comparison shoppingI have no idea where this is going in the short or even medium term but I think if we are interested in a pure silver company, we need to do some comparison shopping.
SLW has a PE ratio of 30 to 40. SST has a PE ratio of 8-10.
SLW has 600milliion in debt. SST has no debt and 30 million in the bank.
SLW has no insider buying that I'm aware of. Lots of stock option grants but no insider buying. SST has lots of insider buying.
SLW is leveraged to the hilt so it will have a much more difficult time making future deals. SST is completely unleveraged, has lots of cash and should be ready to go on distressed companies that need financing.
In fact SLW could take out SST at a 50-100% premium and still be accretive due to the huge discrepancy in valuation.
It's impossibel to know which will do better in the long run but it seems to me, from a comparative point of view, the odds are stacked in our favor.
I think the difference in SP can only be explained by the fact that SST isn't as well known.
Good luck everyone.