SVM would have said hours after would have marginally affected the share price... but only real, substantive redress of the specific allegations with real numbers and evidence holds any real weight. And that's what they have heretofore done, IMHO. It took them a full day! If that means that they're a poorly run company then you should just be happy that you were able to get out of your position. As for me, I don't care about putting my money in a company that is "perceived" to be legitimate. I'm looking for data. Facts. Documentation. And the allegations don't pass those tests. This kind white collar crime is becoming business as usual HERE IN THE WEST! This is criminal activity, either on the part of shorts or SVM. I don't care about addressing Chinese culture, Chinese business practices, Chinese women here in this thread. All I care about is whether SVM is committing fraud. Bottom line... there has been nothing substantive to indicate that they are.
Be right and sit tight.
Then by your rationale you should sell silver and gold because it is poorly perceived. Just think about what you're saying. I personally think fundamentals are far more important. PERIOD. So we just buy the dips. Au, Ag, and now SVM. Good day, sir!
"Is what we are looking for simply management of perceptions?"
No! That is by no means the only criteria which we should be investing in anything. And it's not what I said,. And if you believe there have been no material changes as just about everybody is stating, then why is the stock down? Because some bottom feeder created a false perception! And if you don't think perception can't kill a stock, at least for an extended time period, just ask the makers of Tylenol, Toyota or another . What you care about can't extrapolated into what others think. And what others think about determines the price of the stock which is in the basement why? Perception. And in my opinion, poorly managed perceptions by what looks like a nice guy.
And if perception had absolutely no bearing and only the facts were important than silver would be at a $100, gold $5000, the dollar would be gone and the stock market wouldn't be rising. All those prices are because of the perceptions people have given to them by the media. Markets are moved by non-tangibles like emotions. It often takes a long time, if ever, for people to realize the facts. Using fundamentals and P/E ratio's hasn't worked since Nixon took us off the gold standard. An ipod is just a fancy USB disk. The perception is much greater.
And if the business culture and politics mean nothing to you but only the amount of minerals in the ground, I have some good buys in Zimbabwe, S. Africa, Bolivia, Ecuador. By all means, determine what factors make something worth your while as I will for myself. And if sitting on this one is you choice, I hope you reach your target. Who knows maybe I'll come for the ride on the way up. But I'm fairly certain my 20% loss will be made back in two weeks in something else.
No you buy it because the perceptions are shifting and now it's a favorable investment hence the term bull market. Like Mike Maloney says, I don't want gold and silver, it's just I don't want anything else. You buy the dips as well as maintain a good deal of dry powder for what will inevitably extraordinary dips.
Sorry for suspecting your involvement. Good to see you are on our side. I am glad your not connected to Alfred Little. I read your posts and it looks like I jumped the gun. I'm just trying to make sense of this like everyone else.
Green Lantern wrote:
I often tell my wife what I'm buying and I can tell you boy did she protest when I bought this one.
I often tell my wife what I'm buying and I can tell you boy did she protest when I bought this one.
One organization I deal with stays out of China too, yet they are always looking into projects in places I would not even consider being a part of (Middle East, the "Stans," etc.). My rationale for not having a lot of fear with China is, since China is making resource deals all around the world, they have to recognize the necessity of instilling confidence in their partners so that the partners will be comfortable making long-term deals with the Chinese. A way to do that is by honoring contracts and encouraging legitimate business activity in areas of need within the country (resource sector for example). So I have more confidence in Chinese operations than in, for example, Zimbabwe, Bolivia, Rep of Congo, etc.).
Right? Wrong? Deluded? Would be interested in any comments you have since you know the country and people.
Makes sense to me JP. I bought 3000 shares on Wed for 6.58. She's grinding higher today penny by penny. Maybe we'll see a mega squeeze.