Lundin says 3:1 split will boost SVM''s valueHello everyone,
Lundin says 3:1 split will boost Silvercorp's value
2007-10-19 17:27 ET - In the News
Brien Lundin, in the September, 2007, edition of the Gold Newsletter, says Silvercorp Metals Inc., recently $19.22, will easily get shareholder approval for a 3:1 split, and this will boost its market value. 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 would have yielded a profit of $16,901. He said buy again in May, 2007, at $19.50. The remaining investment ($3,500 cost) is now worth a pleasing $36,306. Silvercorp's first quarter earnings totalled $15.9-million. These impressive earnings came mainly from increased capacity at the Ying mine, leading Mr. Lundin to assert that Silvercorp has shown that it can run mines profitably. Meanwhile, Silvercorp is set for a 3:1 split, which Mr. Lundin thinks will boost its value. Mr. Lundin likes to follow director Rui Feng, once president of Pacific Mineral Inc., a past Lundin pick. Mr. Feng is now president of New Pacific Metals Corp., a more recent Lundin pick. Fellow letter writer Douglas Casey was late to the party, but also likes Silvercorp. He said buy in May, 2006, at $18.90.
Cheers,
I_luv_GVG