RE:RE:RE:ALL the Simpletons paying insane Premiums to The Financial Post reports in its Tuesday, Feb. 2, edition that some investors are trying to bring a short squeeze to the silver market. The Post's Gabriel Friedman writes that even as the price of silver surged -- and one company in particular, First Majestic Silver, rose as much as 31 per cent -- analysts cast doubt that Redditors could repeat the success they found with Gamestop in the silver market.
National Bank Financial analyst Don Demarco (who covers First Majestic) says: "All things being equal there's a lot of different dynamics. I just don't think you're going to get the same returns (as they did) with Gamestop." Although Mr. Demarco had recommended buying First Majestic, it was far from the top of his picks.
For one thing, he says First Majestic has always been expensive compared with peers, based on the ratio of its share price to the net value of its assets, by his analysis about 2.47. Reddit investors may be focused on First Majestic because among silver miners, it has the highest 'short' interest at 23 per cent -- meaning 23 per cent of its outstanding shares are held by investors who believe the stock price will decline. The Post that makes First Majestic similar to Gamestop.