Silvercrest Metals: Bitcoin-like setupGood evening everyone. I hope you all are having a lovely Christmas season, prepping for a new year of continuing your pursuit of your goals and ambitions. Make sure during this time you look at investments with objectivity, removing any new year hype that may come along with this time of year.
I looked at silvercrest metals about a year ago with quite a bit of disbelief and bias, similar to how many looked at bitcoin in 2016-2017. I'm not saying the results will be the same, but price action is playing out in a very similar manner.
If you look across the broader market of miners and precious metal prices in general, there are just about zero miners playing out in this fashion in terms of price.
Most will look at price in disbelief (like I did last year) and see an unsustainable bubble. But let's keep the fundamentals in mind...
AMEX:SILV has the following under it's belt:
6.03 quick ratio - $6 in cash for every $1 dollar of debt
0.0051 Debt to equity - They have acquired assets with almost zero debt
Are they profitable? No. Most miners are not pulling a profit. However, taking losses can be a tax strategy that corporations use during growth periods. So it's hard to say if their revenue minus expenses are healthy at the moment.
At the end of the day, price tells all. If we break out from here on good news, there's no overhead resistance, and a lot of room to move.
However, I do partially expect there to be a consolidation period here as the silver price cools off. We will see... Price tells all.
I will be keeping my eye on this one and update as time goes on. If you choose to trade, use stop losses. Miners are volatile.
Silvercrest
SILV - Big Volume Surge Upwards Due To Permit In SonoraSilvercrest Metals Inc is a Canada-based metals exploration company. The Company is engaged in acquisition and exploration of mineral property interests in Mexico. The Company's projects include Primary Kimberlite Projects, Alluvial and Eluvial Projects and Tailings Re-Treatment Projects. The Company owns interest in DMI Minerals South Africa (Pty) Limited and interests held by the Company's South African Black Economic Empowerment partner Nozala Investments (Pty) Limited. The Company has interest in over two mineral concessions, Cruz de Mayo 2 and El Gueriguito, which are located in Sonora State, Mexico. The Company's Las Chispas, Sonora, Mexico property is located in northeast of Hermosillo, Sonora, Mexico, and consists of approximately 20 concessions. The Company's other projects include The Silver Angel Property, The Estacion Llano Property and The Guadalupe Property, which are located in Mexico.
SHORT INTEREST:
241.11K (06/28/19)
P/E Current:
-75.93
Analysts Price Target:
$6.57
Analysts Recommendation: BUY
PERMIT Information Source: finance.yahoo.com
