RE: Review: SST becoming "Silver Wheaton Jr.""Firecracker" wrote:
"Silverstone is NOT a producer of silver. They are merely a reseller of silver."
I was going to include in my posting the following sentence "All references herein to production are in the Silver Wheaton sense of buying silver at a discount and selling it at market". But I thought I said that in other words several times so saying it again would be redundant.
"The silver that Silverstone is reselling is produced by Capstone. Silverstone produces NO silver."
That's not a weakness. It is the strength of the business model which Silverstone has adopted, the same model that propelled Silver Wheaton up 500% in 20 months and gave it what is now a $2.7 billion market cap.
"When they sell their 1.2M ounces of silver they will earn about $10M per year at today's prices. This represents earnings of about .10 per share on fully diluted shares outstanding. Silverstone has issued a gigantic number of new shares in order to be able to show this phoney "revenue" from silver it doesn't produce."
Phoney revenue? How about real revenue? That's not a weakness. It is the strength of the business model which Silverstone has adopted, the same model that propelled Silver Wheaton up 500% in 20 months and gave it a $2.7 billion market cap. All with very minimal operating expenses and under 10 employees! To see the remarkable performance of Silver Wheaton on a 3 year chart, I hope this link works:
https://www.stockhouse.com/comp_info.asp?drawChart=1&originalSymbol=SLW&economy=0&originalTable=LIST&advanced=1&chart_symbol=T.SLW&priceDisplay=1&duration=36&moveavg1=&moveavg2=&movecolor1=ff3300&movecolor2=66cc66&addchart=0&Submit.x=73&Submit.y=17
"Once these shares and the new shares from the warrants that will be exercised in July hit the market there will be a gigantic number of shares available for sale. SST is in a grace period right now because most people have no idea just how many new shares and warrants are being issued. SST will have over 100M fully diluted shares outstaning IMHO. Once the new share count becomes public knowledge and the wait period expires get out of the way."
You either don't know or (more likely) refuse to recognize the difference between fully diluted shares and public float. The 31% of fully diluted shares which are owned by Capstone will not become part of the public float. These are shares in strong hands which will not enter the market, at least not for a long time. Millions of other shares are in strong hands too, shares held on the belief that Silverstone is going to follow up the deal with Capstone with still more similar deals which will ramp up Silverstone's annual production credits, exponentially increase revenue, and lift up the stock price. Private placement investors are likely to have analyzed this better than the general public and are even less likely to sell their shares. There will be some profit taking of course, there always is.
"SST got this deal from CS because they are sister companies and CS wanted to help SST so the value of CS's SST holdings would go up. No other company is going to be involved in a "giveaway" like this just to help SST show some revenues. JMHO"
This is going to proved to be the most blatantly false thing you have said in your posting. Other companies have already signed up for similar deals with Silver Wheaton. As Coach247 pointed out, one company recently signed up for a deal with Silver Wheaton to sell silver to them at a lower price than Silverstone is paying Capstone. And this is merely one of several similar deals which Silver Wheaton has done. Your claim that no other company would be involved in such a deal has already been generally proved false by the various deals that Silver Wheaton has arranged, deals which Silverstone will soon emulate. If you have any integrity at all, I expect you to admit you were wrong when Silverstone announces a new deal signed up with another company to buy their silver on similar terms as Capstone (and Silver Wheaton) got.
tooclassy