hold Silvercorp, Ying could double earningsLundin says hold Silvercorp, Ying could double earnings
2007-04-19 20:34 ET - In the News
Brien Lundin, in the March, 2007, edition of the Gold Newsletter, says hold Silvercorp Metals Inc., recently $18.69, suggesting that the company could turn into a $25 stock within weeks. Mr. Lundin said buy Silvercorp five times, between June, 2003, and November, 2005, at prices ranging from 71 cents to $3.62. He then said "reclaim your risk capital" at $10.55 in March, 2006 -- sell half, perhaps. Assuming a $1,000 investment each time, selling half then would have yielded a profit of $16,901. The remaining investment ($2,500 cost) would now be worth $34,370. The company released record earnings for the third quarter, the Ying silver project in China driving most of the profits. Mr. Lundin says Ying's production is about to get a big boost because of an almost-complete 600-tonne-per-day mill. The mill, once on-line, will increase Silvercorp's milling capacity to 1,000 tonnes per day. The letter writer forecasts that this expansion could double the company's current earnings per share. Mr. Lundin likes to follow director Rui Feng, once president of Pacific Mineral Inc., a past Lundin pick. Fellow letter writer Douglas Casey, a latecomer, also said buy Silvercorp. He said buy in May, 2006, at $18.90.