Searchlight Innovations Inc T.SLX

P/E Ratios

[Mineshack]

Price to earnings ratio doesn’t always report a company’s greatest gains. Great Panther’s recent 4¢ per $4.50 share earnings don’t look all that good until one realizes that the company also paid 13¢ per share from income for upgrades and exploration. This was during a year when the Silver price averaged less than half of what it is today. Ahhh….Now we can recognize the value. And their success proves that ‘drill as we mill’ on a historical and relatively under explored resource is a good business plan.

Silver Standard Resources also just released its 2010 report. This $30 per share producer stated Net Earnings of $4.44 per share producing a 6.75 P/E ratio. Hmmmm…….. Upon closer examination we can see that management included the $442.3 million sale of its Snowfield and Brucejack properties as earnings. Now unless they can sell those two properties every year, I doubt very much that the 6.75 P/E ratio can continue. What a disappointment!

I expect that Silvermex will soon have earnings of its own but, with the expected upgrades and exploration that will carry this company to much higher valuations; it will depend largely on accounting method as what the P/E ratio will be.

 

whypromote. I know you did well on that first 25% because SLX was about $1.03 when you sold all. If it reaches your goals with this slow but, steady uptrend then you should succeed. A press release after market close or during a halt could end this opportunity immediately. I wish you luck.

 

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mineshack

 

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