Excellon gets rating as 10 best Silver stocksLEADERS OF THE PACK
Ten silver stocks and ETF outperforming the majority
A grouping of ten silver stocks (of some 50), plus the silver ETF, have broken out in a front pack, leaving others lagging some way behind.
Author: Barry Sergeant
Posted: Wednesday , 07 Nov 2007
JOHANNESBURG -
Despite silver breaking out in the past couple of trading days to change hands at multi-generational highs, the average listed silver stock is trading at more than 20% off its 12-month high. Similar trend and trading patterns are reflected in listed gold stocks, and in both cases, various fingers point to the growing influence of ETFs.
The official launch of the silver ETF in May 2006 cast a pall over the silver stocks sector. Up to that point, silver stocks were indeed trading at premiums to both North American gold and base metal stocks. Before the end of 2006, the ETF had attracted more than 120m ounces of silver, about 50% more than analysts had anticipated.
Stock price trading patterns show that about ten listed silver stocks have broken into a front pack, characterized by the phenomenon of making fresh price highs in sympathy with silver metal. The list includes the world's biggest silver producer, Penoles (MEX: PNSLF, P237.15 a share), along with other heavyweights such as Hecla Mining (HL, $11.67), Hochschild Mining (HOC.L, £4.87), Pan American Silver (PAAS, $37.25), Silver Wheaton (SLW, $18.20), and emerging producer Silver Standard (SSRI, $47.91).
This exclusive group is joined, in terms of performance, by relative lightweights Excellon Resources (EXN.V, C$1.98), Fortuna Silver Mines (FVI.V, C$3.85), and Impact Silver (IPT.V, C$2.01) - all three are producers - and just a single developer, Orko Silver (OK.V, C$2.04). Among heavyweights, Coeur d'Alene (CDE, $4.59) stands out as underperforming its peer group.