RE: Not so strangeYeah... it's been a rough ride.
but not only for us...
My call for a 10x multiple may be agressive, but 6 to 10 should be doable.
Earnings of $0.50 per share should also be doable.
If silver keeps rising and metals firm I suppose we could see $1 even before a global recovery is in full swing.
I am sure you can find analysts who think a global recovery is multiple years away and others think it will start next year.
When I think about this stock I remember a mistake I made a while ago.
I owned a large amount of a small oil exploration company.
The share price dropped and I felt sick
The price stayed below my purchase price for almost a year and then rose to 20% above my purchase price.
I sold it all.... and thought "hey +20% in one year is pretty good"
Then the drill results came in and the stock price tripled.
In my opinion my mistake was not waiting for the play to unfold.
(I suppose you could argue my mistake was having a large position in a speculative company but anyway....)
The play was that this company was going to drilling wells in asia... I did not wait to see if they found oil.
I think that this play, spm, is a play that will run if, and when, there is a recovery in metal demand.
Watching the daily swings in stock price before the play even starts, burned me before.
Having said that.... I heard a guy on BNN call for $40 silver (not that it counts for much....)
If that happens I will gladly eat my "metal recovery" words and tip my hat to those looking for silver to win the day.
You know on another topic.... (and to drone on....)
I was wondering the other day what the picture will look like when they work through all of the low grade development ore.... hmmm.....
Cheers....