NYSEAM:SVLC - Post by User
Post by
shermandrockon Oct 14, 2013 10:51am
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Post# 21814675
A thought regarding Juniors
A thought regarding Juniors
There have been a number of "experts" (AKA newsletter writers and other pundits) who have warned that "not all juniors will survive due to their inability to raise cash OR, they will survive but, they will dilute their shareholders interests by selling shares at these depressed prices.
With SVL, neither of those scenarios will take place as SVL is / will provide the cash flow necessary to complete the expansion at Santa Elena and will use the cash flow from the increased production to advance LaJoya or, any other properties that they currently have or will acaquire.
As such, does that not make SVL one of the more attractive Juniors out there? I think that it does.
In fact, I project (yep, me and my $0.02) EPS of $.24 for FY2013 alone. At a PE of 12 (made that up) that implies a price of $2.88, a 75% appreciation from the current price.
For FY2014, I project (ummmm.......make that my $0.04) EPS of $0.42. Yep, again a PE of 12 a yields $5.04 share price.
I have to tip my hat to management. Either they are extremely fortunate to have made those required decisions to bring us to the current state at this point in time or, they are very bright dudes individually and collectively. I tend to think it is the latter.
Having said that, insofar as they are self-funded (recent LOC notwithstanding), dmeonstrated sound managerial decision making and have a potential "company maker project" (borrowed that phrase) in LaJoya, it is only a matter of time before SVL gains the recognition that it deserves, IMO (up to $0.06 now).
Once the SE expansion is funded, I believe that SVL should initiate a dividend equal to 10% of the gross revenues of the trailing quarter. Think about that folks. As owners, we are entitled to a return on our investment. What better way for the company to "look out for the interests of shareholders" that to initiate a dividend?
I intend to lobby the company to bring that about. If you have a like minded opinion, I would ask that you do the same. Companies that share the rewards with their shareholders are afforded higher PEs. A critical mass of like minded shareholders can bring this about.
What say you folks?